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Hispanic owned businesses grow by a surprising double digit level

October 3, 2010

Houston– According to the recently released Census report Hispanic owned businesses in the nation increased by more than double the national rate.  Between 2002 and 2007 Hispanic entrepreneurs started 15, 038 new businesses topping out at 44,206.  The ambition to start and own a viable business is much higher since these figures only factor businesses with receipts of at least one million dollars.

The cities with the largest number of Hispanic owned businesses in descending order are El Paso, San Antonio, Houston, Albuquerque and Los Angeles.

Evening view of River Walk

Having lived in both El Paso, San Antonio,  and currently in Houston, it is easy to explain why this is the case.  El Paso is an oasis in the Chihuahua dessert that is thousands of years old. Legend has it that  the first Spanish explorer Juan de Oñate celebrated the fist thanksgiving in 1508, decades before Plymouth Rock. El Paso has a 59.8 percent of very diverse Hispanic owned businesses. The city grew around Fort Bliss and the downtown saloons in the wild wild west.

Everyone remembers The Alamo and San Antonio as the symbol of Texas’s independence from Mexico. But in our modern world most tourists remember San Antonio for it’s bustling river walk and the shopping in it’s historic downtown. Retail trade is San Antonio’s second source of economic revenue next to the Military. Many of these businesses can trace their origins back to when the village San Antonio de Bexar Presidio, was Mexico.

Houston, the nation’s fourth largest city is not as old as the others. But it has several generations of Hispanic owned businesses. According to Rice University’s sociology professor Stephen Klineberg, Houston has attracted a lot of immigrants due to it’s petrochemical and construction boom. Many of these immigrants have assimilated into the culture and now make up the majority demographic.  Although immigration has recently been negative in the political narrative, according to Mr. Klineberg immigration has been a net positive effect for Houston.  His prediction echos what other demographers prognosticate that Hispanics will be the majority in the year 2050.

The Hispanic entrepreneurial spirit can be seen firsthand by visiting any of the large flea markets in any large city in the country.  Houston has fueled and supplied that demand by building these markets in the predominantly Hispanic areas.  Many of these markets have been the incubator of businesses that have  grown to brick and mortar merchants.

According to the census report the top industries that Hispanics own business in are:

  • Construction
  • Repair and maintenance
  • Administrative and support
  • Health care and social assistance
  • Transportation and warehousing

While these industries represent the top billing, in my experience  the long tail has every market segment including; small grocery stores, carnicerias, financial services, insurance, retail, and others.

To put this in perspective Hispanic owned businesses in 2007 generated receipts of 274.5 billion.  But the Hispanic spending was forecast to reach one trillion dollars in 2010.  If Hispanics in the US were a country they would be larger in numbers and in GDP than Canada.

If you are a B2B business perhaps you have discovered that Hispanics are not an easy nut to crack but once you do and prove yourself, you have loyal customers.

In my next story I will give you the strategies for doing business with Hispanics since they could be  an untapped part of your marketing mix.

2 Comments leave one →
  1. October 6, 2010 1:32 am

    A very interesting blog about Hispanic businesses.

    • October 6, 2010 2:45 am

      We have some very talented experienced advertising people that are behind this blog. Thanks for stopping by

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