Entrepreneurship is an increasingly popular trend in the United States, and Hispanics are leading the way in this field.
The number of Hispanic-owned businesses in the U.S. has increased by 46% since 2007, making them leaders in entrepreneurship among minority groups, according to the National Small Business Owners Association (NSBA) Business Trend Report.
There are several reasons behind this increase in Hispanic entrepreneurship. First, they often face barriers in the traditional job market. Therefore, they see entrepreneurship as taking control of their economic destiny and building a better life for themselves and their families.
Reasons for Hispanic Entrepreneurship
According to the Pew Research Center projections, Hispanics will represent 29% of the total US population by 2060, making them the fastest-growing racial or ethnic minority in the country and contributing to their growing purchasing power.
With this demographic growth comes an increase in Hispanic purchasing power, a steadily growing market for Latino entrepreneurs.
In addition, many Hispanics have business and entrepreneurship experience in their home countries, giving them an advantage in the U.S. market. Many Hispanics also have strong community networks, which helps them obtain financing and support in starting and growing their businesses.
Regarding trends in business start-ups, Hispanics are leading the way in establishing businesses in several sectors, including the vibrant food and beverage industry. One of the main reasons behind this is the richness of its offerings.
Between 2010 and 2019, Hispanic food sales in the U.S. grew by 80%, according to the University of Florida Food Research Institute.
Related Article: U.S. Hispanic Businesses reach staggering numbers: 4.37 million and counting
As a sideline, Nielsen reported that as of 2019, Hispanic food and beverages already accounted for 10% of all retail sales in this category in the U.S.
Hispanic entrepreneurship not only benefits individual entrepreneurs but also has a positive impact on the country’s economy.
According to a U.S. Chamber of Commerce report, Hispanic-owned businesses generated over $700 billion in revenue in 2019 and employed more than 3.5 million people.
Conclusion
The rise of Hispanic entrepreneurship in the United States is an exciting and constantly growing trend. An indispensable element is the creation of brands that support and distinguish each venture, that transmit in a direct and close way the identity and essence of the project.
A grounded, focused, and meaningful brand will be a valuable tool for consolidation due to the affinity and distinction it will achieve in the consumer’s mind.
With a constantly growing market and a strong business community, the future of Hispanic entrepreneurship looks bright.