hispanic economy 2005 intransition

THE U.S. HISPANICECONOMY IN TRANSITION:Facts, Figures, and Trends

TABLE OF CONTENTS

INTRODUCTION ..................................................................................................................................................1

EXECUTIVE SUMMARY................................................................................................................................3

Part I: POPULATIONTHE LARGEST MINORITY: Hispanics Are the Fastest-Growing Ethnic Group ..............................................12SECOND-GENERATION WAVE: Native-Born and Foreign-Born Consumers ................................................13TOP STATES: The Geography of Hispanic Settlement ........................................................................................14FROM AROUND THE WORLD: Country of Origin Defines Subgroups ..........................................................16CLOSE TO HOME: Hispanics Tend to Settle Near Their Country of Origin ....................................................17

Part II: HOUSEHOLDBIG FAMILY: Hispanics at Home: Demographic Trends ......................................................................................20INSIDE THE HOUSE: Ethnic Subgroups Differ by Age......................................................................................21WEDDINGS WIN: Marriage is Dominant Household Type ................................................................................22DIVERSITY AT HOME: Comparison of Households by Ethnicity ....................................................................23IN THE PEW: Assimilation Changes Religious Profile..........................................................................................24

Part III: LABOR FORCETHE WORKFORCE PIE: Hispanics Account for Nearly One-Third of New Workers ....................................28UNEMPLOYMENT GAP NARROWS: Gender, Geography Impact Opportunity ............................................29THE ‘G’ FACTOR: First Generation Fares Better Since 2001 ..............................................................................30FINDING WORK: Highs and Lows of Labor-Force Participation........................................................................30CAREER LIFE CYCLE: Hispanic Workers Skew Young ......................................................................................31LEARNING TO EARN: Education Yields Higher Income....................................................................................32HOT JOBS: Sales and Service Account for Nearly Half of Hispanic Employment ............................................32SKILLS FOR THE 21st CENTURY: Employment Growth Since 2000 ............................................................34A STRIKING SURPRISE: Hispanic Employment Surges Despite Slow Economy............................................34

Part IV: CONSUMER MARKETSGROWING DOLLARS: Hispanic Consumers as Economic Force ....................................................................40PURCHASING POWER: Disposable Income Continues to Climb ....................................................................41MELTING POT MIX: Hispanics Fuel Minority Purchasing Power ......................................................................42MONEY ON THE MAP: California, Texas Concentrate Hispanic Dollars ........................................................42SPENDING RISE: Hispanic Consumers Are Buying More ................................................................................44HOT ON THE PLATE: Hispanics Spend More on Food ....................................................................................44REVVED UP PURCHASES: Spending on New Vehicles Grows ......................................................................46AFFLUENT DRIVERS: Leasing and Luxury Autos Popular Among Upscale Hispanics ..................................47HOME SWEET HOME: Hispanics Buy More Household Items ........................................................................48EXPANDING PORTFOLIOS: Rising Hispanic Net Worth Draws Finance Industry’s Attention ....................49

IIITHE U.S. HISPANIC ECONOMY IN TRANSITION

Part V: WEALTHTHE AFFLUENT CLASS: Hispanic Household Income Levels Rising ..............................................................52MIDDLE-CLASS GROWTH: Crossing the Poverty Line ....................................................................................53AGGREGATE INCOME: A National Pie, Sliced by State ....................................................................................54ASSETS AND HOMEOWNERSHIP: Trend Toward Diversification, Financial Planning ..............................55AGGREGATED NET WORTH: Hispanics Gain Cumulative Strength ..............................................................58THE GEOGRAPHY OF WEALTH: Income Distribution Across States, Major Cities ......................................59

DALLAS-FORT WORTH: Matching the National Profile ..........................................................................60LOS ANGELES: Hispanics Find California Gold ......................................................................................60MIAMI-FORT LAUDERDALE: Upscale in South Florida ..........................................................................61NEW YORK: The City of Highs and Lows ....................................................................................................61CHICAGO: Big in the Middle ........................................................................................................................62HOTTEST SPOTS: Top ZIP Codes by Hispanic Income ..........................................................................62

Part VI: BUSINESS AND ENTREPRENEURSHIP DRIVING THE HISPANIC ECONOMY: Entrepreneurial Engine for Growth ................................................66MINORITY-OWNED FIRMS: Growing Rapidly in Number, But Revenues Still Lag ........................................66MOSTLY SOLE PROPRIETORSHIPS: Legal Organization of Hispanic Companies ....................................67EMPLOYMENT: Large Firms Hire More ..............................................................................................................68LEADING INDUSTRIES: Service Sector Most Prevalent ..................................................................................69IN THE SOUTH, IN THE WEST: Geography of Hispanic Entrepreneurship ..................................................71TOP STATES TODAY: Big Markets for Hispanic Companies ............................................................................71OWNERSHIP VS. RECEIPTS: Ethnic Breakdown of Hispanic-Owned Firms ..............................................72A LITTLE HELP FROM THE FEDS: SBA Program Develops Hispanic Firms ................................................72SBA LOANS: Borrowers Multiply, Dollars Fall ..................................................................................................72GROWTH AHEAD: Service Sector Leads Future of U.S. Hispanic Economy ....................................................74INDUSTRIAL STRENGTH: Construction, Retail Sectors Expand ....................................................................75MULTIPLYING MONEY: Year-Over-Year Revenue Growth Adds Up ................................................................76NEW ENTREPRENEURS: Women Own Nearly One Third of Hispanic Firms ..............................................77

Part VII: EDUCATIONHISPANIC HUMAN CAPITAL: Education Drives Economic Development ....................................................80A MARKED IMPROVEMENT: Graduation Rates on the Rise ..........................................................................80EDUCATION BY BIRTH: Native-Born Hispanics More Likely to Graduate than Foreign-Born ....................81THE UNDER-EDUCATED: Immigrants Outperform Natives in the Workforce ..............................................82APPROACHING THE NORM: Education Improves for Second and Third Generations ................................82UP THE IVORY TOWER: Hispanics Pursue College Degrees ............................................................................85MAJOR DECISIONS: Uptick in Business Degrees ..............................................................................................86THE SCHOOL-INCOME LINK: Rising Education Means More Disposable Dollars ......................................87

TABLE OF CONTENTS

IV THE U.S. HISPANIC ECONOMY IN TRANSITION

Part VIII: YOUTHTHE YOUNG MARKET: The Hispanic Demographic Wave ..............................................................................90A BIGGER PIECE OF THE PIE: Youth Market Growing Faster Than U.S. Average ......................................90IMMIGRANTS NO MORE: Rise of the Second Generation ..............................................................................90CONSUMER BEHAVIOR: Hispanic Youth Spend on Clothes, Toys ................................................................92MOVIES, MUSIC, BOOKS: Media Consumption Among Young Hispanics ..................................................93TECHNOLOGY GAP: Hispanic Youth are Closing the “Digital Divide” ............................................................95

Part IX: POLITICSTHE HISPANIC ELECTORATE: A Rapidly Growing Constituency ..................................................................98PARTISAN POLITICS: Hispanics in Play for Both Parties ................................................................................98PARTIES AND SUBGROUPS: Nativity, Country of Origin Correlate With Affiliation ................................99THE ISSUES: Education and Economy Top Priorities ......................................................................................99SOCIAL HOT BUTTONS: Voters Split on Abortion, Same-Sex Marriage ......................................................101THE 2000 HISPANIC VOTE: Non-Citizens Skew Official Numbers ............................................................101POLITICAL EDUCATION: Hispanic Voting Increases With More Education ................................................102VOTER DEMOGRAPHICS: Age and Gender Impact Participation ................................................................103THE TURN-OUT QUESTION: Hispanics Find Difficulty in Voting ..............................................................104LINKING ECONOMICS TO POLITICS: Two Decades of Change ................................................................104THE CRITICAL HISPANIC VOTE: Grow National, Think Local ..................................................................105

Part X: CULTURE, LANGUAGE, AND MEDIALIVING IN TWO CULTURES: Acculturation and Assimilation ......................................................................108GENERATIONAL SHIFT: Children of Immigrants Move to Mainstream ......................................................108A HYBRID LIFESTYLE: Hispanics Tend to Acculturate More Than Assimilate ............................................109BEYOND STEREOTYPES: The New Hispanic Consumer ............................................................................110LANGUAGE: English Dominates ........................................................................................................................110LEARNING CURVE: Age, Nativity Correlate to Language Adoption ..............................................................111PURCHASING POWER: Language Determines Disposable Dollars ..............................................................112MEDIA USAGE: English Usage Accelerating ....................................................................................................113ADVERTISING: Spending Grows in All Media ..................................................................................................114TOP MARKETS: Media Consumers Cluster in Metro Areas ............................................................................115TOP 50 ADVERTISERS: Biggest Spenders: Consumables, Autos, Food, Retail ............................................115

ABOUT HISPANTELLIGENCE ..........................................................................................................117

TABLE OF CONTENTS

VTHE U.S. HISPANIC ECONOMY IN TRANSITION

15THE U.S. HISPANIC ECONOMY IN TRANSITION

As the U.S. Hispanic economy continues to solidify its

growing influence in the 21st century, the ripple effects

already have begun to profoundly alter the nation’s

political, social, cultural, and economic structures.

The U.S. Hispanic Economy in Transition: Facts, Figures,

and Trends provides a comprehensive examination of the

quantitative measures of this market and its qualitative

characteristics, as well as an interpretation of its expanding

impact and implications for the nation’s future.

From academics, marketers, and investors to govern-

ment and elected officials and corporate executives, every-

one has a stake in understanding the broad evolution cur-

rently under way. The chapters ahead offer a wealth of

data that provide an insightful, in-depth look at the com-

plex forces shaping the Hispanic economy.

Key among these complexities is the shifting composi-

tion of the Hispanic population. No longer simplydriven by sheer volume – Hispanics now accountfor 13.7 percent of the total U.S. population –this community’s new dynamics hinge on emerg-ing second and third generations, native- andforeign-born differences, and broad geographicgrowth. In such an evolving environment, corporate

strategies targeting increasingly affluent, second-genera-

tion Hispanics are emerging as critical to securing

growth and remaining competitive.

As this population grows and matures, its structure is

changing in almost every way, from educational levels and

labor force composition to household characteristics and

accumulation of wealth. It is these evolving factors that

drive the increasing influence of Hispanics in U.S. con-

sumer markets.

Hispanics account for over 13 percent of the

U.S. labor force and are expected to increase tonearly 20 percent by 2030. In addition, higher-pay-

ing management and professional occupations are the

fastest-growing job categories for Hispanics, propelled

by growing educational attainment. All of this comes as

Hispanic employment has grown more than 16percent since 2000, while overall U.S. employ-ment has barely grown 2 percent.

While Hispanic educational achievements have

remained relatively steady, they are slowly closing the edu-

cational gap with non-Hispanics with each successive gen-

eration. Educational gains will play a key role in today’s

global economy as Hispanics boost their influence and

burgeoning purchasing power. So far, Hispanic purchasing

power has increased at a compound annual growth rate of

7.5 percent, more than twice as fast as the 2.8 percent

growth for the total U.S. purchasing power. Hispanicpurchasing power reached $700 billion in 2004and is poised to surge to $1 trillion by 2010.

This strong domestic economic force represents oppor-

tunity for companies that can grasp the dynamics of the

emerging Hispanic market, as well as a challenge for those

that fail to move quickly in an increasingly competitive

climate as corporations vie to tap into the rising affluence

of the Hispanic economy.

The more traditional view of Hispanics as a growing

consumer force also has begun to broaden to a savings

and investing force. The net worth of U.S. Hispanicssurpassed $534 billion in 2000, up more than 30percent in two years. Although Hispanics concentrate

most of their portfolio in homeownership (accounting

for nearly 50 percent of household net worth), they are

increasingly investing in interest-earning accounts,

INTRODUCTION

The U.S. Hispanic Economy in Transition provides an insightful, in-depth look at the complex forces shaping the Hispanic economy.

IRAs, and 401(k) plans.

Driving the increased affluence, in part, is Hispanic

entrepreneurship. Last year, U.S. Hispanics owned nearly 2

million businesses generating total revenue of $273.8 bil-

lion – figures that are expected to grow to 3.2 million and

$465.6 billion, respectively, by 2010. As Hispanic-owned

companies mature, many have begun to enter the “mid-

dle-market” stage, facing one of the key challenges for

growing companies: access to capital. For many sectors,

this potential growth in Hispanic-owned companies,

together with their increasing need for capital, represents

an expanding and powerful opportunity.

Looking towards the future, new generations of

Hispanics will force transitions in the U.S. econ-omy. Hispanic youth now account for more than 34percent of the total U.S. Hispanic population andmore than 18 percent of the total U.S. youth popu-lation. More than 86 percent of those have been born in

the United States, and although they may retain many cul-

tural traits from their parents, they will be English-domi-

nant. By 2020, Hispanic youth are expected to increase to

more than 23 percent of the total U.S. youth population.

With the maturation of this segment comes a shift in

the critical component of cultural identity, which has

served to shape broad aspects of economic, marketing,

and political perspectives on the market. Now, The U.S.

Hispanic Economy in Transition finds indications that

acculturation – maintaining a native culture while acquir-

ing a new one – rather than assimilation – replacing a

native culture with a new one – is ensuring Hispanic

youth remain a separate and distinct economic and politi-

cal force for years to come.

Ultimately, exactly how all of these complex forces will

shape and define the emerging structure of the U.S.

Hispanic economy over the next several years will affect a

broad swath of national public policies from access to

capital and education to diversity in the workplace, gov-

ernment procurement, and professional advancement.

The growth, evolution, and dynamic reality of the U.S.

Hispanic economy are clear. In the chapters ahead, we

offer the qualitative and quantitative information needed

to provide insight into its course for the future.

Juan B. Solana

Santa Barbara, California

March 2005

INTRODUCTION

16 THE U.S. HISPANIC ECONOMY IN TRANSITION

ACKNOWLEDGMENTSThe U.S. Hispanic Economy in Transition was written and produced by HispanTelligence®, the research division

of Hispanic Business Inc.® (HBI), but a resource of this magnitude could not have been possible without the

collaboration of a broad team.

For more than a year, Dr. Juan Solana, head of HispanTelligence, has directed research and completion of the

publication. During preparation of the manuscript, vital contributions were made by Judi Erickson, who edited

and managed the project. Key editing and additional contributions were made by Joel Russell and Nancy Lackey

Shaffer of HBI’s editorial team. Kenneth Whitney, an HBI creative director, designed the layout and numerous

charts and tables as well as the cover. Vaughn Hagerty, the magazine’s division director, reviewed early manu-

scripts and allocated significant resources to the effort.

Special thanks go to HBI Business Economist J. Tabin Cosio and HBI Business Analyst Veronica Spadoni, who

researched and prepared the manuscript. Additional research was provided by Senior Research Assistant Cynthia

Márquez and Research Supervisor Michael Caplinger.

Finally, thanks go to HBI CEO and publisher Jesús Chavarría, who provided long-standing expertise in the

market, reviewed and commented on the final manuscript, and supported the project throughout the process.

age 3.4 persons, with 1.6 of those being wage earners, while

the typical non-Hispanic household has 2.4 persons of

whom 1.3 are wage earners.iii And while nearly a third of all

Hispanic households have five or more people, only one

tenth of non-Hispanic households fall into that category.

Also, Hispanic households contain more young peo-

ple than non-Hispanic homes. While 34 percent of

Hispanics are younger than 18, only 31 percent of

African Americans and 25 percent of the total U.S. pop-

ulation are in the same age range.

Young, large families determine much of Hispanic

consumer behavior. Demographics indicateHispanics will become an increasingly importantsegment in the youth market, and as they mature, in

big-ticket product categories such as automotive, finan-

cial services, housing, and family entertainment.

INSIDE THE HOUSEETHNIC SUBGROUPS DIFFER BY AGE

Distinct age differences emerge among Hispanic sub-

groups. More than 20 percent of Cubans are 65 or older,

while a scant 4 percent of Mexicans are in that age

HOUSEHOLD


0

20

40

60

80

100

Other Hispanics

Central andSouth

American

CubanPuerto RicanMexican

67.7

28.1

Under 18 years 18 – 65 years 65 years and over

57.8

62.8

37.1

58.9

4 6.6 22.6 4.2 6.3

30.6

19.6

60

33.7

Per

cent

age

THE HISPANIC YOUTH BOOMVarious Subgroups of Hispanic Population, by Age

Source: U.S. Census Bureau: Table 2: Selected Age Groups for the Population by Raceand Hispanic Origin for the United States: July 2003.

0

10

20

30

40

50

Other Hispanic

Central andSouth

American

CubanPuerto RicanMexican

0

24.7

29.0

42.7

29.427.6

Age

MEXICAN YOUTH MOVEMENTMedian Age, by Hispanic Origin Type

Source: U.S. Census Bureau, Current Population Survey, March 2002, Ethnic andHispanic Statistics Branch, Population Division.

HISPANIC HOUSEHOLD PROFILEAverage Number of People: 3.5

Average Number of People Age 18 or Less: 1.2

Percent of Family Households: 81.1%

Percent of Hispanic Pop. (Age 15+) Married: 55%

Percent Owning Home: 47.5%

Average Income: $44,468

Source: U.S. Census Bureau, Current Population Surveys.

bracket. On the other hand, 37 percent of Mexicans and

31 percent of Puerto Ricans are younger than 18, com-

pared with just 20 percent of Cubans.

Similarly, Mexicans have a lower median age of 24.7,

while Cubans have a median age of 42.7, much higher

than the median age of 35.9 of the total U.S. population.

WEDDINGS WIN MARRIAGE IS DOMINANT HOUSEHOLD TYPE

Nearly 68 percent of U.S. Hispanic households are

headed by married couples. Among non-Hispanic

whites, the corresponding figure is 82 percent, while

among African Americans it is 48 percent. About 43

percent of African-American households, 23 percent of

Hispanic households, and 13 percent of non-Hispanic

white households are headed by single women. In all

ethnic groups, it is much more common for women

than for men to be sole household heads.

Among Hispanic subgroups, Puerto Ricans have the

smallest percentage of households headed by married

couples and the greatest proportion headed by females

with no spouse present. Cubans have the greatest per-

centage of households headed by married couples and

the lowest percentage of either females or males as sole

household heads.

HOUSEHOLD


0

20

40

60

80

African American

Hispanic

Non-Hispanic White

Male HouseholderFemale HouseholderMarried Couple

0

82

68

48

43

23

13

996

Per

cent

age

MOM AND/OR DADHouseholds, by Ethnicity and Family Type

Source: U.S. Census Bureau, Current Population Survey, March 2002, PGP-5.

0

10

20

30

40

50

60

70

80

Married couple

Male householder, no spouse

Female householder, no spouse

Central andSouth Americans

CubansPuerto RicansMexicans

52

10

30

70

38

108

75

17

9

24

67

Per

cent

age

Source: U.S. Census Bureau, Current Population Survey, March 2002, PGP-5.

DIVERSE HOUSEHOLDSHouseholds, by Ethnicity and Family Type

Nearly 68 percent of U.S. Hispanic households are headed bymarried couples.

currently accounts for 8.5 percent of total U.S. disposable

income and will grow to almost 11 percent by 2010.

The growth of Hispanic spending power continues a

trend that began in the mid-1980s. While the growth rate

of Hispanic purchasing power is expected to slow slightly

in the coming years, projections for 2010 should still

reflect an increase of more than 40 percent over 2001.

MELTING POT MIXHISPANICS FUEL MINORITY PURCHASING POWER

The Minority Business Development Agency (MBDA)

estimates total disposable personal income of minorities

in the United States will reach $2 trillion by 2010, an

increase of 51 percent from 2000. During the same

period, U.S. Hispanic purchasing power is expected to

rise by $491 billion, which would account for nearly 73

percent of the total increase in the purchasing power of

U.S. minorities this decade.

By 2010, minorities will control one fourth of the

purchasing power in the U.S. economy, according to

MBDA estimates. As the 21st century progresses, the

income disparity between minorities and the U.S. norm

is also expected to decrease. Hispanic consumer prefer-

ences will be a major factor in the diversity-based U.S.

economy of the 21st century.

MONEY ON THE MAPCALIFORNIA, TEXAS CONCENTRATE HISPANIC

DOLLARS

California has $157.6 billion in Hispanic purchasing power,

accounting for more than 22 percent of the total for all U.S.

Hispanics. Texas ranks second with $84.8 billion. Together,California and Texas account for more than 34 per-cent of all Hispanic purchasing power and nearlyhalf of the entire U.S. Hispanic population.

Additionally, employment rates for Hispanics in

California and Texas are generally higher than in other

states. Recent Bureau of Labor Statistics data show

64.3 percent of California-based Hispanics and 62.6

percent of Texas-based Hispanics are employed (see

CONSUMER MARKETS


U.S. Hispanic purchasing power is expected to rise by $491 billion, which would account for nearly 73 percent of the totalincrease in purchasing power of U.S. minorities in this decade.

HISPANIC PURCHASING POWER FUELS INCREASESU.S. Minority Purchasing Power ($B): 2000-2010

U.S. Minorities U.S. Hispanics Hispanic as a % of Minority Purchasing Power

2000 $1,329 $564 42.44%

2005 $1,649 $768 46.57%

2010 $2,003 $1,055 52.67%

Purchasing Power Increases Hispanic as a % of Minority Increase

2000-2005 $320 $204 63.75%

2005-2010 $354 $287 81.07%

2000-2010 $674 $491 72.85%

Source: HispanTelligence, “U.S. Hispanic Purchasing Power: 1978-2010,” May 2004; and Minority Business Development Agency, “Minority Purchasing Power: 2000-2045,” September 2000.

THE AFFLUENT CLASSHISPANIC HOUSEHOLD INCOME LEVELS RISING

Robust immigration and high fertility rates increased

the number of U.S. Hispanic households from 2.7 mil-

lion in 1972 to 11.3 million by 2002. At the same time,

mean household income among Hispanics showed an

impressive growth rate of 36.5 percent in real dollars.

Although large numbers of new immigrants entered the

labor market at low wage levels, the mean income ofHispanic households increased from $32,873 in1972 to $44,887 in 2002i.

A closer look at the data shows Hispanics moving up

through the income brackets. The percentage of house-

holds in the lower-income bracket ($34,999 or less)

decreased from 64.3 percent in 1972 to 52.1 percent in

2002. On the other end of the spectrum, the proportion

of Hispanic households earning more than $100,000

increased from 1.5 percent to 7.2 percent, while the

middle-income bracket ($35,000 to $99,999) expanded

from 34.2 percent to 40.7 percent.

Aside from income growth, wealth building involves

the accumulation of assets such as home equity and

securities. Hispanics have made progress here, too,

WEALTH


Year 2002

Year 1982

Per

cent

age

ofH

ispa

nic

Pop

ulat

ion

0

5

10

15

20

$100,000 and over

$75,000 to $99,999

$50,000 to $74,999

$35,000 to $49,999

$25,000 to $34,999

$15,000 to $24,999

$10,000 to $ 14,999

$5,000 to $9,999

Under $5,000

Y

THE MOVE TO UPPER AND MIDDLE INCOME CLASSESDistribution of Income for Hispanic Households, 1982 – 2002

Source: U.S. Census, “Money Income in the United States:2003” Table HINC-02.

INCREASING WEALTHHispanic Household Income Brackets

Income Brackets,

No. of Hispanic as a % of All Hispanic Households

Year HHs (millions) Median Income Mean Income $0-$34,999 $35,000-$99,999 $100,000+

2002 11.3 $33,103 $44,887 52.1% 40.7% 7.2%

1992 7.2 $28,384 $36,204 61.1% 35.0% 3.9%

1982 4.1 $27,078 $33,419 62.9% 34.9% 2.2%

1972 2.7 $28,384 $32,873 64.3% 34.2% 1.5%

Source: HispanTelligence® Calculations from U.S. Census. “Money Income in the United States: 2003.”

GROWTH AHEADSERVICE SECTOR LEADS FUTURE OF U.S.

HISPANIC ECONOMY

Hispanic-owned companies represent an increasingly

important component of the U.S. enterprise economy.

HispanTelligence estimates that the number of

Hispanic-owned firms soared to 2 million in 2004,

with business receipts of $273.8 billion. The figures

represent an 82 percent increase in the number of

Hispanic-owned firms and an 81 percent increase

(inflation-adjusted) in business receipts since the most

recent Census Survey of Minority-Owned Business

Enterprises in 1997.

The Hispanic economy is poised to outperform the

general economy for the next several years. With their

increasing population and rising levels of education,

BUSINESS AND ENTREPRENEURSHIP


The Hispanic economy ispoised to outperform the general economy for the nextseveral years.

SERVICE SECTOR STRENGTHGrowth of Hispanic-Owned Companies

% of Total Firms2000 2004 2010 No. of New Firms 2000-2010 % of Total Increase

Agricultural 4.7% 5.0% 5.4% 100,754 6.1%

Construction 12.5% 12.5% 12.3% 201,066 12.3%

Manufacturing 2.5% 2.5% 2.6% 43,092 2.6%

Transportation 6.3% 6.4% 6.5% 111,449 6.8%

Wholesale 3.2% 3.5% 4.2% 85,045 5.2%

Retail 10.5% 8.9% 6.7% 52,277 3.2%

Finance 7.4% 8.1% 9.2% 177,249 10.8%

Service 48.1% 48.9% 49.8% 846,048 51.3%

Other 4.8% 4.2% 3.3% 30,843 1.9%

Total 1,647,825 100%

Source: HispanTelligence projections 2000-2010, based on data from the U.S. Economic Census, adjusted to reflect undercount; since data prior to 1997 did not include C corpora-tions, HispanTelligence has excluded those companies to allow for comparable comparison.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

201020082006200420022000199719921987

490

863

1,121

1,528

1,767

2,042

2,362

2,736

3,175

Thou

sand

s

COMPANY GROWTHNumber of Hispanic-Owned Firms, 1987–2010

Source: U.S. Economic Census 1987-1997 and HispanTelligence projections 2004–2010.

About HispanTelligence

The U.S. Hispanic Economy in Transition was written and produced by HispanTelligence®, the research division of

Hispanic Business Inc.® We have taken special care to include the latest information available from the Census

Bureau and other government and private research sources, in addition to HispanTelligence proprietary research.

Since 1979, the Hispanic Business Inc. research division has helped

corporations, media organizations, and marketing agencies track

and analyze data on the U.S. Hispanic and Latin American markets.

We perform custom survey design and implementation to identify

strategic opportunities for firms selling to the Hispanic market.

Working with both public- and private-sector organizations,

HispanTelligence can also provide custom reports and intelligence

on U.S. Hispanic consumers and companies.

For special projects, our Board of Economists – a panel of nation-

ally known experts on various aspects of the Hispanic economy – is

available for consultation. Further information can be found at

www.hispanicbusiness.com.

To contact HispanTelligence, e-mail [email protected] or call

(805) 964-4554, extension 605.

The U.S. Hispanic Economy in Transition was researched by Chief Economist Juan Solana, Business Economist J.

Tabin Cosio, Business Analyst Veronica Spadoni, Research Supervisor Michael Caplinger, and Senior Research

Assistant Cynthia Márquez; the manuscript was edited by Nancy Lackey Shaffer, Judi Erickson, and Joel Russell;

Kenneth Whitney provided creative services/production. The entire manuscript was critically reviewed at all stages

of development by the editor of Hispanic Business® magazine, Jesús Chavarría.

HispanTelligence believes its data and text to be reliable, but accuracy is not warranted or guaranteed. The U.S.

Hispanic Economy in Transition may include facts, views, opinions, and recommendations of individuals and organ-

izations deemed of interest. HispanTelligence does not guarantee the accuracy, completeness, or timeliness of, or

otherwise endorse, these views, opinions, or recommendations. The U.S. Hispanic Economy in Transition is provided

on an “as-is” basis. HispanTelligence expressly disclaims all warranties of any kind, expressed or implied, including

without limitation any warranty of merchantability, fitness for a particular purpose, or non-infringement.

Copyright ©2005 Hispanic Business Inc., Santa Barbara, California, and HispanTelligence, Santa Barbara,

California. All rights reserved.


From left to right: J. Tabin Cosio, Veronica Spadoni, MikeCaplinger, Juan Solana, and Cynthia Márquez

hispanic economy 2005 intransition

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