Latino small-business owners are the fastest-growing group of entrepreneurs in North America. Stanford University revealed that over the past 10 years, the number of Latino business owners grew 34%, compared to 1% for remaining owners in the United States. However, in 2020 this changed.
Prior to covid19, Latino small business owners were increasingly becoming an economic force in the U.S. This ethnic group contributed about $500 billion to the economy in annual sales.
Lendinero conducted research on 400 Latino businesses in different states. The data gathered from Lendinero research was mostly existing clients. Lendinero has the financial information on these businesses. The study compared gross revenues from 2018 to 2020. The study revealed, that from 2018 to 2020, annual revenues for Hispanic-owned businesses increased by more than 10%.
A 2019 report to Congress based on data from 2017 found almost 60 million Latinos in the United States already account for more than $2 trillion in economic activity. Latinos are projected to make up 30% of the U.S. population by 2020. The economic activity is likely to continue to grow.
Latino-owned businesses operate in specific states to include, California, Florida, Texas, New York and Illinois. However, in 2020 LOBs were operating in non-traditional states to include, Georgia, North Carolina, Tennessee, and other states. Latino entrepreneurs employ more than 3 million people, according to the 2019 State of Latino Entrepreneurship report by the Stanford Latino Entrepreneurship Initiative (SLEI). Covid19 slowed down the growth for this sector. Latino businesses were not the only ones who experienced a slow down. Anglo and Afro-American owned businesses have also suffered due to the pandemic.