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Facts On Working Women 

U.S. Department of Labor
Women's Bureau 

No. 89-6
December 1989


HISPANIC ORIGIN WOMEN BUSINESS OWNERS

According to the Bureau of the Census, U.S. Department of Commerce,
women owned 2.7 million sole proprietorships in the United States
in 1982. In a recent study by Faith Ando and Associates,
"Minorities, Women, Veterans and the 1982 Characteristics of
Business Owners Survey, A Preliminary Analysis," it was reported
that Hispanic women owned 2.1 percent of all women-owned sole
proprietorships in the United States in 1982. 

Similar to firms owned by all women, those owned by Hispanic women
(76 percent) are more likely to be in services (49 percent) and
retail trade (27 percent). The six States with the highest share of
firms owned by Hispanic women are California (33 percent), Texas
(23 percent), Florida (12 percent), New York (6 percent), New
Mexico (4 percent), and Arizona (3 percent). Further, according to
the Ando report, among sole proprietorships owned by Hispanic
women: 

-- Almost 55 percent were home-based, less than among all
women-owned sole proprietorships (61 percent).

-- About 91 percent had no employees and 6 percent had one to four
employees. Women and minorities were employed in 6 percent of the
firms.

-- About 91 percent did not export any of their goods or services.

-- In 1982, 48 percent of the firms had less than $5,000 in sales
and 36 percent had between $5,000 and $24,999 in sales.

-- Most showed some profits. About one-fifth suffered a net loss.
Of firms owned by Hispanic women, 45 percent had 1982 profits of
less than $5,000; 26 percent had profits between $5,000 and
$19,999; and 18 percent had a net loss of less than $5,000. Among
all women-owned sole proprietorships, 40 percent had profits below
$5,000 and 15 percent had a net loss of less than $5,000. 

-- About 21 percent reported none of their income originated with
the firm. On the other hand, 23 percent reported that 100 percent
of their 1982 income came from their businesses. 

-- Forty percent had no initial capital and an additional 39
percent began with less than $5,000.

-- Seventy-three percent of Hispanic women reported their firms had
no equity capital. Of those who used equity capital, the dominant
source (13 percent of firms) was family.

-- With respect to the firm's initial debt ratio, 65 percent had no
debt. However, 12 percent had between 91 and 100 percent debt. Two
debt sources dominate in the case of firms owned by
Hispanic women. They are banks (51 percent) and family (32
percent).

-- About 55 percent of firms owned by Hispanic women in 1982
survived until 1986. The two chief reasons given by those that
discontinued operations were insufficient profit (43 percent)
and personal (47 percent).


Characteristics of Hispanic women business owners: 

-- 78 percent were between the ages of 25 to 54

-- 72 percent were married

-- 78 percent had been business owners for less than 7 years.
Twenty-nine percent had been in business for less than 1 year. 

-- 74 percent were founders of the firm covered in this report.
About 9 percent had previously owned another business. 

-- 84 percent had previous paid employment. Although 69 percent had
had no managerial experience in paid employment, 49 percent had
attended business courses or seminars. About 39 percent had at
least 1 year of college. 

-- Had few role models. Only 29 percent of Hispanic women business
owners had a close relative who owned a business. Of those with a
role model, 29 percent reported they had worked for a
relative. About 39 percent of all women sole proprietors had role
models.

Opportunities for Hispanic and other women business owners should
be enhanced by the Women's Business Ownership Act of 1988 which
authorizes $10 million over a 3-year period for private
organizations to provide financial, management, marketing, and
technical assistance to women business owners. Information about
programs funded under this Act may be obtained from the Office of
Women's Business Ownership in the U.S. Small Business
Administration at (202) 653-8000. 

The Office of Women's Business Ownership recently announced a
program to foster long-term mentoring relationships between
successful women-owned businesses and fledging women-owned
businesses of 1 to 3 years. Additional information about this
program, Women's Network for Entrepreneurial Training (WNET), may
be obtained from the Office of Women's Business Ownership at the
number listed above. 


________
Sources: "Minorities, Women, Veterans and the 1982 Characteristics
of Business Owners Survey, A Preliminary Analysis," Faith Ando and
Associates, Haverford, Pennsylvania, September 1988; and U.S. Small
Business Administration. 


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