As part of our ongoing analytical series on small business, Experian just completed a data study focused on U.S. minority owned businesses.
Based on a sample of 2.5 million small businesses, 21 percent of these businesses were minority owned, and approximately 32 percent of the sample is owned by women, two groups that regulators and industry professionals are interested in helping to grow and succeed.
Minorities struggle with credit management
The study shows that minority-owned small businesses struggle when it comes to credit management compared with the overall small business population. For example, the average business credit score for a minority-owned small business is 49.7, nearly 5 points lower than the general U.S. small business population.
Helping our small businesses prosper through education
A primary objective at Experian is to help educate small business owners on the importance of maintaining a positive credit profile. For example, keeping debt levels low and paying bills in a timely manner can help small business owners better position themselves for growth opportunities.
In terms of payment behavior, 1.2 percent of minority small business owners had at least one business credit card account severely delinquent (91-plus days), while 8.3 percent had at least one consumer credit card account severely delinquent (90-plus days). Comparatively, 1.1 percent of the general small business owner population had at least one business credit card account severely delinquent, and 6.8 percent had at least one consumer account severely delinquent.
These are just a few highlights, you can discover more key findings by downloading our infographic or watching the webinar recording to the right.
Watch the recording of the webinar as Peter Bolin from Experian Decision Sciences goes in-depth on our research.