Hispanic business boom: Over 173,000 new companies and growth in 48 states
If Latinos in the U.S. were an independent country, they would rank fourth among the world's largest economies, ahead of countries such as the United Kingdom, Japan and India.
Image of workers in the United States
Hispanic entrepreneurship has established itself as one of the major drivers of business growth in the country. Between 2017 and 2023, Hispanic entrepreneurs created more than 173,000 new businesses with employees, a 54% increase, while non-Hispanic entrepreneurs accounted for just over 48,000.
The data is part of a new report from Third Way, which highlights the increasingly important role of Hispanics in the U.S. economy. According to the study, if Latinos in the U.S. were an independent country, they would rank fourth among the world's largest economies, ahead of countries such as the United Kingdom, Japan and India.
Women also driving growth
The rise of Hispanic entrepreneurship also has a significant female component. One in three new Hispanic-owned businesses with employees is owned by a woman.
Businesses led by Hispanic women also saw strong revenue growth. Between 2020 and 2023, their revenue nearly doubled, outpacing the growth recorded by businesses owned by Hispanic men.
This growth occurred even during the pandemic, a period when many U.S. businesses struggled to stay open. Hispanic-owned businesses continued to increase in number and also saw revenue growth.
Between 2020 and 2023, the annual change in revenue generated by Hispanic-owned businesses outpaced that of non-Hispanic-owned businesses.
Trend is evident across nearly the entire country
Between 2017 and 2023, the number of Hispanic-owned businesses increased in 48 of the 50 states.
The growth was particularly significant in states with relatively small Hispanic business communities, including Minnesota, Arkansas, Massachusetts, North Dakota, Maine and Wyoming.
This expansion shows that Hispanic entrepreneurship is spreading across different regions of the country and opens up new opportunities for business development and investment.
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