It turns out that the United States is a home for many aliens of Hispanic origin. According to a report by the Census Bureau, approximately 55 million Hispanics, just about 17% of the whole nation’s population reside in the U.S. Moreover, there are over four million businesses owned by Hispanics throughout the U.S.
What’s more, according to the United States Hispanic Chamber of Commerce, Hispanic-owned companies have recorded a notable boost in revenue amounting to more than $660 billion. And this is contributed to by the fact that entrepreneurs of Hispanic origin have been establishing businesses 15 times the country’s average over the past decade.
Take for example;
The Pacific region which only comprises of California, Washington, Alaska and Oregon is a home for over 1/4 of all Hispanic-owned companies (1,057,301 businesses) in America. Next is the South Atlantic region which extends from Maryland to Florida where 964,000 Hispanic-owned companies stand. And lastly, The West South Central region which includes Texas, Arkansas, Oklahoma and Louisiana that hosts about 912,000 businesses.
Though the Midwest has not been a soft spot for Hispanics, lately some have been shifting to the region in search of jobs, more economic opportunities and to enjoy the low cost of living. And somehow surprisingly, this has led to an increase number of businesses owned by Hispanics in the Midwest region by a promising 30%.
High utility bills, sky-scraping taxes and difficulty in accessing small business loans to execute a business idea are the top reasons most Hispanics are fleeing away from the likes of New York and California. For one reason or another, it’s like most Hispanic business owners fail to meet criteria set by traditional banks— maybe due to bad credit, no valuable asset to offer as collateral or lack of some useful credentials. As a result, some end up closing businesses for lack of working capital which is essential for the smooth operation of any company
According to a 2016 study that involved 25,000 small companies, 2,000 entrepreneurs of Hispanic origin applied for business loans through online financial providers like First American Merchant over the past one year. This research further indicates that the number of Hispanic applicants seeking funds from the online platform rose by 68.7 % in the past year and that these businesses reported annual revenues of $202,328, up from last year’s $68,540.
Again, the research revealed the top there sectors preferred by Hispanics. Retail trade led at 15.3%, food services and accommodations followed closely at 13.2%, and third was construction at 10.2%.
Generally, this is remarkable progress and with online funding at its peak; we expect to see more growth even for business owners with bad credit who are now being supported by most online lenders.