Business Is Booming for Nation’s Hispanic-Owned Companies, Says New Report
A new study shows that businesses owned by Hispanics in the United States have been growing at more than twice the national average since 2007.
According to the Hispanics in Business study for 2014, conducted by Geoscape, Hispanic-owned businesses are projected to hit 3.22 million by the end of the year, generating at total of $486 billion in annual revenue. That’s a 43% increase since 2007, when revenues were at $358 billion, compared with the 18% increase for all U.S. businesses.
As Hispanics become a major source of employment in the United States, the study’s authors say this signals a shift inthe U.S. economy.
“As we baby boomers age and continue to retire then greater reliance of Latino businesses will be a fact of life,” said Cesar Melgoza, CEO and founder of Geoscape. “So as we move forward it becomes everyone’s business that Latinos do well.”
The growth is due, in part, to the increased digital connectivity of Latinos, especially among those who are smartphone users.
Melgoza also pointed out that Hispanics are more likely than any other ethnicity to start a business, especially if they may have been shut out from corporate opportunities. While raising capital is still an issue for many businesses, especially those owned by Hispanics, he said that Wells Fargo and Bank of America have improved when it comes to giving lines of credit to these entrepreneurs.
The other challenge is to ensure that these businesses have the ability to grow, said Melgoza, in order to secure employment for all future generations.
Finding the right location is yet another challenge for these businesses. Business relocation services, however, can even travel across state lines to make the process easier.
So just where might some of these businesses end up? Some point to Utah as a potential location for new growth for these Latino-owned businesses, said U.S. Hispanic Chamber of Commerce President and CEO Javier Palomarez.
Although only 0.7% of the country’s 54 million Latinos live in Utah, the state is seeing a greater increase in the number of Hispanics living there. They make up approximately 13% of the state’s 2.9 million residents.
The state was even chosen as the location for 2014 national convention for the U.S. Hispanic Chamber of Commerce, which represents the 3.2 million Hispanic-owned businesses in the country and also advocates for over 230 corporations.
The state’s popularity with Hispanic residents is no fluke, either. Because much of Utah’s population belongs to the Mormon faith, which requires its members to travel abroad for mission work, Ali Noorani, executive director of the National Immigration Forum, said they may be more open to people from other countries and cultures.