Expected Growth in Hispanic-Owned Businesses

Wednesday, 27 January 2010 20:19

When the owner of Concept 100 Realty, Inc. decided to retire in October 2009, Lupita Mitz saw her opportunity. As a broker for the company for the past three years, she felt that she was ready to become an owner.

“I was surprised how easy it would be to take it over,” Mitz said. “Now I’m looking to grow the company.”

Mitz is just one of many members in the Hispanic community taking the plunge into business management.

The number of Hispanic-owned businesses in the United States is expected to grow 41.8 percent in the next six years to 4.3 million, according to a study done by HispanTelligence.

The total revenues will surge 39 percent to more than $539 billion, according to new estimates. Motivated by growing entrepreneurial trends and affluence among the nation's largest minority population, the increase is expected to come at a rate of 8.5 percent over the next couple years.

“There are several factors contributing to the growth of Hispanic-owned business,” said Lea Marquez-Peterson, president of the Tucson Hispanic Chamber of Commerce. “Hispanics are the nation’s largest and fastest-growing minority group and with easier access to education and higher incomes. This equates to purchasing power.”

The Tucson Hispanic Chamber of Commerce is an organization which serves as a resource for nearly 500 Tucson businesses. The THCC serves the public by connecting businesses with information and contacts, serving as a voice in legislation and promoting locally owned businesses, said Marquez-Peterson.

“The Tucson Hispanic Chamber of Commerce has been a big help is showing me how best to promote my business,” Mitz said. “I am planning to use online sites like Facebook and MySpace to advertise. Right now is a great time to try and expand because everyone is being cautious. In a few months people will start to buy again and I’ll be ready.”

The current economic situation the country is facing has led to several factors which have made and will continue to make starting a business easier, said Marquez-Peterson.

These factors include cheap real estate caused by the closure of many stores, a large population of the unemployed and increased help from the government seeking to boost the economy.

“Right now, more Hispanics are realizing that they have buying power, and this power will affect which businesses are growing,” said Vera Pavlakovich-Kochi, senior regional scientist from the Economics and Business Research Center at the Eller College of Management. “The growth of these businesses will lead to greater wealth among Hispanics and greater political power.”

Power is another large motivating factor in the growth of business.

Written by Samantha S. Easter You are reading Expected Growth in Hispanic-Owned Businesses articles