The buying power of Hispanics in the United States is not a secret. For decades professional marketing and advertising agencies have been more than willing to cater specific products to an Hispanic demographic. Instead of relying solely on other people telling them what to buy, Hispanics have translated that buying power into the growth of millions Hispanic-owned and operated businesses across the nation.
According to the U.S. Census Bureau the Hispanic population in the United States as of July 1, 2017 was 58.9 million, making people of Hispanic origin the nationís largest ethnic or racial minority. By that data, Hispanics constitute 18.1 percent of the nationís total population.
As the Hispanic population in the country continues to grow, so do the number of Hispanic-owned businesses. According to the United States Hispanic Chamber of Commerce, the number of Hispanic-owned businesses in the U.S. has nearly doubled in the past decade from 2.26 million in 2007 to 4.37 million in 2017.
Due to the growth of these businesses over the past 15 years, Hispanics through both buying power and entrepreneurial growth have become vital to Americaís economic growth. A recent study commissioned through the Stanford Latino Entrepreneurship Initiative showed that between 2007 and 2012, 86 percent of the growth in all small businesses in the United States can be attributed to Hispanic-owned businesses.
Young Hispanic entrepreneurs broaden horizons
The upward mobility for Hispanics is on the rise as well as more young Hispanics continue to further their education beyond that previous generations and become more connected on a global scale. In fact, according to the Kauffman Index of Entrepreneurial Activity, Hispanics are 1.5 time more likely than the general population to start a business.
As for economic contributions the USHCC estimates, according to the most recent data available, sales from Hispanic-owned businesses will contribute more than $700 billion to the U.S. economy - a 32 percent increase since 2012.
Where this growth has been most present is in the South Atlantic region of the country an area comprised of Florida, Georgia, North and South Carolina, Virginia and West Virginia and Maryland. According to the USHCC, specifically from 2012 to 2017 the South Atlantic Census Division grew 42.8 percent to a projected 1.14 million Hispanic-owned firms. In comparison the Pacific Census Division comprised of California, Oregon, Washington, Alaska and Hawaii, grew 27.3 percent to represent a projected total of 1.10 million Hispanic-owned firms.
On the home front
Colorado is on pace with the national trends. Though not growing as quickly in Hispanic-owned firms as the South Atlantic, both Hispanic-owned businesses and Hispanic buying power are on the rise.
According to the Hispanic Chamber of Commerce of Metro Denver, in Colorado the Hispanic purchasing power totaled $21.9 billion, an increase of over 450 percent since 1990. With the stateís unemployment rate currently at 2.9 percent, the opportunities for growth among Hispanic business owners in the state remains high.
According to data published by the Hispanic Wealth Project, between 2010 and 2016, Hispanics accounted from 76.4 percent of the growth in the U.S. labor force. In Colorado itís predicted that between now and 2020, Hispanics will account for 60 percent of the overall labor force in the state.
Though becoming a business owner can be a monumental task, several outlets are available to those who are looking to start their own business.
In Colorado, dozens of resources are available for interested business owners. Colorado Business Women hosts monthly meetings and programs to support working women. The Colorado Enterprise Fund, Colorado Small Business Administration and the Hispanic Chamber of Commerce of Metro Denver offer multiple forms of outreach to small business owners.