The number of businesses in Virginia owned by people of Asian origin increased 46 percent from 2002 to 2007, outpacing the 21 percent overall growth rate of businesses in the state, according to U.S. Census Bureau research released Thursday.
The growth rate in Virginia mirrored a national trend, as the number of Asian-owned firms in the U.S. rose 40 percent to more than 1.5 million from 2002 to 2007. That was more than twice the national business growth rate of 18 percent, the Census Bureau reported.
"(Asian-owned) businesses in Virginia have a very, very large impact for the economy," Tinh Phan, chairman of the Virginia Asian Chamber of Commerce, said Thursday at a news conference at The Jefferson Hotel in Richmond to announce the census data.
About 7 percent of Virginia businesses were owned by people of Asian origin in 2007, compared with 5.8 percent in 2002. Nationally, about 5.7 percent of firms were Asian-owned in 2007, compared with 4.8 percent in 2002.
The 44,575 Asian-owned businesses in Virginia generated about $13.2 billion in sales in 2007. That was a 71 percent increase from about $7.7 billion in 2002, when there were 30,457 Asian-owned firms in the state.
"That (growth) does not surprise me at all," said Rumy Mohta, a native of India who has lived in Virginia for 27 years and owns a travel agency and a technology consulting business in the Richmond area. "It really shows the significant amount of money that Asian-owned businesses produce in Virginia."
Nationally, Asian-owned businesses generated $507.6 billion in receipts, a 55.4 percent increase from 2002.
The Census Bureau data, collected from a survey of 2.3 million firms conducted every five years, sheds no light on how Asian-owned firms were affected by the recession.
Though data covering the recession years haven't been collected yet, growth in Asian and other minority-owned firms may have slowed during the credit crunch because those businesses often have less access to capital, said Charles A. Funk, assistant division chief for the Census Bureau's company statistics division.
Chesterfield County resident Nat Ganesh said he took a job with a company after his independent consulting business lost its largest customer in 2008.
"I would imagine that my experience was repeated quite a bit" among other small businesses started by immigrants, said Ganesh, a native of India who has lived in the U.S. for 30 years.
"The question is, How long will it take to get back to normal?" he said. "From what I can see, it is going to take awhile. But there is definitely more optimism now."
About 7 percent of Virginia businesses were owned by people of Asian origin in 2007, compared with 5.8 percent in 2002. Nationally, about 5.7 percent of firms were Asian-owned in 2007, compared with 4.8 percent in 2002.
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