Between 2002 and 2007, Hispanics opened businesses—many owned by self-employed individuals—at a rate more than twice the national average of 18 percent.
Over the last two decades, the number of Hispanic entrepreneurs in America has more than tripled to more than two million. They are credited with helping to power the economy during the Great Recession, during which the number of Hispanic entrepreneurs grew by 71.5 percent, according to a report from the Partnership for a New American Economy and the Latino Donor Collaborative. Between 2002 and 2007, Hispanics opened businesses—many owned by self-employed individuals—at a rate more than twice the national average of 18 percent, Census Bureau data finds.
Last year, there were 3.1 million Hispanic-owned businesses in the United States. Together, they accounted for an estimated $486 billion in revenue, as reported by the U.S. Hispanic Chamber of Commerce.
But some American cities are more fertile ground for these businesses to grow. A new WalletHub report identifies the cities most hospitable to Hispanic entrepreneurs. WalletHub assessed the minority business climates within the 150 largest American cities by examining 19 key metrics in two basic categories, Hispanic purchasing power and business friendliness. Among them were share of businesses owned by Hispanics, five-year survival rate, and small business loans per total number of businesses.
The 10 best cities for Hispanic entrepreneurs, according to WalletHub, are:
1. Pembroke Pines, FL
2. Corpus Christi, TX
3. Laredo. TX
4. Gilbert Town, AZ
5. Rancho Cucamonga, CA
6. Jacksonville, FL
7. El Paso, TX
8. St. Petersburg, FL
9. Baton Rouge, LA
10. Chandler, AZ
The 10 worst cities for Hispanic Entrepreneurs are:
141. Minneapolis, MN
142. Winston-Salem, NC
143. Detroit, MI/Jersey City, NJ
145. Milwaukee, WI
146. Cleveland, OH
147. Newark, NJ
148. Philadelphia, PA
149. Worcester, MA
150. Providence, RI
Hispanics and Latinos comprise the largest ethnic minority in the U.S. and by 2050, could make up one-third of the country’s population. A recent Spectrem’s Millionaire Corner study of ethnic investors found among Hispanic respondents a heightened emphasis on hard work (96 percent) and education (88 percent) as primary wealth creation factors.
Compared with their Black and Asian counterparts, they were more likely to express concern about the prolonged economic downturn, the stormy political environment and government gridlock. Seventy percent said their chief financial concern was maintaining their financial position, compared with 61 percent of ethnic respondents to the study overall.
Almost half (49 percent compared with 32 percent of ethnic respondents overall) cited financing the education of their grandchildren as a primary financial concern. Tellingly, among those who list as a priority getting adequate help and advice that would allow them to reach their financial goals, the highest percentage (44 percent) was Hispanic.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.