Across the United States, Hispanic‑owned small businesses are experiencing a surge that dwarfs the growth of the broader small‑business sector. According to a Brookings analysis, Latino‑owned firms are expanding by 7.7% each year, a rate that is roughly 17 times faster than the national average for all small businesses.
Economic impact and historic contribution
A joint report from California Lutheran University and the UCLA Health Center for the Study of Latino Health and Culture estimates the total economic contribution of U.S. Latinos at $4.4 trillion—equivalent to the fourth‑largest GDP in the world. For four consecutive years this figure has exceeded the output of economies such as India, the United Kingdom, France and Japan.
From 2007 to 2023, Latino‑owned small businesses grew 158%, compared with a 24% increase for other small firms. A 2025 Stanford Graduate School of Business survey found that Latino employer‑owned businesses rose 44% between 2018 and 2023, outpacing non‑Latino employer businesses by an average of 4.5% per year.
State‑level highlights
State data from the 2023 U.S. Census Bureau Annual Business Survey shows that Hispanic‑owned firms increased in 48 of the 50 states and in nearly 90% of major metropolitan areas. Utah led the nation with a 145% jump in Latino‑owned small businesses from 2018 to 2023, followed by North Dakota (140%), Idaho (130%) and Minnesota (114%).
In 2023, Hispanic‑owned businesses accounted for 8.4% of all firms with employees (about 496,000 businesses) and 17.5% of non‑employer businesses (approximately 5.3 million). Collectively, these firms generated more than $970 billion in revenue and posted higher profitability than other demographic groups, according to Stanford data.
Industry concentration and emerging leaders
Construction, hospitality and professional services are the top sectors for Latino entrepreneurs. Brookings reports that 18.8% of Latino employers own construction firms, adding over 37,500 companies—a 75% increase from 2017 to 2022. The restaurant, catering and hospitality sector accounts for about 12% of Latino‑owned firms and grew 37% in the same period.
Entrepreneurs such as Marcelo Cardenas, founder of Miami‑based Luisa Coffee, illustrate the diversification of Latino business interests. Cardenas, a Chile‑born MBA with a background in naval engineering and fintech, built a multi‑brand coffee operation from the ground up.
Professional, scientific and technical services represent the third‑largest concentration, with 10.9% of Latino entrepreneurs operating in this space. Growth in this sector was 48% over five years, driven by a surge in highly educated Hispanic professionals—college‑educated Latinos grew at a rate more than three times that of non‑Latinos between 2010 and 2024.
Family‑focused growth and future outlook
Business consultant Viridiana Ponce notes a generational shift: daughters are increasingly stepping into businesses founded by their mothers, seeking capital, technology and strategic partnerships. This family‑centric expansion strengthens local economies, creates jobs, and builds wealth within communities.
Artificial intelligence is also playing a role. About 20% of Hispanic‑owned small firms report using AI tools to improve products, services and employee training, according to the Stanford report.
As Hispanic Heritage Month (Sept. 15 – Oct. 15, 2026) celebrates Latino contributions, these data underscore the vital role Hispanic‑owned small businesses play in job creation, economic resilience and community vitality across the nation.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
