ECONOMIC DRIVERS/ENTREPRENEURSHIP

• There are nearly 5 million Hispanic-owned businesses that contribute over $800 billion to the American economy every year.
  • USHCC (2021)
• Latinos are starting businesses at a faster rate than the national average across several industries, growing 44% over the last 10 years compared to just 4% for all other small businesses.
  • Latino Business Action Network (2021)
• During 2019-2022, the median growth rate in revenue for Latino businesses was 25% vs. 9% for white-owned businesses.
  • Latino Business Action Network (2022)
• In 2020, Hispanic businesses employed about 2.9 million workers and made up 6.5% of all businesses in the United States.
  • United States Census Bureau (2023)
• The U.S. Latino cohort has accounted for nearly 80% of the net new additions to our labor force during the past decade, while also accounting for 52% of all net new employer businesses, making it our country’s most prolific entrepreneurial cohort.
  • Latino Donor Collaborative (2022)
• The over $7 trillion in revenue generated by Fortune 500 companies founded by immigrants or children of immigrants is greater than the GDP of every country in the world outside the United States, except China.
  • New American Economy (2022)
• The U.S. Latino/a population is expanding approximately six times faster than non-Latinos and we have accounted for nearly 80% of all net new businesses created during the last decade. 
  • USHCC Census Report (2020)
• The Afro-Latino community would rank within the top 25 economies in the world if it were a single country. 
  • Al Dia Business/WAAH (2021)
• More than 12% of all Hispanic immigrant workers worked for their businesses, making them 30.6% more likely to have their businesses than the overall U.S. population.
  • New American Economy Research Fund (2021)
• Latinos’ contribution to GDP is a key driving force of the U.S. economy – growing 57% faster than the U.S. GDP as a whole.
  • LDC U.S. (2021)
• If U.S. Latinos were a standalone country, they would account for the 7th largest GDP in the world, tied with France.
  • LDC U.S. (2021)
• The total economic output (or GDP) of Latinos in the United States was $2.8 trillion in 2020, up from $2.1 trillion in 2015, and $1.7 trillion in 2010.
  • California Lutheran University (2022)
• Over the past 2 years, the growth of real Latino GDP averaged 5.63%, double the rate of the broader U.S. economy
  • LDC U.S. (2021)
• One in 200 Latinos opens a new business each month, the highest degree of entrepreneurship of any demographic group in the U.S.
  • McKinsey (2021)
• Latinos are more likely to be sole proprietors: 92.5% of Latino-owned businesses are single-person firms.
  • McKinsey (2021)
• Latinos start more businesses per capita than any other racial or ethnic group in the United States.
  • McKinsey (2021)
• The number of Hispanic business owners has grown 34% in the last 10 years.
  • U.S. Small Business Administration (2020)
• There are an estimated 4.65 million Hispanic-owned businesses in the U.S., making them the fastest-growing segment of U.S. small businesses. 
  • U.S. Small Business Administration (2020)
• When Latino entrepreneurs start a business, 70% of their funding comes from personal savings, according to the Stanford study, while just six percent comes from commercial loans.
  • JPMorgan Chase & CO.

PURCHASING POWER 

• Latino wealth has grown by an average of around 9%.
  • McKinsey (2022)
• With earnings of more than $1 trillion each year and tax contributions of more than $252 billion, Hispanics not only add significant value to the U.S. economy but also support and help fund social services and infrastructure that ultimately benefit all Americans.
  • New American Economy Research Fund (2020)
• In the past 10 years, Latino/x-owned businesses have started at a faster rate than other groups—a 44% growth rate—compared to only 4% for non-Latino-owned firms.
  • LBAN State of Latino Entrepreneurship (2021)
• The number of employees at Latino/x-owned businesses has grown 55% since 2007.
  • Forbes (2022)
• There are now approximately 400,000-450,000 Latino/x-owned employer businesses.
  • LBAN State of Latino Entrepreneurship (2021)
• Growing consumption and business ownership trends result in $2.75 trillion of total economic output by Latinos in the United States.
  • LBAN State of Latino Entrepreneurship (2021)
• At over $1.7 trillion, U.S. Latino purchasing power is growing 70% faster than non – Latinos.
  • L’ATTITUDE (2020)

 THE WORKFORCE

• Latinos account for 85% of all farmworkers, 59% of the country’s construction crews, 53% of all employees in food services, and 39% of the nation’s total workforce. 
  • LULAC
• Latinos make up a large portion of the labor force in service sectors that were considered essential after the COVID-19 pandemic started (around 65%). 
  • ABC News (2020)
• A report published by the UCLA Latino Policy and Politics Initiative examines unemployment figures for Latinas as well as changes in the number of Latinas in the U.S. labor force since the beginning of the COVID-19 pandemic. 
  • Latinas are disproportionately employed in leisure, hospitality, and related low-wage industries that were particularly vulnerable to pandemic-related closures.
  • A lack of access to education and training opportunities for higher wage opportunities disincentivizes Latinas’ participation in the labor force overall.
  • Latinas are disproportionately responsible for family care obligations versus Latino men, and they are more likely to stay at home than U.S. mothers of other racial backgrounds. This burden was exacerbated during the pandemic due to the closures of schools and daycare centers.
    • UCLA Latino Policy and Politics Initiative (2021)
• The Hispanic proportion of the workforce has increased from 8.5% in 1990 to 18.0% in 2020. In 2030, the Bureau of Labor Statistics projects Hispanics to account for 1 out of every 5 workers in the labor force, at 21.2%.
  • US Department of Labor Blog (2021)

POPULATION/GROWTH

• The Latino/a population grew from 50.5 million in the 2010 Census to 62.1 million in the 2020 Census, an increase of more than 11.6 million in ten years. 
  • USHCC Census Report (2020)
• While the nation’s population increased between 2010 and 2020, the Latino/a population increase accounted for more than half, 51.1% of our nation’s overall growth, affirming that Latinos/as are the fastest-growing demographic in America. 

USHCC Census Report (2020)