The State of Diverse Businesses in California
California Office of the Small Business Advocate
First published June 2023
Minority-owned small businesses are a pillar of the California economy. They account for roughly 46% of all businesses in the state, support 10.9% of all jobs in the state annually, and generate 3.5% of California’s economic output. In general, small businesses create local jobs, increase market competition, and build communities. Locally-owned small businesses also spend more locally than nonlocal business, generating higher local tax revenues and allowing more money to remain in the local economy.
The following findings represent the most detailed available estimates of California minority-owned
small businesses and their corresponding economic, fiscal, and social impacts.