Hispanic Business Growth Drives U.S. Economy, Outpaces National Average [REPORT]

Hispanics are starting and growing more businesses than all other ethnic groups, according to a study released today by Geoscape and published in partnership with the U.S. Hispanic Chamber of Commerce . 
 
The Hispanics in Business 2014 study details the impact of Hispanic businesses ownership, entrepreneurship and wealth. It contains data sourced from Geoscape, the U.S. Census, Nielsen Scarborough, the U.S. Department of Commerce and the Kauffman Index of Entrepreneurial Activity.
 
The study revealed that the total number of Hispanic-owned businesses is projected to reach 3.22 million in 2014, an increase of 43 percent since 2007. This total is more than twice the rate of all U.S. businesses, which increased 18 percent during the same period. The fastest-growing areas for Hispanic business activity are the East-South-Central and South Atlantic regions, comprised of Alabama, Mississippi, Kentucky and Tennessee and the Carolinas. This year, the combined annual revenue of Hispanic-owned businesses is projected to exceed $486 billion – an increase of $18 billion in the past year.
 
“Hispanics are a critical component of the U.S. Economy, due to their greater propensity for starting and growing businesses,” said Javier Palomarez, President & CEO of the U.S. Hispanic Chamber of Commerce. “Our Hispanic business population is a driving force in American business that will continue to grow in success, stature and influence. All Americans must recognize their importance to our country’s greater economic success.”
 
The study cites that the growth can be attributed to several key factors:
 
Digital Connectivity

The mobile, digital and connected economy allows for the easier promotion and dissemination of great ideas. Hispanics have shown to over-index on technology usage and connectivity <http://www.huffingtonpost.com/cesar-m-melgoza/want-to-reach-hispanics-mobile-phones_b_5678658.html> , allowing the latest tools such as mobile computing and smartphone telephony to work to their advantage.
 
“Due both to life stage and the social nature of the culture, there is an intrinsic link between Hispanics and technology, which will only grow stronger as Hispanics continue to contribute and benefit from America’s economic growth,” said Cesar Melgoza <http://www.huffingtonpost.com/cesar-m-melgoza/want-to-reach-hispanics-mobile-phones_b_5678658.html> , CEO and founder of Geoscape. “We designed this study to reveal the emerging impact of Hispanic businesses to overall American economic prosperity. As the population becomes greater in number, education and opportunity, Hispanics will continue to be an influential force in America’s business community.”
 
Lower Barriers to Entry

Hispanics are more likely than other ethnicities likely to create their own opportunities, rather than pursue opportunities in existing companies. This is especially prevalent in Hispanicity segments that are Spanish-dominant and associate more with Hispanic cultural preferences – likely resulting from necessity to find opportunities outside of corporate employers where they lack connections.

Easier Access to Capital

The success of significant Hispanic-founded businesses such as LatinWorks has opened the door for a greater access to resources and capital. As more Hispanic-owned businesses to succeed, others are given additional funding and investment opportunities from the private equity community. “We are firm believers that Hispanic businesses present us with a tremendous investment opportunity,” said Kevin Jordan, co-founder and Managing Partner at New Mainstream Capital <http://www.nms-capital.com/> , a private equity firm specializing in strategic investments in selected growth industries. “It’s always a wise investment strategy to allocate resources where the growth is – and the Hispanic business opportunity is among the most attractive in the marketplace.”
 
To download report CLICK HERE.