Sacramento Ranks Among Top Metros For Successful Minority Entrepreneurs

Source: Sacramento Business Journal, Bill Cieslewicz
Photo: Sacramento ranks among the top U.S. cities for successful minority entrepreneurs, according to a report released Tuesday. (ASISEEIT)

The River City ranks No. 7 out of the top 50 U.S. metros in the study from online loan broker LendingTree. Among the takeaways: The Sacramento metro area ranked high in its percentage of minority-owned businesses in operation for more than six years, 60 percent.

Minority entrepreneurs have a major presence in the U.S. with about 8 million minority-owned businesses across the country. However, not all of those business owners are succeeding. Several factors could be at play including access to capital and location.

LendingTree researchers looked at firms that minorities either own wholly or equally and the cities in which the strongest performers are located. Topping the list was San Francisco, followed by San Jose and Washington, D.C. St. Louis finished in last place, followed by Kansas City and Cleveland.

Other findings:

Four of the top 10 cities are in California.

St. Louis has struggled with revenues and longevity for its minority-owned businesses – only 18 percent have exceeded $500,000 in annual revenue while 27.6 percent survive past their first six years in business.

The top places in the study share a high percentage of minorities who are self-employed – around 4 percent in the top three metros. California leads all states in the number of minority-owned firms with employees.

To view the full report including methodology, click here.