Jun 20, 2018
In March of 2018 a newly released study published by the IFA Foundation, Franchised Business Ownership by Minority and Gender Groups, shed new light on entrepreneur trends in the US. Data was analyzed over a 10-year period from 2002 - 2012 and the results show a boom in ownership rates among minority franchisees. Overall, we saw the share of minority-owned franchised business increase by 50%, which is impressive growth by any standard. While the entire published study can be found here, we dove into a few of the study's highlights for this month's blog update.
For franchised businesses in which the sole owner is female, there was actually a decrease in ownership from 2002 to 2007. However, over the next 5-year period, growth increased by +10 percentage points from 2007 to 2012, a 49% increase over a 5-year period.
Between 2002 and 2007, the growth among these two ethnic groups was relatively flat. However, a breakthrough occurred after 2007 when each diversity segment increased franchise ownership by 63% and 100%, respectively.
As was previously mentioned, 30% of all franchised business is minority-owned. However, among all other non-franchised businesses that number drops to 19%. This is a true testament to the outreach that has been done by companies looking to expand franchise operation and include diversity candidates in that growth.
The data trends show tremendous growth; however, when compared to the proportion of the population each segment represents, there is still room to increase and develop the pool of diversity candidates, especially among Women, Hispanics and African Americans.
A Promising Course!
Overall, the data tells a very promising story for entrepreneurs from diverse backgrounds looking to enter or expand their portfolio within the franchised business category; we can state with confidence that there is both demand and opportunity. Be sure to check back in for more exciting news as 7 Eleven continues to drive the mission of closing the gap of minority owned franchises!
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