Did you know that between 2002 and 2007, the number of Hispanic-owned firms grew by nearly 50 percent? Today, Hispanics own 2.3 million businesses, or 8 percent, of all U.S. non farm businesses. What kind of a financial opportunity does this represent for your credit union? A large one.
In certain states, the opportunity is particularly clear — for instance, 8 percent of all Nevada businesses are Hispanic-owned. In California, that stat jumps to 17 percent. The states with the highest growth rates for the Hispanic community are in the Southeast, Midwest and Mid-Atlantic regions. As entrepreneurialism and a strong work ethic are strong tenets of the Hispanic culture, it stands to reason these regions are about to see an explosion in the number of Hispanic-owned businesses.
Like most small businesspeople, Hispanic leaders need strong guidance, both financial and otherwise, to achieve and maintain success. And credit unions in particular, with a focus on the “people helping people” philosophy, understand serving this disproportionately underserved community is not only an investment in the sustainability of their cooperatives; it’s a way to continue supporting their collective mission.
The potential to increase business revenues can be seen in the simple fact that Hispanic-owned businesses have a tendency to generate average annual incomes well below the average in the U.S. (even below the average for minority-owned businesses). Lower-than-average income from these businesses may be due to the challenges Hispanic Americans face when it comes to founding and maintaining a successful business, namely limited capital and access to credit. And, often Hispanic business owners are on their own, without the benefit of boards of directors, shareholders or even executive teams. This underscores the importance of leadership support and guidance for this critical segment of the Hispanic population.
This blog is an excerpt from the new Coopera white paper, “The Multifaceted Hispanic Market,” available for download at http://tinyurl.com/c8jwf45.Leave a comment