Hispanic-owned businesses are growing 17 times faster than the national average
At the state level, we’ve seen growth in the number of businesses owned by the Hispanic community in 48 out of 50 states and in nearly 90% of major metropolitan areas. According to the most recent 2023 U.S. Census Bureau Annual Business Survey data, the state of North Dakota saw a 167% increase in Latino-owned small businesses. This growth rate was exceeded by Vermont (183%) and Maine (216%).
Hispanic-owned companies accounted for 8.4% (496,000) of businesses with one or more employees and 17.5% (5.3 million) of non-employer businesses in 2023, according to U.S. Census Bureau data released in 2025.
Altogether, Hispanic-owned businesses earned more than $970 billion in 2023. They outperformed other demographics in profitability, and they were more likely to include sustainability measures, according to 2025 data from a Stanford Graduate School of Business survey.
The impact of Latino-owned business growth
“One of the biggest shifts I’m seeing is that we are not simply seeing more Hispanic-owned businesses being started,” says Viridiana Ponce, a Latina business consultant and financial educator. “We are watching a new generation redefine what it means to be the CEO of a Latino-owned business.”
As the owner of VP Consulting, she has spent more than a decade helping Latina entrepreneurs, particularly in the food industry, build profitable, fundable businesses with a focus on sustainable growth.
“I work with many immigrant and family-owned food businesses, and increasingly, I see daughters stepping into businesses their mothers built,” Ponce says. “They are raising prices, seeking capital, entering pitch competitions, bringing in technology, outside resources and consultants, and asking harder questions about business and growth.”
This shift illustrates the potential impact that Latino entrepreneurs can have on both our economy and our communities.
“When Latino/a-owned businesses become financially strong, the impact extends far beyond one owner,” Ponce says. “We hire within our communities, involve the next generation, support other local businesses, mentor other entrepreneurs, contribute to our local economies, and create wealth within our families.”
The fastest-growing sectors for Latino-owned businesses
The rise in Latino business owners touches all industries, but especially the following sectors, according to a Brookings analysis of Census Bureau data:
1. Construction
According to Brookings, 18.8% of Latino employers own businesses in the construction industry. They’ve added more than 37,500 companies during this period, for an increase of 75% from 2017 to 2022.
2. Restaurants, catering, food services and hospitality
About 12% of Latino-owned businesses are in the restaurant, catering, food service or hospitality industry, according to Brookings, making it the second most common industry for new Hispanic-owned businesses. This sector saw a 37% increase from 2017–2022.
One entrepreneur in this industry is Marcelo Cardenas, who built a specialty coffee company called Luisa Coffee in Miami. Cardenas, who was born in Chile, says he built his portfolio of coffee brands from scratch, with no prior café or hospitality experience.
“I entered the coffee business from scratch a few years ago and built it into a multi-brand operation, largely solo with part-time help for events,” he says. “My background is an MBA plus naval mechanical engineering and fintech entrepreneurship in Latin America.” He also added that many Hispanic entrepreneurs are driven to build across sectors rather than concentrate on one business.
3. Professional and business services
The industry with the third-highest concentration of Latino entrepreneurs is in professional, scientific and technical services, such as consulting or IT, at 10.9%. This group saw growth of 48% over a five-year period.
One growth driver in this industry is the rise in highly educated Hispanic professionals with business experience and valuable skills. Latinos earned college degrees at a rate more than three times that of non-Latinos between 2010 and 2024, for an increase of 144.5% in college graduates, according to the Latino GDP report.
“After a corporate layoff in my 50s and nine months of unsuccessful job searching, I started my own business from scratch,” says Hady Méndez, who owns a professional services company. She’s a Latina entrepreneur and founder of Boldly Speaking LLC.
“I was looking for work, and I finally decided, after a moment of clarity, that I had lots of skills that were highly transferable and that people would be willing to pay for,” she said.
Méndez now offers business consulting and coaching services that help other professionals reach their fullest potential in corporate and other settings.
How Latino business owners can protect and grow their businesses
Although business formation is the first step, growth can’t follow without strategic planning. For example, Méndez says that partnerships are a key to her business growth, helping her find others who are aligned with her vision and the impact she wants to have.
For many Hispanic business owners, AI is a critical component of their growth strategy, with 20% using the technology to improve their products and services and help their employees skill up, according to the Stanford report. Many small businesses from all demographics also use AI to identify which business insurance coverages can protect their newfound success from some of the most common risks that small businesses face.
Business insurance is often required for small businesses to grow. It can be necessary to obtain professional licensing, rent a commercial building or land important client contracts. Even when it’s not required, business insurance could offer a protective shield against unexpected costs that can quickly drain a business’s reserves. Some of the most common types of business insurance can help cover these costs include:
General Liability insurance
General liability insurance is often the first coverage a small business owner buys. It can help with costs when a non-employee is hurt at your place of business or if you or your employees damage someone else’s property. Landlords commonly require proof of general liability insurance (also called commercial general liability) when signing a business lease, often in the form of a certificate of insurance (COI).
General liability is a common coverage for business owners in industries like:
- Construction
- Retail
- Food and beverage
- Professional services
- Janitorial and cleaning services
- Sports and fitness
Workers’ Compensation insurance
Workers’ compensation insurance could help cover medical costs, lost wages and other expenses if an employee is hurt on the job. Many states require workers’ compensation insurance for businesses with employees. Sometimes, hiring even just one employee triggers this requirement.
Business owners in the following industries often need workers’ compensation coverage:
- Restaurants and food service
- Construction
- Retail and e-commerce
- House cleaning services
Commercial Property insurance
Commercial property insurance could help cover costs if your business space or its contents that you use for work suffers damages from a covered event like a fire, theft or vandalism. It could also help with costs related to an interruption of your business income.
Commercial property coverage is often necessary for businesses with equipment or those that own or rent commercial space, such as:
- Restaurants, bars and coffee shops
- Stores and boutiques
- Gyms, spas and salons
- Professional offices
Professional Liability insurance (E&O insurance)
Professional liability insurance, which may be called errors and omissions (E&O) insurance in some professions, could help protect you financially if you make a business mistake that costs a client money. It can help with costs, including legal defense costs, if you’re accused of professional negligence or omission, such as missing a deadline or a miscalculation.
Many types of business owners could benefit from professional liability insurance, such as:
- Business consultants
- Accountants and other financial professionals
- Real estate agents
- Engineers
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