MIAMI & CHICAGO--(EON: Enhanced Online News)--Geoscape, a leading provider of business intelligence technology, data and analytics, announced the results of a new study on Hispanic business ownership, entrepreneurship along with their wealth and philanthropy.
“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 reveals that Hispanic businesses are a fast-growing and critical part of the U.S. economy. During the last decade, the number of Hispanic-owned businesses doubled, growing from 1.5 million in 2002 to a projected 3.1 million in 2013. This year, the projected combined annual revenue of these businesses is over $468 billion – an increase of over $100 billion in the past six years.
The Hispanics in Business Study contains data sourced from Geoscape, the U.S. Census, Scarborough, the U.S. Department of Commerce and the Kauffman Index of Entrepreneurial Activity. Supported by the U.S. Hispanic Chamber of Commerce (USHCC), results will be formally unveiled at The USHCC National Convention, taking place next week in Chicago.
Other key findings include:
- Hispanic Americans are more likely to be entrepreneurs. The Latino share of American entrepreneurs grew from 10.5 percent in 1996 to 19.5 percent in 2012. During the past ten years, Hispanic Americans have been starting and growing new businesses at twice the rate of the general population.
- Highest growth comes from the Southeast. The study projects that Hispanic businesses in the South Atlantic region, comprised of Florida, Georgia, South Carolina, North Carolina, Virginia, Maryland and West Virginia, will surpass the total on the West Coast this year. Hispanic-owned businesses in this region grew by 52 percent since 2007, compared to 32 percent on the West Coast.
- Hispanic businesses differ in language and culture. Among Hispanic business owners, the largest percentage (57 percent) identified themselves as matching Geoscape Hispanicity™ segments HA2 through HA4, being bi-lingual and bi-cultural; yet the second-highest segment (26 percent) prefer to speak Spanish and associate more with Hispanic cultural preferences. The findings suggest the diversity and wide range of acculturation levels that exist among Hispanic business owners in the U.S.
- Business Ownership is a key indicator of Hispanic wealth. 56 percent of Hispanic business owners earn more than $50,000 of household income, compared to 40 percent the total Hispanic population. Hispanic business owners are also 86 percent more likely to earn between $100,000 and $150,000; three times more likely to earn over $150,000 in household income, compared to the total Hispanic population.
- Business ownership increases philanthropy. 9 percent of Hispanic business owners have contributed to an arts or cultural organization – twice the rate of the Hispanic adult population in the U.S.
“Hispanic entrepreneurs are America’s business future,” said Javier Palomarez, President and CEO of the USHCC. “While we are proud to advocate on behalf of business owners who happen to be of Hispanic descent, we never forget that we are first and foremost American businesses. Every tax bill we pay, every job we create, every product we manufacture and every service we provide goes to benefit our nation’s economy.”
“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 Cesar 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.”
To view the study in its entirety, visit www.geoscape.com/HBR
Geoscape, American Marketscape DataStream, Series 2013; Scarborough Research, USA+ Study Release 2, 2012; Kauffman Index of Entrepreneurial Activity, Robert Fairlie, 2012; U.S. Census Bureau, Survey of Business Owners, 2007; U.S. Census Bureau, Survey of Business Owners, 2002; U.S. Census Bureau, Economic Census Summary, 2007; U.S. Census Bureau, Economic Census Summary, 2002; U.S. Census Bureau, Non-employer Statistics, 2007; U.S. Census Bureau, Non-employer Statistics, 2002; U.S. Census Bureau,, 2011 County Business Patterns, April 2013; U.S. Department of Commerce, Bureau of Economic Analysis, Gross Domestic Product, Comprehensive Revision, Q2-2013
Geoscape provides automated intelligence systems, unique data products and analytic services for companies seeking to tap into the growth of new mainstream consumers in the U.S., Canada and Europe. The online Geoscape Intelligence System (GIS), the DirecTarget® database enrichment system and a variety of geo-demographic, consumer, business and media databases enable actionable insights that lead our clients to gain significant business advantages. Geoscape is a privately held company owned by NMS Capital and Cesar M Melgoza, Founder & CEO, and is headquartered in Miami.
About the USHCC
Founded in 1979, the USHCC actively promotes the economic growth and development of Hispanic entrepreneurs and represents the interests of over 3 million Hispanic owned businesses across the United States that contribute in excess of $465 billion to the American economy each year. It also serves as the umbrella organization for more than 200 local Hispanic chambers and business associations in the United States and Puerto Rico. For more information, visit www.USHCC.com.