Over the last decade, Hispanic-owned businesses have become one of the fastest-growing businesses in the US, small and medium business enterprises. By 2023, there will be about 4.7 million Hispanic business owners nationwide, with the industry generating over $800 billion in revenue annually, a report according to the US Hispanic Chamber of Commerce. And by 2030, it is predicted that 1 out of 5 workers will be Hispanic business owners.
Yet, despite the growing improvement, Hispanic entrepreneurs still need to be financially balanced. Likewise, in its annual reports, Biz2Credit (a Latino-Owned Business Study) revealed that Latino-owned businesses have minimal average annual revenues, which are about 8% lower than non-Latino businesses. Moreover, the earnings in the business could be more impressive as it stands 19% lower.
Business with Eyes for the Future
Notwithstanding, in the last decade, Hispanic-owned businesses have created new businesses much faster than any other groups. The report also states that Hispanic-owned companies made average annual revenues of $202,327 over the last year, while non-Hispanic-owned businesses made average annual revenues of $206,855 in the same period.
With solid indications, Latino business owners are likely focusing on building for the long term. Also, their primary goal as influential entrepreneurs is likely to run a business that can benefit them for an extended period of time. For now, the swift rate of Hispanic-owned businesses, lower expenses, and revenues are indicators of start-up growth.
How many Businesses are Owned by Hispanics?
Hispanic business owners employ over 1 million workers, with over $100 billion in annual payroll. Between 2012 and 2017, the number of Hispanic-owned businesses employing at least one employee other than the owner recorded an increase of 14%. That’s two times the national business growth rate.
In the decade before the COVID-19 pandemic, the rate of Hispanic business owners recorded a 34% increase, which is relatively better than the 1% increase of non-Hispanic business owners. Between 2012 and 2019, the number of Hispanic-owned businesses increased by over 40%, an indication that Hispanic-owned businesses are doing well.
Federal Contracting Programs
This Business Development program offers a broad scope of assistance to firms owned and controlled (at least 51%) by economically and socially disadvantaged individuals. The HUBZone program has improved small business growth in highly underutilized business zones by awarding up to 3% of annual federal contracts to HUBZone-certified companies.
The Women-owned Small Business (WOSB) Federal Contracting program is designed to provide access to federal contracting opportunities for economically disadvantaged women-owned small businesses (EDWOSBs) and WOSBs.
Top Five States for Hispanic Business Owners.
- New Mexico
Texas is known for its support of Hispanic-owned businesses. The state supports over 11.7% of Hispanic-owned businesses and employs 619,270 workers. The rate at which the business is flourishing in Texas has made the state number one on the list.
New Mexico comes second, having 15.3% Hispanic business owners and 55 671 workers. Nevada and Arizona are third and fourth, with 6.2% and 7.0% Hispanic-owned businesses, respectively. At the same time, California boasts 9.3% and over 673 550 Hispanic workers.
Invest in the Fastest Growing Businesses
Over 5 million Hispanic business owners in the US contribute more than $800 billion annually to the American economy. With a continuous incline in this business, it’s wise to join the trend. However, don’t just join; work to become successful. At the Florida Hispanic American Chamber of Commerce, we will help you become one of the country’s most successful Hispanic business owners. You can contact us today to begin your journey!