Latino Entrepreneurs will be thrilled to hear that the average annual revenue for businesses owned by this population increased by 26.5 percent between 2017 and 2018. Biz2Credit conducted a study of more than 28,000 businesses and attributes this growth to the strength of today’s economy. When Latino entrepreneurs are successful it encourages others to follow in their path. This helps to explain the jump in applications for small business loans over the past year within the Latino community. Of these loans, 27 percent were approved, which is approximately the same percentage of those loans approved for non-Latino-owned organizations.
Why This Growth?
Many believe the growth of Latino-owned businesses is due to the strong economy. When a business owner feels confident, he or she is more willing to invest funds in their venture. Furthermore, lenders are now taking note of this population and increasing marketing to Latinos. They employ individuals who speak Spanish to help ease communication and more lenders are reaching out to Latinos to offer their services.
Where Latinos Do Business
Sixty percent of loan applications submitted by Latinos were seen in California, Florida, New Jersey, New York, and Texas. More than 40 percent of these applications were in California and Texas alone. Many Latinos work in the accommodation and food services industry, while applications were also put in by other services, construction, retail trade, and transportation and warehousing entrepreneurs. With the Hispanic population expected to double by 2060, lenders and consumers alike need to take note of these individuals and their hard work.
Contributions to the Economy
According to the United States Latino Chamber of Commerce, the roughly 4.2 million Latino-owned companies in the country contribute more than $668 billion to the economy each year. The growth rate of these firms is significantly higher than the national average also, double or triple that of the national average. What may surprise many is three-quarters of these businesses are not located in Latino neighborhoods and their customers tend to be non-Latino.
Every person in America needs to be aware of the contributions of Latino entrepreneurs. They are a vital part of America’s economy and this trend is expected to continue. Furthermore, Latinos looking to open their own business should consider doing so. Those who have forged the path are having great success and this benefits all.