Washington, DC / Bilingual Weekly
A new report published this past week by the U.S. Census Bureau reveals that the number of Hispanic-owned businesses in the United States increased by 43.7 percent —to 2.3 million, more than twice the national rate of 18.0 percent— between 2002 and 2007. About 45.8 percent of all Hispanic-owned businesses were owned by people of Mexican origin.
The report also notes Hispanic-owned businesses generated $345.2 billion in sales in 2007, up 55.5 percent compared with 2002. The number with receipts of $1 million or more increased 51.6 percent — from 29,168 to 44,206 businesses between 2002 and 2007.
These new data come from the Survey of Business Owners: Hispanic-Owned Businesses: 2007, which provides detailed information every five years for Hispanic-owned businesses, such as the number of firms, sales and receipts, number of paid employees and annual payroll.
Hispanic-owned businesses comprised 23.6 percent of all businesses in New Mexico —highest among all states— followed by Florida (22.4 percent), Texas (20.7 percent), California (16.5 percent) and Arizona (10.7 percent).
By 2007, behind Mexicans (45.8 percent,) Cubans accounted for 11.1 percent of Hispanic-owned businesses, Puerto Ricans accounted for 6.9 percent, and businesses owned by other people of Hispanic origin accounted for 34.5 percent.
Between 2002 and 2007, the number of businesses owned by people of Mexican origin increased by 47.7 percent, Puerto Rican by 43.0 percent, Cuban 65.5 percent, and other Hispanic-owned businesses grew by 30.6 percent.
Of the 2.3 million Hispanic-owned businesses, 249,168 had paid employees, an increase of 24.9 percent from 2002. These employer businesses employed 1.9 million people, an increase of 25.7 percent from 2002, and their payrolls totaled $54.6 billion, an increase of 48.7 percent. Receipts of Hispanic-owned employer businesses totaled $274.5 billion, an increase of 52.9 percent. Two millions of these businesses had no paid employees, an increase of 46.4 percent. These nonemployer businesses’ receipts totaled $70.7 billion, an increase of 66.6 percent.
The number of Hispanic-owned businesses with 100 or more employees increased by 26.4 percent from 1,508 to 1,906. These businesses generated $74.2 billion in revenues, an increase of 76.6 percent from 2002. Nearly one-third (30.0 percent) of Hispanic-owned businesses operated in the construction, repair and maintenance, and personal and laundry services industries. Wholesale trade, construction and retail trade accounted for 50.8 percent of Hispanic-owned business revenue.
The Survey of Business Owners defines Hispanic-owned businesses as firms in which Hispanics own 51 percent or more of the equity, interest or stock of the business.