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The National Women’s Business Council (NWBC) has released a report, Hispanic Women Entrepreneurship: Understanding Diversity Among Hispanic Women Entrepreneurs, addressing the state and potential of Hispanic women entrepreneurs in the U.S. Hispanic women entrepreneurs were the fastest-growing business segment from 2007 to 2016—growing 137 percent, according to the 2016 State of Women-Owned Businesses Report by American Express OPEN and Womenable.
Hispanic women-owned businesses are expected to continue growing rapidly, as the Census Bureau projects the population of Hispanic women to nearly double in size by 2050 and Hispanics to become the largest minority group in the U.S. The American Express OPEN and Womenable report also estimates that there are currently 1.9 million Hispanic women-owned firms; these businesses employ 550,400 workers and generate $97 billion in revenues.
While this growth is encouraging, the 2012 Survey of Business Owners and Self-Employed Persons (SBO) reveals that Hispanic women-owned businesses generated an average of $54,000 in revenue per year compared to White women-owned businesses ($171,000) and White men-owned businesses ($716,000). Imagine if their success was maximized.
The report offers solutions to the problems preventing Hispanic women-owned businesses from increasing their revenues and sustainability, such as access to capital. Accessing business capital is a challenge for Hispanics, as:
- In 2013, 17.9 percent of Hispanics were unbanked
- Only 46 percent of Hispanics were homeowners in 2007
- In 2007, only 28 percent of single Hispanic women were homeowners
- In 2010, 50 percent of single Hispanic and Black women reported having no or negative wealth
From mentorship to targeted programs and financial literacy, the NWBC poses a variety of approaches to unlocking the potential of Hispanic women entrepreneurs. As the NWBC articulates, Hispanic women entrepreneurs are an “untapped engine of economic growth,” and if their revenues matched those of other women-owned businesses, a potential $155 billion in revenues and 80,000 new jobs would be added to the economy.
To learn more about Hispanic women entrepreneurs and view the NWBC report in full, please, click here.