With National Hispanic Heritage Month approaching and one in four new businesses being Hispanic-owned, the personal-finance website WalletHub today released its report on 2023’s Best Cities for Hispanic Entrepreneurs, as well as expert commentary.
To help Hispanic entrepreneurs find the most fertile ground for their enterprises, WalletHub compared more than 180 U.S. cities across 24 key metrics. The data set ranges from the Hispanic entrepreneurship rate to Hispanic income growth to the share of Hispanic-owned businesses.
Hispanic Business Climate in Cape Coral (1=Best, 91=Avg.):
- 68th – Share of Hispanic Residents
- 28th – Share of Hispanic-Owned Businesses
- 35th – Hispanic Unemployment Rate
- 13th – Hispanic Population Growth
- 4th – Hispanic Renter-to-Owner Ratio
- 8th – Hispanic Entrepreneurship Rate
- 67th – Median Annual Income of Hispanics (Adjusted for Cost of Living)
- 79th – Housing Affordability for Hispanics
For the full report, please visit:
https://wallethub.com/edu/best-and-worst-cities-for-hispanic-entrepreneurs/6491/
More from WalletHub
- Best & Worst Small Cities to Start a Business
- States with the Biggest and Smallest Wealth Gaps by Race/Ethnicity
- State Economies with the Most Racial Equality
- States with the Most Racial Progress
- Best Business Credit Cards
- Best Bank Accounts for Small Businesses
Expert Commentary
What are the biggest challenges faced by Hispanic entrepreneurs?
“Year after year, our research has shown that two of the most pressing challenges facing Latino-owned employer businesses are (1) access to financing and (2) gaps in government and corporate contracts. From startups to large corporations, access to financing is key for the development, maintenance, and growth of American businesses, including Latino-owned businesses (who are the fastest-growing segment of the U.S. business population). Our research shows that in 2022, Latino-owned employer businesses were 50% more likely to seek financing than their non-Hispanic white employer counterparts for business growth and maintenance purposes. However, Latino entrepreneurs face severe challenges in accessing financing. In 2022, for example, our research showed that Latino-owned employer businesses seeking loans from national banks had similar, if not stronger, business metrics than white-owned businesses but had lower approval rates for loans over $50,000. Similar gaps have been documented over the years across different sources of funding and financing.
The second challenge Latino entrepreneurs face is access to government and corporate contracts. Our research shows that in 2022, Latino-owned employer businesses were slightly more likely than white-owned employer businesses to secure at least one government or corporate contract (13% vs. 10%, respectively). However, Latino-owned employers secure government and corporate contracts that are dramatically smaller and that take substantially longer to secure. Given that governments and corporations are multi-billion-dollar customers and the US federal government is the largest buyer of goods and services in the entire world, leveling the playing field for Latino entrepreneurs is key to a stronger American economy.”
Barbara Gomez-Aguinaga, Ph.D. – Associate Director, Stanford Latino Entrepreneurship Initiative, Stanford University
“There are several common challenges that Hispanic-owned businesses and ventures encounter. They include: Unstable Economic Environment and Apparent Lack of Funding…Discrimination…Securing Funding…Insecurity and Lack of Self-Confidence…[and] Lack of Due Recognition. Opportunities don’t always come easy for Latinos in the United States, but in spite of that undeniable fact, the fastest-growing small business owners across the country are, in fact, Latino business owners. They employ millions of workers across multiple industries. Greater awareness of that should incentivize more Latinos and other minorities to pursue business ownership, further demonstrating that the American dream is available to anyone, regardless of their ethnic or racial background.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
In evaluating the best cities for Hispanic entrepreneurs, what are the top 5 indicators?
“Revenue growth of existing businesses. Access to government and corporate contracts among employer businesses. Geographical reach of existing businesses. Access for financing to businesses with diverse characteristics. State or local policies that promote and encourage entrepreneurship.”
Barbara Gomez-Aguinaga, Ph.D. – Associate Director, Stanford Latino Entrepreneurship Initiative, Stanford University
“When evaluating the best cities for Hispanic entrepreneurs, several key indicators can provide insights into the potential for success and growth. These indicators often encompass factors that create a supportive environment for entrepreneurship, economic opportunities, and quality of life. Here are the top 5 indicators to consider: Business-Friendly Policies and Regulations…Access to Funding…Networking and Supportive Community…Diverse Customer Base…[and] Educational and Training Resources.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
How do you explain the rapid growth of Latino entrepreneurs and are they, in your opinion, the key to a stronger economy?
“For several years, Latino-owned employer businesses have been the fastest-growing segment of the U.S. business population, and U.S. Latinos in general continue to contribute to the U.S. economy in record numbers. Year after year, our research has shown that Latino entrepreneurs continue to strengthen the American economy by creating employer businesses at a faster rate than any other racial or ethnic group in the country. Additionally, Latino-owned employer businesses have outpaced the revenue and payroll growth of American businesses at large. These growth trends are not a coincidence, as our research has revealed that Latino entrepreneurs are motivated to build long-term businesses to create generational wealth and are more likely to make changes to their businesses for growth and adaptation to new environments like the COVID-19 pandemic. Clearly, Latino entrepreneurs are a prominent source of economic activity, but they continue to face challenges that hurt American businesses as well as employees and the U.S. economy at large.”
Barbara Gomez-Aguinaga, Ph.D. – Associate Director, Stanford Latino Entrepreneurship Initiative, Stanford University
“The rapid growth of Latino entrepreneurs can be attributed to a combination of various factors, including changing demographics, increased access to resources, cultural values, and entrepreneurial drive. While they contribute significantly to the economy, whether they are the ‘key’ to a stronger economy is a more complex question that involves considering their impact alongside other factors…A diverse and inclusive entrepreneurial landscape, coupled with favorable economic conditions and policies, leads to sustained economic growth.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
