Asian Indian-owned biz have strong impact on US states

Himani Kumar
Chicago, May 1 (PTI) Asian Indian-owned businesses are
having a strong economic impact in many states across the US
in a wide range of sectors and are the major engine of
economic growth, be it computers, hospitality industry and
medical/physician sector, according to a recent survey.
According to the Survey of Business Owners, 2007,
released on April 26 by the US Census Bureau, there are an
estimated 308,514 Asian Indian-owned businesses in the United
States with USD 152 billion in revenue, employing 850,191
people with an annual payroll of USD 26 billion.
"Among minority and immigrant communities, Asian Indian
entrepreneurs stand out in both the size of their businesses
as well as profitability and business sectors they can be
found.
The survey captures this economic footprint at a
very detailed industrial sectoral level," Bruce Corrie, Dean,
College of Business and Organisational Leadership at Concordia
University, St Paul, Minnesota and a board member of the India
Chamber of Commerce, told PTI.
The survey gives a detailed landscape where these
businesses are located both geographically as well as in terms
of industrial sector. The US Census Bureau conducts the survey
every five years.
"The survey paints a vivid portrait of the economic
footprint of Indian Americans in the United States. It is the
most detailed profile of Indian American entrepreneurship and
allows us to see the important job creating and wealth
producing engine of economic growth all across the United
States," Corrie added.
In comparative terms, the receipts of Asian Indian-owned
firms is larger than the state GDP of 21 states, including
Kentucky and Iowa and almost as large as the GDP of the
wealthiest state in India – Maharashtra.
In terms of employment, Asian Indian-owned firms as a
group employ more people than most of the largest Fortune 500
companies. For example, McDonald's employed 385,000 people
according to Fortune Magazine, 2010.
The top three sectors for these businesses were computer
systems design and related services, office of physicians and
traveler accommodations. However, in terms of aggregate
revenue, the largest sector was gasoline stations.
In terms of employment, the largest sectors were
traveller accommodations, computer systems design and related
services and limited service restaurants.
The top states for Asian Indian-owned businesses were
California, New York, Texas, New Jersey, Illinois, Florida,
Georgia, Virginia, Pennsylvania and Maryland.
Even in a small state like Minnesota, Prakash Puram, who
is president and CEO of iXmatch was on President George W
Bush's Export Council. Mahendra Nath, another businessman was
inducted into the 2002 Minnesota Business Hall of Fame.
In 2007, while the sector of computer systems, design and
related services generated an annual payroll of USD 5 billion
with 79,839 employees, traveller accommodations (motels,
hotels) generated USD 2 billion with 161,129 employees,
gasoline stations generated USD 6 billion with 43,072
employees, and grocery stores generated USD 4 billion with
29,415 employees.
California generated the maximum payroll at USD 4 billion
followed by New York at USD 2 billion and Illinois at USD 1
billion.
On the future, Corrie was positive. "Domestically in the
USA, Indian firms will continue to serve as an engine of
growth and innovation. At the same time, they will be an
important resource and partner as India moves into the next
phase of economic growth," he added.