Latinx Business Boom 2019

46% Jump in Earnings for Latino-Owned Businesses in 2019

Latinos are heeding the call of “being your own boss,” and striking gold.  Outpacing non-Latino-owned businesses, the earnings of Latino-owned businesses jumped 46 percent during the past 12 months. 

According to the “Latino Small Business Study 2019” by financial site, the average revenue of Latino-owned businesses improved 46.5% in 2019, increasing to $479,413 from $327,189 in 2018, according to an annual study of 3,000 Latino-owned businesses.

This jump from previous years is part of an exciting upward trend.  Latino-owned businesses have grown 31.6% since 2012, and revenues increased 23% from 2017-18.

Expenses went up a bit, too.  Average operating expenses for Latino-owned businesses increased to $215,846 or 45% of the Average Annual Revenue an increase from $140,806 or 43%, in 2018.  The average operating expense also rose 3% for non-Latino-owned businesses. 

“The growth of Latino businesses is undeniable and will undoubtedly increase as this important group becomes a larger section of the population,” says Manuel Chinea, COO, Popular Bank. Chinea adds that by 2050, “Latinos are expected to comprise almost 30% of the population, compared to 18% today.  We see first-hand the enormous contribution these businesses make to our economy and communities, and Popular Bank works with them as the complexity of running their business increases.”

top industries for Hispanic entrepreneurs 2019. 18% food services
Source: Biz2Credit Latino Small Business Study 2019

Hispanic culture is well known for its love of good food.  So it is no surprise that the top industry for Hispanic entrepreneurs is accommodation/food services (18%), followed by other service businesses (17%), and construction (15%).  These business sectors are somewhat shielded from the effects of tariff issues, which likely contributes to their growth.

Business Funding

More Latinos are seeking outside funding for their businesses. Applications for credit by Latino-owned businesses increased by 23% over the past year, still comprising just 9% of the total number of applications submitted.  Many Latino businesses find funding for their businesses by applying for SBA “microloans” (amounts up to $50,000).  These loans are offered by regional and community banks with government guarantees, which encourage lending to companies that otherwise might not qualify for bank loans.

Latino businesses are thinking ahead, too.  Latino-owned businesses are seeking funding for long-term needs, such as commercial real estate and equipment purchases, as well as cash flow-related issues. 


The study also reveals that although revenues grew, average credit scores of these businesses dipped from last year (a dip was also noted for non-Latino-owned companies).  It was speculated that the use of personal credit to fund business expenses resulted in lower overall credit scores.  This was true both for Latino and non-Latino businesses. 

“While generally, the picture has been rosy for Latino businesses, it is a little concerning that credit scores dropped from the previous year,” says Rohit Arora, CEO of Biz2Credit. “This would seem to indicate that business owners may be using their own personal credit cards to fund their business growth if their companies did not qualify for loans. When credit scores are less than 600, it is hard to get traditional bank loans.”

About the Study

The 2019 study by Biz2Credit examined the primary financial information submitted by about 3,000 Latino-owned businesses on their own online platform. 

Biz2Credit offers a technology platform designed to provide small businesses with lending options. Biz2Credit was founded in 2007 and is backed by Nexus Venture Partners. It has arranged more than $2 billion in small business funding across the U.S.


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