How many Somali-owned businesses operate in Minnesota and which industries dominate?
This fact-check may be outdated. Consider refreshing it to get the most current information.
Executive summary
Available reporting does not provide a single, up‑to‑date count of Somali‑owned businesses in Minnesota; older estimates show "hundreds" and one 2006 figure said Somalis owned about 600 businesses in the state [1]. Multiple local outlets and studies say Somali entrepreneurs predominate in small retail, restaurants, food manufacturing and home health care, and that Somali women run many retail and mall businesses in Minneapolis’s Somali commercial corridors [2] [3] [4].
1. The baseline: no definitive census of Somali‑owned businesses
There is no single authoritative, current tally in the available reporting. Historic accounts and community surveys note "hundreds" of Somali‑run firms and a 2006 estimate that Somalis owned about 600 businesses in Minnesota, but contemporary pieces describe the number qualitatively rather than providing a fresh statewide total [1] [5]. Local journalists and researchers instead document concentration by neighborhood and by industry rather than a precise headcount [5] [2].
2. Where Somali businesses cluster: Cedar‑Riverside, Karmel Mall and beyond
Reporting repeatedly points to concentrated commercial corridors — notably Cedar‑Riverside and East African shopping centers such as Karmel Mall — where scores of Somali vendors and storefronts operate, including clothing boutiques, salons, grocery and specialty food stalls [4] [6]. These enclaves function as economic and social hubs: mall owners and shopkeepers report hundreds of vendors lining narrow halls and community members say many businesses cater primarily to Somali customers [4] [6].
3. Dominant industries: retail, restaurants, food processing and home health care
Multiple sources identify a pattern: Somali entrepreneurs run numerous shops and restaurants and are heavily represented in food manufacturing and home health care. The Minnesota Chamber Foundation and local reporting note concentration in home health care and animal food processing — with Somalis making up about 11% of animal food processing workers in one cited analysis — and community businesses include eateries, salons and small retail [3] [2] [7].
4. Women entrepreneurs and mall economies
Field reporting highlights that Somali women run a large share of businesses inside Somali‑oriented malls and shopping centers. Coverage of Karmel Mall and Cedar‑Riverside emphasizes female ownership of clothing stores and salons and notes how those businesses anchor neighborhood commerce and were hit hard when customers stayed home amid immigration enforcement fears [4] [6].
5. Economic contributions and limits in the available data
Local outlets estimate Somali Minnesotans generate substantial income and tax revenue — one report says Somali Minnesotans generate at least $500 million in income annually and pay about $67 million in state and local taxes — yet these figures address the community’s economy broadly rather than counting business owners specifically [3]. The Federal Reserve and state researchers have documented Somali entrepreneurship revitalizing storefronts, but they also find many Somali households remain economically vulnerable, signaling mixed socioeconomic outcomes [8] [9].
6. Political context and reporting incentives that shape coverage
Recent national attention — tied to fraud investigations and immigration enforcement — has amplified reporting about Somali businesses, sometimes focusing on a subset of fraud cases that involved Somali‑linked firms; that emphasis can skew perceptions and spur politically charged narratives [10] [11]. Other outlets and advocacy voices stress the community’s civic and economic contributions, indicating competing frames in the coverage [8] [5].
7. What the sources don’t say — and what that matters for policy
Available reporting does not produce a contemporary, state‑level, verifiable count of Somali‑owned businesses or an industry‑by‑industry breakdown with hard numbers; instead it relies on surveys, neighborhood tallies and qualitative reporting [1] [12]. That absence limits policymakers’ ability to craft targeted business assistance, measure fraud risk by sector, or quantify the economic footprint of Somali entrepreneurship precisely [2].
8. Practical next steps for anyone seeking a precise count
To obtain a defensible current number, researchers should combine state business‑registry data, Small Business Development Center outreach records and localized surveys (methods referenced in studies of Somali entrepreneurs), and disaggregate by NAICS industry codes to measure concentration in food manufacturing, home health care, retail and hospitality — an approach reflected in prior academic and municipal work but not present as a completed dataset in these sources [12] [13].
Limitations: this analysis uses only the supplied reporting; contemporaneous government registries or a purpose‑built survey may provide the precise counts reporters have not published (not found in current reporting).