The average annual revenue of Latino-owned business increased from $258,702 in 2016-17 to $327,189 in 2017-18, an increase of 26.5%, according to a new study.
“I think there has been a strong growth in the Latino businesses in the past year because when we see the economy is doing well that gives us the confidence to invest in a business,” says Aurora Rodriguez, owner of Rodriguez Drywall Finishers, based in Fort Worth, Texas. “I have noticed also that when they see Hispanic companies being successful, it is motivating others to start their own businesses.”
Much of the growth can be attributed to the overall strength of the U.S. economy. Success breeds confidence, and applications for small business loans from Latino-owned companies jumped 22% during the past 12 months.
Just as the volume of applications has risen, so has the success rate of Latino applicants. According to the study, 27% of Latino business owners were approved for funding during the last 12 months, it’s roughly the same percentage as the approval rates for non-Latino-owned businesses, meaning the funding gap is shrinking.
California, Texas, New Jersey, Florida, and New York were the top 5 states for Latino-owned business loan applications. They represented 60% of the applications for loans for Latinos on Biz2Credit’s platform over the past 12 months. Two states – California and Texas – combined for more than 40 percent of the Latino small business loan requests in 2017-18.
“Biz2Credit’s study confirms what we have known for some time; the growing contribution and importance of the Latino-owned businesses in our marketplace,” said Manuel Chinea, COO of Popular Bank. “Providing access to better and faster financing options will allow Latino-owned businesses to build upon this momentum.”
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