FIGURE 6-4 Number of Phase II awards received by minority-owned businesses in 1992-2005.

SOURCE: U.S. Small Business Administration, Tech-Net Database.

tions that receive awards) were lower than for all other applicants. This result is summarized in Figures 6-5 and 6-6 for Phase I and Phase II, respectively.

Figure 6-5 shows the differential rates of success by ownership status for Phase I. Woman-owned businesses have had a lower rate of success compared to all other groups—by approximately 3-10 percentage points—in every year except one. For minority-owned companies, the success rate is better than for woman-owned companies, but still lags behind the “other” category (neither woman-owned nor minority-owned). During 2002-2003 the success rate of minority-owned businesses was considerably lower than that for woman-owned and all other businesses.

Success rates for Phase II awards are similar to those for Phase I (Figure 6-6). During the period 1995-2003, woman- and minority-owned businesses lagged behind all other business in their relative success at winning Phase II awards. For the whole period, the average success rate for woman-owned businesses was 0.44 (±0.12 std. dev.) percent compared 0.52 (± 0.6 std. dev.) percent for all other businesses. In 1996, the success rate for woman-owned businesses dipped below 30 percent; however, this rate has improved—in the early 2000s, it converged towards the rate for all other businesses. The same cannot be said for minority-owned businesses. Although minority-owned businesses had a higher average success rate, 0.43 (0.10 std. dev.), than woman-owned businesses during this period, in most of the years, the success rate for minority-owned businesses was below the “all others” group. In particular, the success rate for minority-owned companies in 2003 fell sharply—to approximately 27 percent—when the rate for all other businesses was over 50 percent.

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