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MSP 501 Minority-Owned Businesses: The Numbers Are Growing
They represent 8% of the honorees on the list, more than last year, but still less than the national average for all businesses.
Channel Futures Staff
October 5, 2023
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Today we celebrate the 39 minority-owned companies that made Channel Futures’ 2023 MSP 501 ranking of the top managed services providers in the world. That number represents 8% of the companies on the list and includes seven more than the 2022 survey. They range in size from 11 full-time employees (that company made the list’s top 10), to 600. Fourteen of the companies are woman-owned and six are owned by veterans. Almost all the owners describe their companies as managed services providers, while three were cloud services provider and one a consultant.
For a broader comparison, about 19% (1.1 million) of employer businesses in the U.S. in 2019 were minority-owned, according to the U.S. Census Bureau’s most recent numbers. About 21% (1.2 million) were woman-owned and about 6% (331,151) were veteran-owned. Broken down by technology workers, Black or African American workers make up 8% of tech employees (447,987) and 12% of the overall workforce, Hispanics or Latinos make up 8% (446,012) of tech and 17% of the overall workforce, and women make up 26% of tech and 49% overall, according to CompTIA’s State of the Tech Workforce 2023 report. Whites occupy 3.3 million tech jobs.
Whatever classification of managed services provider you run, make sure to apply for the 2024 MSP 501 ranking when the application becomes available early next year. As part of the application process and analysis, we ask channel partners of all business types to provide detailed information on their technology solutions and customer engagements. This data gives our research team the ability to develop benchmarks in a wide range of areas such as cloud, cybersecurity, growth rates and profitability, among others.
Key Data Points
Speaking of research, here are some key data points we collected from minority-owned businesses on this year’s MSP 501 survey, which covered company performance in 2022.
Average Revenue Growth Rate: 22%
Average Recurring Revenue: 26%
Approximate Average EBITDA Growth: 64%
9 listed their company size as an enterprise business with 50 or more employees, 25 as a midsize business with 15-49 employees, 6 as a small business with 1-14 employees.
Average Full-time Staff: 53 employees in 2022; 47 in 2021
Average Number of Dedicated Salespeople: 4
Average Number of Technical Employees Not in Sales: 25
Average Number of Technical Employees in Sales: 5
Average Number of Marketing Staff: 2
19 sell 3-year contracts, two sell 2-year contracts, 16 sell 1-year contracts, three sell month-to-month contracts
Average number of customer accounts under contract: 90 in 2022, 80 in 2021
Average number of customer end users under contract: 10,005 in ’22, 8394 in ‘21
Average number of end-user devices under contract: 11,362 in ’22, 9742 in ‘21
51% of their revenue was derived from managed services, 17% from recurring cloud revenue, 10% from professional services/project work, and 15% from hardware reselling
Average Monthly Rates: Per User, $128.63. Per Device or Endpoint, $78.75.
Average Hourly Rates: Technician Services, $146.23. Professional Services, $174.61. Specialty Services, $217.49.
See the slideshow above to see which of the 2023 MSP 501 are minority-owned.
We’ll have lists of the woman-owned and U.S. veteran-owned MSPs in the days ahead.
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