Americanizados and Hispanos Lead the Growth of Hispanic-Owned Businesses and Self-Employment
Latinos are introduced to an entrepreneurial spirit and an enterprising nature during childhood. Good deeds and chores done well are rewarded with coins, or the coveted $1 bill. And summer time means earning "spending money," garnered by spending hours mowing lawns, selling lemonade, peddling candy and cookies, or unloading once-loved toys at garage sales.
The innocent desire to earn pocket change matures, and those children later become entrepreneurs who developed much-needed Hispanic businesses, helping to spur economic growth in U.S. markets.
Data shows that from 2002 to 2007, Hispanic-owned businesses grew from 1.57 million to 2.26 million, and their revenue increased by $350 billion. Also, ownership has grown by more than 40 percent since 2007, and the number of new Latino entrepreneurs nearly doubled between 1996 and 2012 (10.5 percent to 19.5 percent).
Latino entrepreneurs now claim a fifth of the market. And the 3.1 million Hispanic-owned businesses will contribute at least $468 billion to the U.S. economy this year alone.
Nearly 56 percent of Hispanic business owners earn greater than $50,000 annually (compared to 40 percent of all U.S. Hispanic households) and nearly 30 percent of Hispanics who identify as small business owners make more than $100,000 (compared to 20 percent of all U.S. households). Entrepreneurship increases the likeliness of household wealth for Hispanic earning between $25K-49K, and those earning between $75K and >$150K, as much as threefold in some cases.
The number of Hispanic-owned businesses increasse at 2-3 times the rate of general U.S. firms, and most significantly in the East South Central division (Mississippi, Alabama, Tennessee, Kentucky), the West South Central division (Texas, Oklahoma, Louisiana, Arkansas) and most impressively in the South Atlantic division (Florida, Georgia, South Carolina, North Carolina, Virginia, Maryland and West Virginia).
More than 57 percent of Hispanic business owners nationwide are bilingual and bicultural, and they are able to effectively connect with both the Hispanic and mainstream segments in Spanish and in English.
Americanized Hispanics or Americanizados lead as business owners (33 percent) and Spanish-speaking settlers or Hispanos lead in self-employment (33 percent). While bicultural, modern Latinas or Nueva Latinas, 29 percent of the overall Hispanic population, only claim 12 percent of both Hispanic-owned businesses and self-employment, according to "Hispanic Businesses & Entrepreneurs Drive Growth in the New Economy" developed by Geoscape and The United States Hispanic Chamber of Commerce (USHCC).
"Much has been said and published about the vitality of the U.S. Hispanic/Latino consumer and its role amid the future of America's economy. Conspicuously absent from this discussion is the growth and impact of Hispanic entrepreneurs and the businesses they create," said Cesar Melgoza, Founder and CEO of Geoscape. "As America continues to evolve towards a truly multicultural nation, the role of Hispanic entrepreneurs will become increasingly vital to maintaining the American standard of living and our ongoing innovation. "
The American government spends at least $1 trillion on accommodations and products to ensure that minority businesses can provide professional services (accounting professions, legal, architectural and engineering) and serve goods to their own community and the general public. The Minority Business Development Agency (MBDA) works to ensure that companies connect with minority suppliers, enabling companies to earn government contracts since they've opted to diversify their choice of contractor. MBDA additionally invites Latino businesses to become more involved in international markets, encouraging Hispanic-owned businesses by connecting them with providers of capital, such as banks, venture capitalists, crowd-funding opportunities and angel investors.
Advocates of minority-owned and Latino owned businesses understand that their support will not only encourage the household wealth of Hispanics, but the American economy. Hispanic-owned firms create jobs, products and revenue, and they expand the economic impact of the Hispanic business community. Their insights and efforts also stimulate the global economy. These firms are also more likely to embrace philanthropic causes and donate to charitable organizations, particularly faith-based organizations.