The Explosive Growth of Hispanic Entrepreneurs in the US
It is a common occurrence to hear about the phenomenal growth of the Hispanic consumer population in the United States. We hear it everyday on the news, but how has that growth impacted the business environment?According to research by Geocape: Among American minority groups, Hispanics are the most likely to start their own business.
From 2002 to 2007, the number of Hispanic-owned businesses grew from 1.57 million to more than 2.26 million, and their revenues grew to more than $350 billion. The Latino share of new entrepreneurs increased from 10.5% in 1996 to 19.5% in 2012
Nearly 30% of Hispanics who identify themselves as small business owners earn more than $100,000. Comparatively, 20% of all U.S.households earn more than $100,000 in annual household income.
One explanation for the fast growth: Recent research showing that immigrants are 27 percent more likely to start a business—and also more likely to perceive opportunity and less afraid of failure—than native-born Americans.
As a community, we are shifting our mindset and are beginning to realize that we make a difference. Whether is in politics, as the last presidential election clearly showed or in business. The Hispanic community is being reinvented. Thanks to many great new role models, a new generation being born with bigger aspirations and dreams that grew up with technology being part of their DNA, and new opportunities that may not have been available in the past that are now at our fingertips, the Hispanic community has embrace the entrepreneur spirit.
The reason of this growth in the Hispanic community however comes from different reasons. Among the most common motivators according to studies done by different organizations are:
Growth in specific communities: Which have led to better networking opportunities, as well as partnerships from members who complement each other. Lack of opportunities in Corporate America: Larger corporations have for the most part immigrants and Latino entrepreneurs because they believed they lack relevant experience or relevant education.
Desire for a better future: The Hispanic community has finally embraced the idea of the American dream in a whole new context. No longer are Hispanic households relying on the traditional food services or construction jobs. Most of the new entrepreneurs understand and embrace risk as a way to improve their lives.
Education: Government and independent agencies focus in the Latino community have given access to technology and tools to a whole new generation and they have certainly taken advantage of those opportunities to improve their lives.
In any way you look at it. The Hispanic population cannot be ignored. It is estimated that by 2050, Hispanics will represent over half of the nation’s workforce. As a Latino entrepreneur myself, I am excited to see the growth and new opportunities that these changes have created and I look forward to seeing the impact these will have in our society overall.
America needs to keep the promise and the dream of being the land of opportunity for us all and it is only through collaboration that we can continue to keep that dream alive.