Rep. Carolyn Maloney (D-NY), Vice Chair of the U.S. Congress Joint Economic Committee (JEC), and Rep. Joaquin Castro (D-TX), Chair of the Congressional Hispanic Caucus (CHC), released a new report this week on the “Economic State of the Latino Community in America.” The study was conducted in celebration of Hispanic Heritage Month, which began September 15. Almost 60 million Latinos live in the United States, contributing $2.3 trillion in economic activity.
According to the Census Bureau Survey of Business Owners, there were 3.3 million Hispanic-owned businesses nationwide in 2012. That number is projected to be over four million in 2017, with these mighty entrepreneurs contributing more than $700 billion to the American economy annually. The report states that almost one in four new businesses are Latino-owned, one quarter of Latino-owned businesses are also woman-owned, and that women are more likely to be running microbusinesses.
As with AEO’s 2017 report “The Tapestry of Black owned Business in America: Untapped Opportunities for Success,” which took a deeper look into the current state of Black business in America, entrepreneurship was highlighted as a powerful vehicle for increasing wealth. The new report found that most Latino entrepreneurs with annual gross revenues of $1 million+ came from lower and middle income households. Latino business owners also report limitations in access to financial capital, and more difficulties with paying expenses and credit availability than their white counterparts, despite comparable revenue growth/profitability.
In 2016, the median net worth of Hispanic households was only one eighth of the net worth of white households. Estimates show that by 2060, approximately one in four people living in the United States will be of Latino or Hispanic heritage. Imagine the impact on the U.S. economy if Latino and Hispanic business owners were supported with the right tools (access to credit, trusted guidance and mentorship, technical assistance, and more) to eliminate that wealth gap.
To read the full report, please visit: