An Inside Look at Hispanic Businesses

Karthik Iyer | COO, Claritas

An Inside Look at Hispanic Businesses

Hispanic American entrepreneurs are on fire. Hispanic-owned businesses grew 40.2% between 2012 and 2018 – more than TWICE the 18.8% growth rate of other U.S. firms.

Today, 4.65 out of the 33 million total U.S. businesses are owned by Hispanics. That means that today, 1 out of every 7 American businesses is run by a Hispanic entrepreneur. And these Hispanic-owned firms contribute $700 billion to the U.S. economy each year, according to the U.S. Hispanic Chamber of Commerce. 

There’s no denying that Hispanic businesses have a huge impact on economic growth in the United States today. And if you’re a B2B marketer, targeting Hispanic-owned firms could have a huge impact on your company’s growth too. 

Below are 10 insights about Hispanic businesses pulled from the new Claritas report, The Hispanic Small Business Report: 

1) Hispanic small businesses are twice as likely as other small businesses to earn most or all of their revenue online.  

Do you sell technology or services that are ideal for e-commerce companies? Consider targeting Hispanic small businesses, which are ahead of the curve when it comes to online sales. In fact, more than 36% make most or all of their revenue online – compared to less than 18% of non-Hispanic owned small businesses. 

2)  Hispanic entrepreneurs are younger than the average entrepreneur.

Looking for customers with high lifetime value? More than 70% of Hispanic small business owners are younger than 45, compared to less than 40% of non-Hispanic entrepreneurs. 

3)  Hispanic entrepreneurs are 30% more likely to own home-based businesses. 

Are home-based businesses your target market? Nearly 4 out of every 10 Hispanic entrepreneurs work out of their home – and they’re 30% more likely to own a home-based business than other business segments. 

4)  Hispanic small businesses are more than twice as likely as other businesses to purchase payroll services. 

Hispanics are big buyers of professional services such as payroll. But if you’re selling payroll services to Hispanic small businesses, you’ll want to make sure they have an option to buy online. That’s because Hispanic small business owners are over 50% more likely than other small business owners to purchase payroll services online. Claritas research reveals similar purchasing patterns for other business services, including banking, insurance, travel, telecommunications and other technology products and services.

payroll

                                                     Source: Claritas Small Business Behavior Track Survey 2018
 
5)  Hispanic business owners involve more employees in purchasing decisions.

Tired of trying to sell to C-Suite executives? Try targeting Hispanic businesses, where getting the attention of the C-Suite might not be as vital to closing the sale. 

6)  40% of Hispanic-owned businesses are B2B firms.

If you sell products or services to B2B firms, consider this: 8 out of 10 Hispanic businesses earn at least some of their revenue from B2B sales. And 40% of Hispanic firms report that most or all of their revenue comes from B2B sales. 

7)  Hispanic business owners prefer Facebook, YouTube and Instagram when researching suppliers. 

Loyal Hispanic customers are more likely to recommend trusted brands to others – particularly financial and technology products. So creating a robust influencer marketing strategy that focuses on Facebook, YouTube and Instagram may boost engagement from Hispanic entrepreneurs.

site apps

                                                       Source: Claritas Small Business Behavior Track Survey 2018
 
8)  In areas such as the West South Central United States, 25% of businesses are Hispanic-owned.

Do you sell to businesses in Texas, Oklahoma, Louisiana or Arkansas? More than 1 million companies in those states – 1 out of every 4 businesses – are now run by Hispanic entrepreneurs. 

9)  Hispanic businesses look for suppliers that put the customer first.

While Hispanic companies do consider price in their buying decisions, they tend to focus less on price than other businesses. Hispanic-owned business prefer suppliers that put the customer first – and offer services such as flexible contracts and better online sales support.

10) Hispanics are rewriting the rules of American business.

The 64 million Hispanics living in the United States today are not only changing the face of the American consumer – they’re changing the face of American businesses too. 

The number of Hispanic-owned businesses has more than doubled since 2007, and young Hispanics are still launching new businesses in droves. These entrepreneurs are better educated, more technologically savvy and more successful than traditional stereotypes might suggest. 

Click here to see the full Hispanic Business Report

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