A recent report issued by the congressional Democrats of the Joint Economic Committee estimates the total economic output of Hispanic Americans in the United States is over $2 trillion, with 66.3 percent participation in the labor force, 4 percent above the national average of 62.3 percent. Also, the unemployment rate of 3.8 percent among Hispanics in August was approaching the national rate of 3.5 percent.
Almost 5 million Hispanic owned businesses employ around 3 million workers and contribute annually over $800 million to the US economy. But Hispanic owned companies are small, only one third of them employ 5 workers or more.
Despite the fact that the rate of creation of Hispanic owned businesses is higher than the national average, the main obstacle to their expansion is limited access to credit. Based on the yearly Small Business Credit Survey, carried out by the Federal Reserve banks in all 50 states and the District of Columbia, the 2022 Report on Firms Owned by People of Color was recently released. The Report concludes “White-owned firms were twice as likely as Asian- and Hispanic-owned firms and three times as likely as Black-owned firms to have their financing needs met.”
https://www.fedsmallbusiness.org/survey/2022/2022-report-on-firms-owned-by-people-of-color
Therefore, up to 70 percent of Hispanic entrepreneurs’ resort to personal sources of financing.
