National Hispanic Heritage Month begins Sept. 15 and WalletHub recently released its report on 2023’s Best Cities for Hispanic Entrepreneurs.
So, where can Hispanic entrepreneurs find the most fertile ground for their enterprises? WalletHub compared more than 180 U.S. cities across 24 key metrics. The data set ranges from the Hispanic entrepreneurship rate to Hispanic income growth to the share of Hispanic-owned businesses.
“When evaluating the best cities for Hispanic entrepreneurs, several key indicators can provide insights into the potential for success and growth,” says Andrew Burnstine, Ph.D. – Associate Professor, Lynn University. “These indicators often encompass factors that create a supportive environment for entrepreneurship, economic opportunities, and quality of life. Here are the top 5 indicators to consider: Business-Friendly Policies and Regulations…Access to Funding…Networking and Supportive Community…Diverse Customer Base…[and] Educational and Training Resources.”
| Top 20 Cities for Hispanic Entrepreneurs | |
| 1. Orlando, FL | 11. Laredo, TX |
| 2. Miami, FL | 12. Amarillo, TX |
| 3. Pembroke Pines, FL | 13. Las Cruces, NM |
| 4. Cape Coral, FL | 14. Nampa, ID |
| 5. Fort Lauderdale, FL | 15. Ontario, CA |
| 6. Port St. Lucie, FL | 16. St. Petersburg, FL |
| 7. Hialeah, FL | 17. Riverside, CA |
| 8. Santa Clarita, CA | 18. West Valley City, UT |
| 9. Tampa, FL | 19. San Antonio, TX |
| 10. Albuquerque, NM | 20. Denver, CO |
Best vs. Worst
- Hialeah, Florida, has the highest share of Hispanic residents, 95.82%, which is 76 times higher than in Charleston, West Virginia, the city with the lowest at 1.26%.
- Mobile, Alabama, has one of the lowest Hispanic unemployment rates, 0.9%, which is 15.6 times lower than in Akron, Ohio, the city with the highest at 14%.
- Miami, Hialeah, Fort Lauderdale and Pembroke Pines, Florida, have the highest entrepreneurship rate among the Hispanic population, 1.81%, which is 22.6 times higher than in Billings, Montana, the city with the lowest at 0.08%.
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What are the biggest challenges faced by Hispanic entrepreneurs?
“Year after year, our research has shown that two of the most pressing challenges facing Latino-owned employer businesses are (1) access to financing and (2) gaps in government and corporate contracts,” says Barbara Gomez-Aguinaga, Ph.D. – Associate Director, Stanford Latino Entrepreneurship Initiative, Stanford University. “From startups to large corporations, access to financing is key for the development, maintenance, and growth of American businesses, including Latino-owned businesses (who are the fastest-growing segment of the U.S. business population).”
“Given that governments and corporations are multi-billion-dollar customers and the US federal government is the largest buyer of goods and services in the entire world, leveling the playing field for Latino entrepreneurs is key to a stronger American economy.”
How do you explain the rapid growth of Latino entrepreneurs and are they, in your opinion, the key to a stronger economy?
“The rapid growth of Latino entrepreneurs can be attributed to a combination of various factors, including changing demographics, increased access to resources, cultural values, and entrepreneurial drive,” says Burnstine. “While they contribute significantly to the economy, whether they are the ‘key’ to a stronger economy is a more complex question that involves considering their impact alongside other factors…A diverse and inclusive entrepreneurial landscape, coupled with favorable economic conditions and policies, leads to sustained economic growth.”
