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2018's Best Cities for Hispanic Entrepreneurs


Adam McCann, Financial Writer
Autumn, 2018

Expect the Hispanic and Latino community's contributions to the U.S. economy to be nothing short of monumental in the coming decades. Not only is this demographic expected to make up a more than 25% of the U.S. population by 2050—translating into large buying power—this group is also creating businesses at 15 times the national rate, according to one report.

The timing, therefore, could not be more appropriate for Hispanic entrepreneurs to make their business ideas a reality. But what places have the best conditions for a Hispanic owned enterprise? To answer that question, WalletHub compared more than 180 U.S. cities across 23 key indicators of business friendliness toward Hispanic entrepreneurs.

Our data set of 23 key metrics ranges from Hispanic entrepreneurship rate to median annual income of Hispanics to share of Hispanics with at least a bachelor's degree.


Main Findings

Best Cities for Hispanic Entrepreneurs

Overall Rank
(1=Best)
City
Total Score
'Hispanic Business-Friendliness' Rank
'Hispanic Purchasing Power' Rank
1
Laredo, TX
61.72
1
10
2
South Burlington, VT
61.10
10
1
3
Charleston, WV
57.40
32
3
4
Corpus Christi, TX
57.29
7
12
5
Oklahoma City, OK
55.56
6
38
6
Pembroke Pines, FL
54.93
13
16
7
Amarillo, TX
54.70
9
26
8
San Antonio, TX
54.59
12
18
9
Bismarck, ND
54.52
87
2
10
Casper, WY
53.92
14
22
11
Miami, FL
53.68
2
101
12
Tulsa, OK
53.59
5
79
13
Grand Prairie, TX
53.10
40
6
14
Sioux Falls, SD
52.98
15
31
15
Cheyenne, WY
52.89
8
56
16
Tampa, FL
52.84
3
110
17
Irving, TX
52.78
30
11
18
Fort Worth, TX
52.53
27
19
19
El Paso, TX
52.25
18
39
20
Austin, TX
52.19
33
17
21
Orlando, FL
52.19
11
51
22
Hialeah, FL
52.01
4
120
23
Juneau, AK
51.91
61
9
24
Overland Park, KS
51.77
59
7
25
Plano, TX
51.71
46
14
26
Huntington, WV
51.65
77
8
27
Gilbert, AZ
51.58
106
4
28
West Valley City, UT
51.54
25
35
29
Houston, TX
51.23
19
49
30
Boise, ID
51.21
34
21
31
Dallas, TX
50.89
22
48
32
Denver, CO
50.64
23
52
33
Lewiston, ME
50.40
91
5
34
Scottsdale, AZ
50.22
43
30
35
Rapid City, SD
50.19
35
37
36
Irvine, CA
50.15
56
20
37
Brownsville, TX
50.13
17
75
38
Springfield, MO
50.00
21
66
39
St. Petersburg, FL
49.84
65
13
40
Columbia, MD
49.70
68
15
41
Fort Lauderdale, FL
49.45
16
89
42
Jacksonville, FL
49.37
42
43
43
Salt Lake City, UT
48.99
20
88
44
Cape Coral, FL
48.62
51
45
45
Peoria, AZ
48.36
74
24
46
Arlington, TX
48.35
29
81
47
Henderson, NV
48.19
60
36
48
Chesapeake, VA
48.16
66
29
49
Atlanta, GA
48.12
28
87
50
Aurora, CO
48.08
54
46
51
Portland, ME
47.77
52
54
52
Mesa, AZ
47.75
41
72
53
Lubbock, TX
47.70
53
50
54
Nashville, TN
47.47
73
33
55
Billings, MT
47.31
26
105
56
Raleigh, NC
47.15
100
23
57
Tempe, AZ
47.12
93
27
58
Colorado Springs, CO
46.91
55
61
59
Fargo, ND
46.66
62
58
60
Port St. Lucie, FL
46.63
36
97
61
New Orleans, LA
46.29
38
106
62
Nampa, ID
46.16
85
44
63
Garland, TX
46.15
72
55
64
Chandler, AZ
46.08
95
40
65
Santa Ana, CA
45.99
49
95
66
Durham, NC
45.79
116
32
67
Fremont, CA
45.76
123
34
68
Kansas City, MO
45.68
64
73
69
St. Louis, MO
45.65
48
108
70
Gulfport, MS
45.56
45
111
71
Albuquerque, NM
45.33
57
92
72
Baton Rouge, LA
45.29
39
121
73
Anchorage, AK
45.09
99
53
74
Ontario, CA
44.91
80
71
75
Bakersfield, CA
44.66
63
94
76
Phoenix, AZ
44.59
92
63
77
Virginia Beach, VA
44.58
71
85
78
Lincoln, NE
44.57
89
68
79
Shreveport, LA
44.44
44
134
80
Burlington, VT
44.16
50
122
81
Las Vegas, NV
44.11
70
98
82
Las Cruces, NM
43.86
47
137
83
Columbus, OH
43.61
128
57
84
Charlotte, NC
43.60
103
78
85
Chattanooga, TN
43.57
112
74
86
Fort Wayne, IN
43.51
126
64
87
Cincinnati, OH
43.49
117
69
88
Washington, DC
43.31
151
41
89
Cedar Rapids, IA
43.24
118
77
90
Charleston, SC
43.18
110
83
91
Wichita, KS
43.01
83
107
92
Fontana, CA
42.94
152
42
93
Huntington Beach, CA
42.94
96
96
94
Riverside, CA
42.91
81
109
95
Santa Clarita, CA
42.78
94
102
96
Portland, OR
42.71
82
112
97
Glendale, AZ
42.66
121
84
98
Pittsburgh, PA
42.66
170
25
99
Reno, NV
42.66
107
93
100
Oxnard, CA
42.47
125
86
101
Greensboro, NC
42.47
114
90
102
Lexington-Fayette, KY
42.41
136
76
103
Omaha, NE
42.40
104
103
104
Aurora, IL
42.32
115
91
105
Anaheim, CA
42.08
58
146
106
Fort Smith, AR
41.99
142
65
107
Tucson, AZ
41.98
37
160
108
Little Rock, AR
41.93
122
100
109
Rancho Cucamonga, CA
41.83
144
67
110
San Francisco, CA
41.80
79
132
111
Moreno Valley, CA
41.59
142
80
112
Indianapolis, IN
41.56
130
99
113
North Las Vegas, NV
41.53
163
47
114
Warwick, RI
41.41
175
28
115
Mobile, AL
41.38
84
133
116
Seattle, WA
41.13
155
62
117
Richmond, VA
40.96
124
114
118
Baltimore, MD
40.94
148
82
119
Knoxville, TN
40.87
139
104
120
Tallahassee, FL
40.77
101
135
121
Honolulu, HI
40.74
105
130
122
Grand Rapids, MI
40.56
67
150
123
Birmingham, AL
40.54
75
149
124
Nashua, NH
40.49
157
70
125
Huntsville, AL
40.36
88
144
126
Oceanside, CA
40.30
119
129
127
Des Moines, IA
40.30
167
59
128
San Jose, CA
40.23
131
119
129
Jackson, MS
40.19
24
175
130
Louisville, KY
40.14
129
124
131
Newport News, VA
39.90
113
139
132
Chula Vista, CA
39.87
108
143
133
San Diego, CA
39.69
86
155
134
Santa Rosa, CA
39.59
137
128
135
Missoula, MT
39.51
31
172
136
Norfolk, VA
39.47
120
141
137
Fayetteville, NC
39.46
97
148
138
Chicago, IL
38.90
111
153
139
Columbus, GA
38.90
133
140
140
Toledo, OH
38.80
78
163
141
Columbia, SC
38.76
146
127
142
Los Angeles, CA
38.74
76
164
143
Madison, WI
38.66
90
158
144
Sacramento, CA
38.57
138
142
145
Pearl City, HI
38.56
127
147
146
Memphis, TN
38.45
153
118
147
Dover, DE
38.17
177
60
148
Stockton, CA
37.76
135
154
149
San Bernardino, CA
37.75
149
138
150
Long Beach, CA
37.63
102
165
151
Fresno, CA
37.43
134
157
152
Modesto, CA
37.39
160
123
153
Tacoma, WA
37.29
162
125
154
Minneapolis, MN
37.19
171
113
155
Winston-Salem, NC
37.14
109
166
156
Montgomery, AL
36.91
141
156
157
Yonkers, NY
36.57
150
152
158
Garden Grove, CA
36.45
166
136
159
Salem, OR
36.39
173
116
160
Spokane, WA
36.28
174
117
161
Oakland, CA
36.21
169
131
162
Manchester, NH
36.07
132
168
163
Milwaukee, WI
35.62
165
145
164
Akron, OH
35.60
176
126
165
Augusta, GA
35.45
147
159
166
New York, NY
35.38
69
182
167
Glendale, CA
35.20
164
151
168
Boston, MA
34.75
98
179
169
St. Paul, MN
34.72
154
162
170
Vancouver, WA
34.64
179
115
171
Philadelphia, PA
33.68
161
167
172
Detroit, MI
32.91
158
170
173
Jersey City, NJ
32.89
172
161
174
Rochester, NY
32.82
140
176
175
Worcester, MA
32.40
145
177
176
Newark, NJ
30.60
156
181
177
Buffalo, NY
30.56
168
174
178
Wilmington, DE
30.25
159
180
179
Cleveland, OH
30.18
178
169
180
Bridgeport, CT
28.61
180
171
181
Providence, RI
27.32
182
173
182
New Haven, CT
27.19
181
178





Ask the Experts

To expand the discussion about the present and future of Hispanic entrepreneurship in the U.S., we asked a panel of minority business experts to share their thoughts on the following key questions:

  • What are the biggest challenges faced by Hispanic entrepreneurs?

  • Should government authorities create programs or other incentives to encourage Hispanic entrepreneurs? If so, what types of programs or incentives?

  • What tips do you have specifically for Hispanic entrepreneurs interested in starting their own business?

  • In evaluating the best cities for Hispanic entrepreneurs, what are the top five indicators

 


Pradip K. Shukla

Associate Professor of Management in the Argyros School of Business and Economics at Chapman University


What are the biggest challenges faced by Hispanic entrepreneurs?

The biggest challenges faced by Hispanic entrepreneurs are similar to those faced by all entrepreneurs: intense competition, funding startup costs, and time demands required for startups and ongoing ventures. Some Hispanic entrepreneurs lack both knowledge about startup regulatory procedures and don't personally know anyone to mentor them.


Should government authorities create programs or other incentives to specifically encourage Hispanic entrepreneurs? If so, what types of programs or incentives?

Most economists agree that recessions are ended first by new jobs created by small business startups and are then followed by hiring increases at larger firms. It is in the best interest of the economy that government authorities create programs and other incentives to specifically encourage Hispanic entrepreneurs just as programs/incentives exist to encourage female entrepreneurship.

The best programs would be focused on local area resource consolidation such as SBDCs (Small Business Development Centers) at local community colleges and One Stop Startup Resource centers to assist with regulatory forms. For those who require assistance, bilingual services should be considered.


What tips do you have for Hispanic entrepreneurs interested in starting their own business?

Gain work experience in the industry that you plan to start your own business so that you get a more realistic preview of the industry demands. Seek out mentors who can guide you and who can serve as advisors. Use free resources such as SBA services, SCORE chapter workshops and consulting, and resources in the business schools at local colleges and universities. Join groups such as local chambers of commerce, Hispanic chambers of commerce, and network.


In evaluating the best cities for Hispanic entrepreneurs what are the top 5 indicators?

  • Overall growth of the city in population and local economy growth;

  • Good labor pool with skills required of your employees;

  • Close proximity to good colleges and universities;

  • Avoid cities with high housing costs where less discretionary funds are left for purchases after rent or home loan payments;

  • Good transportation systems.

Many larger cities have Hispanic Chambers of Commerce.



Ana Valdez

Executive Director of the Latino Donor Collaborative, Inc


What are the biggest challenges faced by Hispanic entrepreneurs?

Latino owned companies are increasing in number at a rapid rate, the fastest rate of any other demographic in America. However, Latino entrepreneurs face a funding ceiling. The key challenging issue is that national banks provide less loan funding to Latino owned businesses relative to other demographic groups.

Latino owned businesses have the lowest rate of business loans from financial institutions among all other firms. Only 12 percent of Latino businesses can access bank loans compared to 18.4 percent for white, 15.3 percent for Asian, and 14.2 percent for black owned firms. Latino firms also have the lowest number of government backed loans, although Latino business owners say they would like to have them.


Should government authorities create programs or other incentives to specifically encourage Hispanic entrepreneurs? If so, what types of programs or incentives?

Yes, there is a need/opportunity for more financial education initiatives targeting the Latino community. More structured efforts from the banks to attract Latinos as clients and make the community feel more comfortable working with the banking industry is essential.


What tips do you have for Hispanic entrepreneurs interested in starting their own business?

  • Do your numbers: know the market size and the competitors, project your sales;

  • Build your business on the bases of integrity every step of the way: from punctuality to transparency and accountability;

  • Dare to ask for money: private funding, banks, government entities;

  • Keep informed: new products, new methods, new competitors;

  • Engage with business allies, with business organizations, with business private groups;

  • Ignore the naysayers, use your uniqueness to innovate.


In evaluating the best cities for Hispanic entrepreneurs what are the top 5 indicators?

Calculated by funding friendly index using frequency and funding source counts, the top five funding friendly states for Latino businesses are Florida, California, Nevada, Texas and New York.

The current gap between the powerful and constant growth of Latino businesses in America and the lack of funding available is a tremendous growth opportunity for banks and other funders, for Latino owners, and for the American economic growth overall.

Furthermore, the growth achieved by Latino owned businesses has happened without access to Chambers of Commerce, trade associations, non-profit support, the use of governmental business development established systems, etc.

This opportunity gap should help venture capitalists, banks, and other commercial institutions, and nonprofits to engage deeper with the Latino entrepreneur. It should also help policy makers in all fields to empower Latino entrepreneurs for job creation, economic equality, underserved communities support for anti-poverty programs, and the like.

The lack of such initiatives and programs would result in “money being left on the table.” The importance of the Latino entrepreneur for the growth of this country is pure math.


Frank Hoy

Paul R. Beswick Professor of Innovation
& Entrepreneurship at
Worcester Polytechnic Institute

 

What are the biggest challenges faced by Hispanic entrepreneurs?

Money and language. For Hispanic/Latino entrepreneurs with low socioeconomic status, capital for starting and growing ventures is limited, and they may not have access to networks that can channel funds to their ideas.

You probably also know that some business entrepreneurs who refer to themselves as Latino or Chicano or some other label reject the term Hispanic, even though there is a national Hispanic Chamber of Commerce.

Low income is typically associated with low levels of education, compounding the problem of obtaining capital. And discrimination against Hispanics, especially immigrants, is very real in parts of the country.

Many immigrants and residents with limited education, inability to communicate effectively in English restricts access to customers, suppliers, sources of finance, and others. On the other hand, facility with Spanish can be a positive in some markets.


Should government authorities create programs or other incentives to specifically encourage Hispanic entrepreneurs? If so, what types of programs or incentives?

Government programs that provide access to capital and to business training/education can be extremely valuable. The U.S. Small Business Administration and its partner Small Business Development Centers are important services in both categories. Government personnel who are fluent in Spanish are critical. Government agencies can work collaboratively with private sector organizations, such as Hispanic Chambers of Commerce and microlenders, e.g., Accion.


What tips do you have for Hispanic entrepreneurs interested in starting their own business?

  • Focus initially on Hispanic markets, particularly those that match the national origin of the entrepreneur;

  • Join the Hispanic Chamber and other such organizations where members help each other succeed;

  • Show up at business events that are not restricted to Hispanic members such as industry associations, Rotary Clubs, charitable organizations, etc. Networking can prove invaluable;

  • Strategic alliances are key for small businesses today. Can the entrepreneur build a relationship with customers, suppliers and others that is more than a normal business transaction?


In evaluating the best cities for Hispanic entrepreneurs what are the top 5 indicators?

  • Core populations of residents with national origins that match the entrepreneur;

  • Ports that provide easy importation of products from country of origin for first or second generation residents who may have strong contacts in a country of origin that may be able to provide products for the U.S. market;

  • Public and private organizations partnering to assist new venture creation;

  • Proactive capital access;

  • Business oriented local regulation.