Hispanic-Owned Businesses are Booming, and Won’t Settle Down Anytime Soon
According to the U.S. Census Bureau, the number of Hispanic businesses has more than doubled since 2002, growing from 1.6 million to a whopping 3.3 million.
This total represents 13.5% of all businesses in the nation, as reported on Media Life Magazine.
Overall, this trend is due to many different factors. Recently, the Partnership for a New American Economy and the Latino Donor Collaborative has found that Mexican immigrants are responsible for driving this trend. They found that the number of self-employed Mexican immigrants quintupled between 1990 and 2012 and that now, one in every 10 immigrants starts their own business.
Experts behind the study believe this has to do with a culturally strong work ethic, increasing eagerness to leave behind a legacy, and less of a language barrier. In fact, 57% of Hispanic business owners are bilingual, according to a report by the U.S. Hispanic Chamber of Commerce and Geoscape.
However, 25% of the immigrants polled immigrated to the U.S. more than a decade earlier and prefer to only communicate in Spanish.
Additionally, these enterprises use smart business practices. The Minority Business Development Agency found that the economic recession had less of an impact on Hispanic business owners than any other demographic.
Instead of causing the businesses to go under, the recession somehow caused Hispanic-owned businesses across the nation to grow. All in all, between 2007 and 2016, the number of business increased by 1 million.
Not only that, but Hispanic businesses are efficient. The average business operating expense is $68,540, a full $6,000 less than non-Latino companies.
These small businesses are also growing their technological capacity. According to Forbes, 80% of small businesses will soon rely on cloud computing for its efficiency, accessibility, and cost-effectiveness.
Even still, because of the seasonal nature of the businesses — think landscaping, construction, or snow removal– lenders often see Hispanic businesses as high risk.
But despite these hurdles, it is no secret that business is booming.