Hispanic-owned businesses across the United States are growing more than twice the national average since 2007, according to a new report.
The Hispanics in Business 2014 study by Geoscape, says Hispanic-owned businesses will grow to 3.22 million by the end of 2014 and exceed $486 billion in annual revenue. The number of Hispanic businesses has increased 43 percent since 2007, the rate of all U.S. businesses increased 18 percent during the same period, and revenue that year was $358 billion.
The growth is significant, the report’s authors say, because it shows that Hispanics are increasingly becoming a major source for employing America’s workers and thereby becoming even more pivotal to the health of the U.S. economy.
“The Non-Hispanic population is older, retiring disproportionate to younger Latinos,” said Cesar Melgoza, CEO and founder of Geoscape. “So as we baby boomers age and continue to retire then greater reliance of Latino businesses will be a fact of life. So as we move forward it becomes everyone’s business that Latinos do well.”
The study suggests the growth is based on, among other things, better digital connectivity, the fact that Latinos use their smart-phones more than anyone else, allowing for “easier promotion and dissemination of great ideas.” Lower barriers to entry and easier access to capital are also credited l for helping foster Latino business growth. Though, still a major issue for entrepreneours, Melgoza says banks like Wells Fargo and Bank of America are doing a better job giving lines of credit to Latino business entreprenours.
Hispanics are more likely than any other ethnicity to start a business, and that spark for entrepreneurship, may actually be an unintended positive consequence from a lack of opportunities in Corporate America.
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