Workforce Development

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   Hispanic Businesses & Entrepreneurs, an annual report from the collaborative efforts of the business intelligence firm Geoscape® and the United States Hispanic Chamber of Commerce (USHCC), released data in 2014 concerning the changing ethnic composition of business owners in the United States.  According to the report, the number of Hispanic-owned businesses has been increasing since 2002, from 1.57 million to 2.26 million in 2007, and was “expected to grow to more than 3.22 million [by 2014], representing a staggering growth rate of 43% since 2007.”  That is more than double the growth rate of all U.S. businesses since 2007, a projected 20.2% increase.

   States in the Southern region were projected to have the greatest Hispanic-owned businesses growth, with the East South Central region (Kentucky, Tennessee, Mississippi and Arizona) having the largest increase of an estimated 59%, and the South Atlantic region (Maryland, the Virginias, the Carolinas, Georgia and Florida) the second largest at 57%.  Geoscape attributes this increase to “greater Hispanic migration [especially in the Carolinas, Alabama, Mississippi, Tennessee and Kentucky] compared to the rest of the country.”  Geoscape expects the number of businesses with Hispanic owners in the South Atlantic Census Division to reach 893,867, an increase of 323,667 businesses since 2007, making the South Atlantic the fastest-growing region for Hispanic/Latino entrepreneurs.

   Geoscape uses a CultureCodeTM-based consumer segmentation called Hispanicity®, or acculturation categories for Hispanic/Latino participants that were surveyed, determined by “country-of-origin, life stage, socioeconomic strata and a variety of shopping and behavior metrics.”  Geoscape determined the distribution of Hispanic/Latino business owners according to these categories, finding, among other things, that “40% of today’s Hispanic business owners belong to the ‘Americanizado’…segment,” an Americanizado being someone who is “English dominant (nearly no Spanish); born in US and often 3rd+ generation; [and] has few Hispanic cultural practices.”  However, 25% of Hispanic/Latino business owners are “Hispano,” a person who may be described as “Spanish preferred (some English); immigrated as adult and in U.S. 10+ years; [and] pre-dominant Hispanic cultural practices,” making for the second largest group of Hispanic/Latino business owners.  Also, the number of business owners that are Americanizado has only increased by 5% since 2013, whereas the number of Hispano or “Nueva Latina” (“English preferred [some Spanish]; born in U.S. and typically 2nd generation; some Hispanic cultural practices and often ‘retro-acculturate’ ”) business owners has increased 16% in one year.

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1Geoscape.com, 2015. “CultureCode™: Understand, Find and Reach Consumers in their Cultural Context,” Accessed March 24 2015. http://www.geoscape.com/literaturepdfs/CultureCode.pdf.

2All statistics and quotes are from Hispanic Businesses & Entrepreneurs Drive Growth in the New Economy: 2nd Annual Report unless otherwise noted.  Available at: http://www.geoscape.com/HBR/pdf/Geoscape_HispanicBusinessOwners_FINAL.pdf.

 

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Changes in Ethnic Compostion of Business Owners

Workforce Development projection

 

Citation:

Hispanic Businesses & Entrepreneurs Drive Growth in the New Economy: 2nd Annual Report. (2014). Miami, FL: Geoscape and United States Hispanic Chamber of Commerce. http://www.geoscape.com/HBR/pdf/Geoscape_HispanicBusinessOwners_FINAL.pdf.

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