A study by business intelligence technology provider Geoscape and the U.S Hispanic Chamber of Commerce revealed that the number of Hispanic business owners in the United States has doubled in the paste decade, growing from 1.5 million in 2002 to an expected 3.1 million by the end of this year. In total, the projected combined annual revenue of these businesses is more than $468 billion, which represents an increase of more than $100 billion in the past six years.
The research revealed that the Latino share of American entrepreneurs grew from 10.5 percent in 1996 to 19.5 percent in 2012. According to the U.S. Census Bureau, Hispanics represented 17 percent of the total U.S. population in 2012.
"Much has been said about the vitality of the Hispanic consumer, but absent from that discussion is the economic growth and impact of Hispanic entrepreneurs and business owners," said César Melgoza, founder and CEO of Geoscape. "As America continues to evolve into a truly multicultural nation, the role of Hispanic businesses will become increasingly vital to maintaining the American standard of living and our country's ongoing innovation."
The study found that while Hispanic-owned businesses have long populated the West Coast, they are becoming increasingly more common in other parts of the country as well. The researchers project that Hispanic businesses in the South Atlantic region — which comprises Florida, Georgia, South Carolina, North Carolina, Virginia, Maryland and West Virginia — will surpass the total on the West Coast this year.
Among Hispanic business owners, the largest percentage — nearly 60 percent — identified themselves as being bilingual and bicultural, with 26 percent preferring to speak Spanish and associate more with Hispanic cultural preferences. Researchers said the findings suggest the diversity and wide range of acculturation levels that exist among Hispanic business owners in the U.S.
The research discovered that compared to the rest of the Hispanic population, business owners are more likely to earn more money and contribute more to society. Specifically, Hispanic business owners are three times more likely than the total Hispanic population to have a household income of more than $150,000.
Additionally, 9 percent of Hispanic business owners have contributed to an arts or cultural organization — twice the percentage of the Hispanic adult population in the U.S.
The study was based on data sourced from Geoscape, the U.S. Census Scarborough, the U.S. Department of Commerce and the Kauffman Index of Entrepreneurial Activity.
Originally published on BusinessNewsDaily.