Who owns the most businesses in America? Race and entrepreneurship data explained

When people ask, "What race owns the most businesses in America?" they’re often looking for a simple answer - like white people or Black people. But the truth isn’t that clean. Business ownership in the U.S. doesn’t break down neatly by race. It’s shaped by decades of policy, access to capital, education, and community networks. And if you’re running a home-based business, those factors hit even harder.

White Americans own the largest number of businesses - but that’s not the whole story

According to the U.S. Small Business Administration’s 2023 Survey of Business Owners, white Americans own about 74% of all employer businesses in the U.S. That’s the highest share by far. But here’s what most people miss: that number includes businesses with employees. If you look at non-employer businesses - the kind most home-based entrepreneurs run - the picture changes.

Non-employer businesses make up over 80% of all U.S. businesses. These are solopreneurs, freelancers, consultants, and side-hustlers who don’t have payroll. In this group, white Americans still lead in raw numbers - but the gap narrows. Hispanic-owned non-employer businesses grew by 30% between 2017 and 2022. Black-owned ones grew by 23%. Asian-owned ones jumped 29%.

Why does this matter? Because if you’re working from your kitchen table, selling handmade goods online, or offering virtual coaching, you’re likely in the non-employer category. And that’s where the real action is right now.

Hispanic entrepreneurs are the fastest-growing group

Hispanic-owned businesses now number over 5.1 million in the U.S. That’s up from 3.3 million in 2017. They’re starting businesses in construction, cleaning services, food trucks, and digital freelancing. Many of these are home-based, especially in states like Texas, Florida, and California.

What’s driving this? Two things: population growth and community support. Hispanic communities have strong informal networks - family members pooling money, neighbors referring clients, WhatsApp groups sharing tips on Etsy or Shopify. These aren’t fancy incubators. They’re real, grassroots systems that work.

And they’re not waiting for banks. Only 23% of Hispanic business owners got a traditional loan in 2023. Most used personal savings, family loans, or credit cards. That’s the reality of home-based entrepreneurship for many minority groups: bootstrapping, not venture capital.

Black business ownership is rising - but still faces major barriers

Black Americans own about 2.5 million businesses. That’s up from 1.9 million in 2017. That’s a 32% increase - faster than any other group over the last five years. But here’s the catch: Black-owned businesses are, on average, smaller. The median annual revenue is $48,000. For white-owned businesses, it’s $164,000.

Why the gap? Access to capital is the biggest hurdle. A 2024 Federal Reserve study found that Black entrepreneurs are twice as likely to be denied a loan than white entrepreneurs with the same credit score and income. And when they do get approved, they get smaller amounts.

Many Black home-based business owners rely on side gigs to survive. A Black woman running a home-based candle business might also work part-time at a pharmacy. That’s not a choice - it’s necessity. The system isn’t designed to help them scale.

Asian Americans: high ownership, but underreported

Asian Americans own about 2.4 million businesses. That’s 7% of all U.S. businesses. But the number might be higher. Many Asian-owned businesses operate under family names or aren’t formally registered - especially in food delivery, tutoring, and translation services.

Chinese, Indian, and Vietnamese entrepreneurs dominate in tech services, nail salons, and convenience stores. But a growing number are going digital. Indian Americans are launching SaaS startups from their homes in Austin and Seattle. Vietnamese Americans are running e-commerce stores on Amazon FBA from apartments in California.

What’s unique? High educational attainment. Nearly 50% of Asian American business owners have a bachelor’s degree or higher. That helps them navigate online tools, legal paperwork, and digital marketing - even without outside funding.

Native Americans and other groups: invisible but active

Native American business ownership is hard to track. Only about 100,000 businesses are officially counted. But many operate on tribal lands under different rules. Others sell crafts, herbal products, or art online - often without registering as a business.

Native entrepreneurs are turning traditional skills into online income. Think beadwork sold on Etsy, wild rice shipped nationwide, or Indigenous language apps. These aren’t big companies. But they’re real businesses. And they’re growing.

Same goes for Arab American, Middle Eastern, and Pacific Islander entrepreneurs. They’re everywhere - running home-based bakeries, translation services, and social media agencies. But they’re rarely included in mainstream data.

Home-based businesses are leveling the playing field - a little

Here’s the good news: starting a home-based business doesn’t require a lease, a storefront, or a big loan. You just need a laptop, an internet connection, and the will to start.

Platforms like Etsy, Fiverr, Shopify, and Instagram have made it easier than ever for women, minorities, and immigrants to launch without gatekeepers. A Latina mom in Detroit can sell her abuela’s salsa online. A Somali refugee in Minnesota can offer Somali-to-English translation on Upwork.

These aren’t unicorn startups. But they’re feeding families. They’re building wealth. And they’re bypassing the traditional systems that kept them out for generations.

What’s holding people back - and what’s changing

Three things still block equal access:

1. Capital - Banks still favor applicants with generational wealth.
2. Networks - Who you know still matters more than what you know.
3. Knowledge gaps - Not everyone knows how to file taxes as a sole proprietor or set up a business bank account.

But change is happening. Nonprofits like the National Association of Minority Entrepreneurs and the Minority Business Development Agency are offering free workshops on legal structure, bookkeeping, and digital marketing. Community lenders are stepping in with microloans under $5,000. And more people are learning from YouTube tutorials instead of business school.

The future of American entrepreneurship isn’t about who owns the most businesses. It’s about who gets the tools to build one - no matter their race, background, or bank balance.

What this means for you

If you’re thinking of starting a home-based business, don’t wait for permission. Don’t wait for a grant or a loan. Start with what you have: a skill, a recipe, a service, a passion.

Check out free resources from the SBA’s Women’s Business Centers or SCORE.org. Use Canva for logos. Use PayPal for payments. Use Instagram to find your first 10 customers.

It won’t be easy. But it’s possible. And every single home-based business you start - no matter your race - helps rewrite the rules.

Starting a business isn’t about who has the most money. It’s about who’s willing to start - and keep going.