Hispanic-owned small businesses drive significant U.S. economic growth

The economic contribution of Latinos in the United States is estimated at $4.4 trillion, a figure comparable to the fourth-largest gross domestic product in the world. This output exceeds that of nations such as India, the United Kingdom, France, and Japan.

Hispanic-owned small businesses are experiencing rapid expansion, growing at an annual rate of 7.7%, which is nearly 17 times the national average for all small businesses. Between 2007 and 2023, this segment grew by 158%, significantly outpacing the 24% growth seen in other business categories. Additionally, Latino employer-owned businesses grew by 44% between 2018 and 2023, exceeding the growth of non-Latino employer businesses by 4.5% annually.

This growth is widespread across the country, with increases in Hispanic-owned businesses reported in 48 of the 50 U.S. states and nearly 90% of major metropolitan areas. Notable state-level increases between 2018 and 2023 include Utah at 145%, North Dakota at 140%, Idaho at 130%, and Minnesota at 114%. As of 2023, Hispanic-owned companies represented 8.4% of businesses with one or more employees and 17.5% of nonemployer businesses.