Top 21 Worst States for Minority-Owned Businesses


A recent report published by the Small Business Administration’s Office of Advocacy gave an estimate of the number of minority-owned businesses in all 50 states, including the District of Columbia, for the year 2011. Once the numbers were released, Bloomberg Businessweek put those numbers into perspective and compared them to the minority population in each state according to the 2010 Census.

Based on those numbers, Florida led the pack in regard to opportunities for minority entrepreneurs, with one minority-owned business for every 11 minority residents. Falling at the bottom as the worst state for minority businesses is Iowa, who has one minority-owned business for every 43 residents.

According to the data, states with the largest minority population seem to have the highest minority entrepreneurship rate and vice-versa. However, a few states like Arizona are an exemption to the rule. Despite having the tenth highest minority population in 2010, Arizona is placed at 41 out of 50 on the list for best and worst states for minority entrepreneurs, with one business owner for every 31 residents.

See the graph below for a look at some of the states that fell at the bottom of the pack when it came to offering opportunities for minority business owners.


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