It makes sense that the growth in Latino-owned businesses in the United States has surpassed companies overall.
A study by the consulting firm Geoscape and the U.S. Hispanic Chamber of Commerce showed that between 2012 and 2015 the number of Latino-owned businesses had grown at an annual rate of 7.5 percent. That was 15 times as fast as the 0.5 percent growth rate of all U.S. companies.
The 4.07 million Hispanic-owned businesses in 2015 has increased 57 percent since 2007. The study came out as the nation celebrates Hispanic Heritage Month.
It’s not rocket science. The business growth follows the population growth, and According to the Pew Research Hispanic Trends Project the U.S. Hispanic population since 1970 grew nearly sixfold, rising from 9.1 million to 53 million by 2012.
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Latinos are 17 percent, or 55 million, of the 320 million U.S. population. The Hispanic population is expected to grow to 129 million, or 31 percent of the U.S. total by 2060.
The Geoscape/Hispanic chamber study says Hispanic businesses are mostly in service and trades industries.
“And revenue for Hispanic-owned firms is expected to reach $661 billion, a 28 percent increase since 2012,” the study notes. “Moreover, the average annualized percent increase in the number of Hispanic-owned firms has outpaced all U.S. firms for the last decade.”
The study points out that more than 40 percent of today’s entrepreneurs identify themselves as African American, Latino, Asian American or other people of color.
“All race and ethnic groups experienced an increase in new entrepreneurship between 2003 and 2014,” the study said. “The most recent data shows the Latino share of all new entrepreneurs rising to 22 percent, compared to 16 percent in 2003. The Asian share also rose substantially during this same period. The White share, on the other hand, declined 9 percent over the same period.”
Politicians seeking office — particularly those running for president in 2016 — should not ignore or continue to speak ill of Latinos or the changing demographics in the U.S. This is the future.