Discover the cities with the best conditions for Latinos doing business.
The Hispanic and Latino community is growing exponentially and it is expected to make up a third of the total U.S. population by the year 2050.
A larger Hispanic population means a growing number of Hispanic businesses as well.
But which U.S. cities provide the best conditions for Hispanic businesses?
To answer this question, WalletHub conducted an investigation comparing the 150 largest U.S. cities on 21 key indicators of business friendliness toward Hispanic entrepreneurs.
The 21 key indicators were divided into two categories: Hispanic Business-Friendliness and Hispanic Purchasing Power.
Hispanic Business-Friendliness Indicators:
- Share of Hispanic-Owned Businesses
- Hispanic Entrepreneurship Rate
- Average Growth of Hispanic Business Revenues
- Small Business-Friendliness Score
- Entrepreneurial Activity Index
- Industry Variety
- 5-Year Business Survival Rate
- Significant Startups per Capita
- Small-Business Loans per Total Number of Small Businesses
- Average Monthly Rent for Office Space
- Corporate Tax Rank
- Average Length of Workday (in hours)
Hispanic Purchasing Power Indicators:
- Income Growth for Hispanics
- Housing Affordability for Hispanics
- Hispanic Unemployment Rate
- Percentage of Hispanic Residents
- Hispanic Population Growth
- Percentage of Hispanics with at Least a Bachelor’s Degree
- Hispanic Housing Tenure
- City Growth
Top 5 cities for Hispanic entrepreneurship
The total score for each of the cities evaluated was based on its weighted average across all 21 of the metrics we mentioned previously.
The 5 cities with the highest scores were: Laredo, El Paso, Pembroke Pines, Corpus Christi and Brownsville. In contrast, the 5 cities with the lowest scores were Jersey City, Cleveland, Philadelphia, New York and Providence.
Below we take a closer look at the top 5 cities:
1. Laredo, Texas
Laredo is the city with the second highest percentage of Hispanic residents in the U.S., so it is no surprise that it also has the second highest share of Hispanic-owned businesses.
These numbers make Laredo the perfect city for Hispanic entrepreneurs.
2. El Paso, Texas
Four out of the five top cities for Hispanic entrepreneurship are located in Texas. This is due to the estate’s proximity to Mexico.
El Paso has the fourth highest percentage of Hispanic residents in the U.S.
The city is helped by the El Paso Hispanic Chamber of Commerce, which works to add to the growth of the city’s relationship with Mexico and the business owners that work in both cities.
3. Pembroke Pines, Florida
This city is a major population center in the Miami Metropolitan Area and the only city outside of Texas to make the top 5 of the list.
Asides from having a large Hispanic population, Pembroke Pines gets a lot of points for being a big supporter of small businesses as well as entrepreneurs.
4. Corpus Christi, Texas
Corpus Christi is home to the Coastal Bend Innovation Center, a place that provides small businesses and startups with strategic guidance, access to investors, business mentors, and a ready-made network of contacts.
This coastal city is also proud to have a very supportive community which is always a plus for any business.
5. Brownsville, Texas
Finally, Brownsville is the city with the third highest percentage of Hispanic residents in the U.S.
This city also has the third highest share of Hispanic-owned businesses.
Notably, Brownsville is also home to one of the fastest growing manufacturing sectors in the United States.
To see the full report you can visit WalletHub.