Hispanic Businesses in the United States

Hispanic Businesses in the United States 09/18/2025 By Barbara Weltman September 15 through October 15 is National Hispanic Heritage Month. It’s a time to recognize the contributions of the Hispanic population to the United States. Hispanics comprise about 20 percent of the US population, making them the largest racial or ethnic minority in the country. From a business perspective, Hispanics own more than 5.1 million businesses (14.5 percent of all US businesses) and employ nearly 3 million workers. Because Hispanics are a minority, there are some government incentives to help start and grow a business. Small business owners in the US should pay close attention to Hispanic businesses and to Hispanic consumers because of their economic influence, demographic growth, and cultural impact. Status of Hispanic businesses According to Brookings, “Latino- or Hispanic-owned businesses have grown at an average annual rate of 7.7 percent, surpassing the 0.46 percent growth rate for all employer businesses.” Best locations for Hispanic businesses WalletHub’s recent survey shows the best locations for Hispanic entrepreneurs, ranking them from #1 (Orlando, Florida) to #182 (Huntington, West Virginia). Eleven of the top 20 cities are in Florida. The survey is based on 23 key indicators of business friendliness toward Hispanic entrepreneurs, which are grouped into two main dimensions—Hispanic business friendliness and Hispanic purchasing power. Dover, Delaware, ranked #1 for Hispanic purchasing power. Government contracting The federal government aims to award 23 percent of prime federal contract dollars to small businesses. Many Hispanic-owned businesses may qualify as “small” for purposes of these contracting opportunities. Some of these dollars are supposed to go to specified small businesses. Small disadvantaged businesses (SDB). The aim is at least 11 percent of federal contracting dollars. SDBs are firms 51 percent or more owned and controlled by one or more disadvantaged persons. Disadvantaged means socially or economically disadvantaged (there are net worth and income limits). 8(a) businesses. They are supposed to receive 5 percent of small business contracts. Businesses eligible in this category include firms 51 percent or more owned and controlled by one or more disadvantaged persons. HUBZone businesses. They are supposed to receive 3 percent of prime contract dollars. HUBZone businesses are firms within distressed urban and rural communities and have at least 35 percent of its employees living within the HUBZone. State and local governments also have contracting opportunities that may benefit Hispanic-owned businesses. Tax breaks There are no specific tax breaks for Hispanic-owned businesses; they are treated like all businesses. But because they may be located in low-income areas, certain tax breaks come into play: Opportunity zone businesses. If a business is located within a designated Opportunity Zone (there are more than 8,700 designated zones) and meets the criteria to be a Qualified Opportunity Zone Business (QOZB), it may attract investments to help the business grow. Investors reap serious tax breaks for their investments if they invest in Qualified Opportunity Zone Businesses (QOZBs) (see Q56 and Q57). New markets credit. This is a federal tax credit designed to encourage investment in low-income communities (places where the poverty rate is 20 percent or more or median family income is at or below 80 percent of the area median). Investors that make equity investments in Community Development Entities (QDEs) get a tax credit—spread over 7 years. The credit, which had been temporary, was made permanent by the One Big Beautiful Bill Act. QDEs use the investments to make attractive loans to businesses within their area. Final thought You don’t have to be Hispanic to appreciate National Hispanic Heritage Month. As a small business owner, it’s important to recognize the demographics . . . with about 20 percent of the population Hispanic now and 28 percent expected by 2030 . . . and what this represents in terms of buying power. Buena suerte to all small business owners! For information concerning business start-ups, see this list of blogs. About Barbara Weltman Called “the guru of small business taxes” by The Wall Street Journal, Barbara has been working since 1977 as an attorney and small business advocate with a mission to make entrepreneurs smarter™. Source:Big Ideas for Small Business Back To News	SBE Northeast Subscribe Now Connect with us

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