In 2017, 4.4 million Hispanic-owned firms will contribute $709 Billion to the U.S. economy.
There will be 4.37 million Hispanic-owned businesses projected this year – more than double the growth rate of all U.S. firms, according to a study released today by Geoscape, a leading provider of business intelligence technology, data and analytics.
“They create American jobs, maintain our leadership in global markets, and contribute toward the mutual prosperity that makes America’s economy the greatest in the world,” states the “Hispanics in Business 2017” study.
Published in partnership with the U.S. Hispanic Chamber of Commerce, the study details the growth of Hispanic business ownership, high levels of entrepreneurship and contributions to the U.S. economy. The results were formally unveiled at The USHCC National Convention, taking place this week in Dallas, Texas.
Hispanic-owned businesses have grown 31.6% since 2012, more than double the growth rate of all businesses in the U.S (13.8%). During this 5 year period, the South Atlantic Census Division has experienced explosive growth in the number of Hispanic-owned businesses, surpassing the Pacific Census division. Specifically from 2012 to 2017, the South Atlantic division grew 42.8% compared to the Pacific Census Division at 27.3%.
HIGH ENTREPRENEURSHIP
The Hispanic share of new entrepreneurs represented 24% of all firms, compared to 10% a decade ago – a 140% increase. Hispanics are 1.5 times more likely than the general population to start a business, according to the Kauffman Index of Entrepreneurial Activity.
While men owned over 56% of Hispanic businesses in 2012, women now drive more of the growth. Between 2007 and 2012, the number of female Hispanic-owned businesses grew an incredible 87%, from 800,000 to 1.5 million firms. This is the largest increase in female business ownership of any race or ethnic group.
ECONOMIC CONTRIBUTIONS
Sales from Hispanic-owned businesses contribute $709 billion to the U.S. economy, an increase of 32% since 2012 and twice the total in 2007 ($351billion). Between 2012 and 2017, 27.4% of the growth in all businesses in the U.S. can be attributed to Hispanic-owned businesses.
“Throughout the United States, Hispanic entrepreneurs play a crucial role in supporting the growth of local communities,” said Javier Palomarez, president & CEO of the U.S. Hispanic Chamber of Commerce. “They create American jobs, maintain our leadership in global markets, and contribute toward the mutual prosperity that makes America’s economy the greatest in the world.”
To view the study in its entirety, visit www.geoscape.com/hbr2017.
