According to the Census Bureau, in 2018, over 2 million Asian American businesses employed nearly 3.5 million people, contributing over $700 billion to the GDP. Asian American businesses are critical economic contributors, strengthening our nation’s economy. In order to produce and service their customer-base, Asian American businesses procure raw materials and services. According to Nielsen Research, the Asian-American population is also “…the fastest-growing multicultural group in the U.S. with a buying power of $1.2 trillion…”. As one of the fastest growing business ownership demographics, Asian American businesses not only create wealth but contribute to the downstream businesses, which is why marketing and selling to this demographic sector should be prioritized. If these numbers aren’t convincing enough, there are many reasons why doing business with the Asian-American businesses makes logical sense.
Highest Rates of Independent Businesses and Self-Employment and Second-Generation Business Ownership
Among businesses owned by immigrants, Asian-American owned businesses have grown by almost 72 percent (Pew Research 2017). For companies doing business with B2B companies, such promising numbers means a growing client base. Most second-generation immigrants (children of business owners) are vested in their family businesses. Combine business ownership with higher education levels of second-generation American-born children and you will find that businesses owned by Asian-American are more innovative and hungrier for high-end automation. These businesses have buying power and an appetite to reinvest in their businesses on an on-going basis.
Access and Understanding of Global Markets Creating Export Opportunities for US Businesses
American businesses are constantly looking for new business markets. With growing populations all across Far East and Southeast Asia and the declining population across the Western nations, businesses in the US need access to the Asian consumer market to continue growing. Traditionally, lack of understanding of the cultural norms and language barriers have limited growth and access for US companies to do business in Asia. However, many U.S. businesses are realizing that local Asian-Americans businesses as a middleman is a fantastic opportunity to capture new markets. The local Asian-American businesses are able to straddle both hemispheres and provide access for export opportunities.
Diversity and Inclusion – Innovative Minority Owned Businesses
Recent geo-political developments have shed a negative light on the Asian-American population but have also raised awareness of the need for diversity and inclusion to help companies understand how to continue doing business with a diverse population. For large companies looking for a diverse supplier base, especially in highly innovative technology and manufacturing sectors, Asian-American businesses offer more choices, skills and expertise, and access to innovation. Organizations such as the Asian-American Chamber of Commerce can serve as great resources to help large companies identify and introduce qualified suppliers that many procurement departments might not have considered in the past.
From access to growing population of wealthy consumers to highly educated suppliers of innovation, there are many reasons why companies should consider marketing and selling to Asian-American Businesses. The reasons listed here are just a few of many with the intent to start a conversation. Join the Asian-American Chamber of Commerce to learn of export opportunities through trade missions and matchmaking to US-based Asian-American businesses.
