Hispanics among the most entrepreneurial people in U.S.
With the U.S. economy thriving on capitalism – where business owners success or failure is largely determined by consumers who buy from them – some people who start a business do quite well. Through a combination of finding the right market and advertising a quality product or service, entrepreneurialism is rewarded, enabling business owners to provide for their families, whether that's done through an international transfer or purchasing a home. Either way, business owners are interested in providing security for themselves and their families.
And when it comes to who these business owners are, there's a good chance they're of Hispanic origin.
Hispanic business ownership more than doubled in a five-year period
According to a recent national Census performed by the federal government, the number of Hispanic-owned businesses in the U.S. ballooned to 2.3 million in 2007, the latest year for which information of this type is available. That's nearly 44 percent higher than when a similar analysis was done in 2002. At that time, just 18 percent of businesses within the U.S. were owned by people who originally hailed from Latin America.
The report also showed the states in which these Hispanic business owners got their start-ups off the ground. In New Mexico, for instance, nearly one in every four businesses is owned and operated by someone of Latin American or Hispanic descent. Florida, Texas, California and Arizona rounded out the top five states where a large percentage of business owners are Hispanic.
It appears as though Hispanics who live in New Mexico are particularly keen on starting a business, as even though the state boasts a high number of people who originate from Mexico, Central America or South America, it's not among the leading states for immigrants. According to the Immigration Policy Center, approximately 205,000 people who reside within state limits are immigrants. While this may seem like a lot, it's nowhere near the number in places like California and Texas, totaling 10.1 million and 4.1 million, respectively.
Mexico yields high number of business owners
Other points of interest to come out of the Hispanic-owned businesses report is how many business owners derive from Mexico originally. The Census Bureau says that Mexicans account for nearly 46 percent of Latino-operated businesses based on 2007 figures. Data also shows more than 10 percent of Cubans own businesses, while 7 percent of Puerto Ricans own companies.
Though a report of this type has not been done since then, it's likely that business ownership among Hispanics within the U.S. has gone up. In the most recent Census, which was performed in 2010, government statistics show that Latin America occupies the largest region-of-birth group. In other words, more than half – 53 percent – of people living within the U.S. but from another country are Latin Americans. The remainder come from countries within Asia, Europe, Africa and a smaller percentage from Oceania – like New Zealand, Australia and Fiji.
Hispanics say hard work breeds success
Ultimately, these reports suggest to researchers that Hispanics thrive on individualism and a strong work ethic. According to a tracking poll conducted by Latino Decisions, a political opinion research firm, nearly 76 percent of Hispanics "strongly agreed" that hard work leads to success.