Multicultural Advisor is derived from the integration of two government data sources –the Survey of Minority and Women Owned Businesses, which is part of the Economic Census and the household demographic information comprising the US Census. The information tracks male/female business ownership, as well as the highest level of cultural distinction (American Indian, Asian, African American, Hispanic, Native Hawaiian and White). This added dimensionality supplements the MarketStance Commercial Insight capability to size and segment the market by class of business, firm size and location down to the county level.
Businesses with owners of a given culture or gender group having a 51% or greater share of ownership are identified in the database. Market potential and types of businesses held by gender and cultural groups vary and can be identified as characteristic of their demographic.
Multicultural Advisor incorporates a current economic forecast allowing insurers to identify those segments that are growing the fastest. For example, in 2010, African American owned businesses are forecast to grow at a rate faster than previously faster growing Hispanic owned businesses.
Women owned businesses account for 30% of all US business operations and they represent the majority of business owners for many services industry classes. Furthermore women and ethnic minority owned businesses are forecasted to grow employment at a faster rate than their majority counterpart.
Knowing the distribution of these businesses across the US market landscape gives insurers a competitive advantage to effectively tap this growing market.