With the rise in Latino owned businesses outpacing other groups within the U.S. economy it is interesting to see which cities are the best for Latino entrepreneurs to start a business in.
The coming decades are sure to see a huge contribution from the Latino community. According to one report, not only is this demographic expected to make up more than 25 percent of the U.S. population by 2050 — translating into large buying power — this group is also creating businesses at 15 times the national rate. So where is all this expansion taking place?
The prime U.S. cities for Latinos have long been New York, Miami, Chicago and Los Angeles. The Los Angeles metropolitan area alone has more than 5 million Latinos, including an estimated 1 million undocumented immigrants. Yet it no longer is necessarily the best place for them, ranking only a middling 32nd in our survey. L.A.’s once thriving industrial economy has been in a secular decline, and in the process, thousands have lost employment. At the same time, construction work has been slow, another traditional source of employment. High housing costs have also put homeownership out of reach. A 2013 Fannie Mae study found that Latinos place greater emphasis on homeownership than the rest of the population.
In California, Riverside-San Bernardino is a good place for Hispanics — lower housing costs and decent job growth — characterize most of the metropolitan areas that lead the list of areas where Hispanics have been doing better. Not surprisingly, Latinos are also doing very well in a number of Texas cities.
Identifying where Latinos are going, and doing well, is critical not just for them but the future of the country. As the Hispanic population continues to increase it will become more relevant to know what areas of the country provide the best economic environment for Latino owned businesses.