A study released this week by Geoscape, a provider of business intelligence technology, data and analytics, projects that there will be 4.37 million Hispanic-owned businesses this year—more than double the growth rate of all U.S. firms.
Published in partnership with the United States Hispanic Chamber of Commerce (USHCC), the Hispanics in Business 2017 study details the growth of Hispanic business ownership, high levels of entrepreneurship and contributions to the U.S. economy. The results were unveiled at The USHCC National Convention in Dallas, Texas.
Consistent and strong growth
Hispanic-owned businesses have grown 31.6 percent since 2012, more than double the growth rate of all businesses in the U.S (13.8 percent). During this five-year period, the South Atlantic Census division has experienced explosive growth in the number of Hispanic-owned businesses, surpassing the Pacific Census division, says the report. Specifically from 2012 to 2017, the South Atlantic division grew 42.8 percent compared to the Pacific Census division at 27.3 percent.
High levels of entrepreneurship
The Hispanic share of new entrepreneurs represented 24 percent of all firms, compared to 10 percent a decade ago—a 140 percent increase. Hispanics are 1.5 times more likely than the general population to start a business, according to the Kauffman Index of Entrepreneurial Activity.
Hispanic-owned businesses by gender and age
While men owned more than 56 percent of Hispanic businesses in 2012, women now drive more of the growth. Between 2007 and 2012, the number of female Hispanic-owned businesses grew 87 percent, from 800,000 to 1.5 million firms. This is the largest increase in female business ownership of any race or ethnic group.
Greater economic contributions
Sales from Hispanic-owned businesses contribute $709 billion to the U.S. economy, an increase of 32 percent since 2012 and twice the total in 2007 ($351 billion). Between 2012 and 2017, 27.4 percent of the growth in all businesses in the U.S. can be attributed to Hispanic-owned businesses.
“Throughout the United States, Hispanic entrepreneurs play a crucial role in supporting the growth of local communities,” said Javier Palomarez, president and CEO of the USHCC. “They create American jobs, maintain our leadership in global markets, and contribute toward the mutual prosperity that makes America’s economy the greatest in the world.”
“We conduct this study each year to illustrate that Hispanic-owned businesses are a strategic growth opportunity,” said Cesar M. Melgoza, CEO and founder of Geoscape. “They are a key component of our nation’s economic foundation and will continue to create jobs and wealth. It is everyone’s business to support the Hispanic entrepreneur, as their success is increasingly critical to the nation’s long-term wellbeing.”
The USHCC promotes the economic growth, development and interests of Hispanic-owned businesses; advocates on behalf of 260 American corporations; and serves as the umbrella organization for more than 200 local chambers and business associations nationwide.