Posted by: Adam McCann

Expect the Hispanic and Latino community’s contributions to the U.S. economy to be nothing short of monumental in the coming decades. Not only is this demographic expected to make up a more than 25% of the U.S. population by 2050 — translating into large buying power — this group is also creating businesses at 15 times the national rate, according to one report.

The timing, therefore, could not be more appropriate for Hispanic entrepreneurs to make their business ideas a reality. But what places have the best conditions for a Hispanic-owned enterprise? To answer that question, WalletHub compared more than 180 U.S. cities across 24 key indicators of business friendliness toward Hispanic entrepreneurs. Our data set of 24 key metrics ranges from Hispanic entrepreneurship rate to median annual income of Hispanics to share of Hispanics with at least a bachelor’s degree. Read on for our findings, expert business insight from a panel of researchers and a full description of our methodology.

1. Main Findings
2. Ask the Experts
3. Methodology

Main Findings Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/6491/geochart-hispanic-2019.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="http://bit.ly/2PGZaaJ>

 

Best Cities for Hispanic Entrepreneurs

Overall Rank (1=Best)	City	Total Score	‘Hispanic Business-Friendliness’ Rank	‘Hispanic Purchasing Power’ Rank
1	Laredo, TX	64.69	2	10
2	Pembroke Pines, FL	63.60	6	5
3	Corpus Christi, TX	61.02	5	25
4	Miami, FL	60.34	1	101
5	San Antonio, TX	59.84	7	19
6	Juneau, AK	58.69	20	4
7	Tampa, FL	57.80	3	108
8	Charleston, WV	56.88	23	8
9	El Paso, TX	56.77	8	48
10	Hialeah, FL	56.41	4	117
11	Grand Prairie, TX	56.27	27	7
12	Amarillo, TX	55.53	13	41
13	Brownsville, TX	55.47	9	69
14	Fort Worth, TX	55.35	29	14
15	West Valley City, UT	54.91	19	27
16	Oklahoma City, OK	54.86	15	40
17	Austin, TX	54.45	33	16
18	Orlando, FL	54.32	10	70
19	Sioux Falls, SD	54.22	17	45
20	Irving, TX	54.11	34	17
21	Plano, TX	54.06	46	11
22	Gilbert, AZ	53.99	109	1
23	Port St. Lucie, FL	53.96	25	30
24	Atlanta, GA	53.59	28	34
25	Irvine, CA	53.43	61	6
26	Huntington, WV	53.41	70	13
27	Houston, TX	53.13	16	68
28	Dallas, TX	53.12	21	55
29	Fort Lauderdale, FL	53.11	12	86
30	South Burlington, VT	52.46	45	26
31	Bismarck, ND	52.16	77	12
32	Jacksonville, FL	52.13	39	38
33	Tulsa, OK	52.09	14	107
34	Chesapeake, VA	52.05	124	3
35	Boise, ID	51.79	49	29
36	Casper, WY	51.44	59	22
37	Columbia, MD	51.31	48	42
38	St. Petersburg, FL	51.17	58	23
39	Albuquerque, NM	51.17	24	84
40	Arlington, TX	51.08	32	65
41	Denver, CO	50.93	43	58
42	Scottsdale, AZ	50.93	52	44
43	Mesa, AZ	50.61	41	61
44	Henderson, NV	50.49	67	24
45	Las Cruces, NM	50.44	11	136
46	Santa Ana, CA	50.41	26	102
47	Cheyenne, WY	50.39	30	95
48	Nashville, TN	50.34	55	43
49	Anchorage, AK	50.25	47	59
50	Fremont, CA	50.00	122	9
51	Lubbock, TX	49.94	60	47
52	Billings, MT	49.83	38	78
53	Cape Coral, FL	49.69	40	80
54	Santa Clarita, CA	49.63	111	15
55	Salt Lake City, UT	49.41	22	128
56	Raleigh, NC	49.40	82	28
57	Garland, TX	49.37	62	52
58	Overland Park, KS	49.31	79	39
59	St. Louis, MO	49.25	63	50
60	Springfield, MO	49.19	36	106
61	Peoria, AZ	49.07	64	54
62	Chandler, AZ	48.57	93	37
63	Tempe, AZ	48.55	98	33
64	Durham, NC	48.51	101	32
65	Ontario, CA	48.08	66	65
66	Chula Vista, CA	47.98	42	115
67	Aurora, CO	47.95	81	56
68	Fontana, CA	47.92	110	36
69	Nampa, ID	47.85	75	62
70	New Orleans, LA	47.83	51	109
71	Chattanooga, TN	47.73	89	53
72	Bakersfield, CA	47.71	57	88
73	Oxnard, CA	47.67	65	79
74	Riverside, CA	47.49	76	67
75	Warwick, RI	47.31	178	2
76	Anaheim, CA	47.25	50	116
77	Phoenix, AZ	47.23	86	63
78	Las Vegas, NV	47.01	73	82
79	Rancho Cucamonga, CA	46.97	139	21
80	Rapid City, SD	46.84	35	138
81	Charleston, SC	46.73	134	35
82	Moreno Valley, CA	46.67	99	64
83	Baton Rouge, LA	46.47	54	122
84	Kansas City, MO	46.44	95	74
85	Aurora, IL	46.34	84	81
86	Huntington Beach, CA	46.31	103	71
87	San Francisco, CA	46.13	87	85
88	Greensboro, NC	46.03	104	72
89	Cedar Rapids, IA	45.93	152	31
90	Washington, DC	45.83	155	20
91	Charlotte, NC	45.76	92	94
92	Tucson, AZ	45.64	31	156
93	Colorado Springs, CO	45.58	97	92
94	Mobile, AL	45.50	91	104
95	Portland, OR	45.50	90	105
96	Virginia Beach, VA	45.48	125	60
97	Pittsburgh, PA	45.42	164	18
98	Glendale, AZ	45.40	102	93
99	Cincinnati, OH	45.26	140	46
100	Madison, WI	45.24	108	90
101	Grand Rapids, MI	45.24	44	147
102	Reno, NV	45.23	120	73
103	San Jose, CA	45.13	114	83
104	Portland, ME	45.04	71	124
105	Shreveport, LA	45.01	56	139
106	Lincoln, NE	44.81	107	103
107	Seattle, WA	44.54	146	51
108	Omaha, NE	44.41	115	100
109	Knoxville, TN	44.10	123	99
110	Oceanside, CA	44.04	85	130
111	Fargo, ND	43.92	53	149
112	Lewiston, ME	43.89	105	114
113	Columbus, OH	43.84	137	75
114	Santa Rosa, CA	43.79	133	89
115	North Las Vegas, NV	43.75	159	49
116	Baltimore, MD	43.65	131	96
117	Jackson, MS	43.55	18	176
118	Fort Wayne, IN	42.97	128	112
119	Wichita, KS	42.96	119	119
120	San Diego, CA	42.94	78	144
121	Indianapolis, IN	42.61	130	113
122	Chicago, IL	42.49	83	146
123	Los Angeles, CA	42.24	72	157
124	Tallahassee, FL	42.15	106	140
125	Sacramento, CA	42.13	126	126
126	Winston-Salem, NC	42.05	94	148
127	Memphis, TN	41.98	132	120
128	Huntsville, AL	41.94	80	155
129	Nashua, NH	41.87	170	57
130	Long Beach, CA	41.85	96	150
131	Minneapolis, MN	41.82	157	87
132	Tacoma, WA	41.74	158	90
133	St. Paul, MN	41.66	136	121
134	Birmingham, AL	41.59	69	164
135	Little Rock, AR	41.41	138	123
136	San Bernardino, CA	41.35	118	142
137	Yonkers, NY	41.14	129	137
138	Louisville, KY	41.11	166	76
139	Stockton, CA	41.04	117	145
140	Fayetteville, NC	41.02	88	162
141	Fresno, CA	40.70	113	154
142	Lexington-Fayette, KY	40.61	173	77
143	Newport News, VA	40.55	151	127
144	Columbus, GA	40.53	121	151
145	Fort Smith, AR	40.44	150	131
146	Pearl City, HI	40.40	149	132
147	Norfolk, VA	40.20	147	134
148	Garden Grove, CA	40.11	161	118
149	Columbia, SC	40.09	156	125
150	Missoula, MT	39.95	37	179
151	Honolulu, HI	39.83	142	141
152	Richmond, VA	39.80	154	133
153	Salem, OR	39.73	167	110
154	Oakland, CA	39.48	168	111
155	Montgomery, AL	39.24	127	159
156	Modesto, CA	39.19	160	135
156	Gulfport, MS	39.19	74	172
158	Des Moines, IA	38.79	175	98
159	Toledo, OH	38.57	100	170
160	New York, NY	38.43	68	178
161	Boston, MA	38.16	112	169
162	Burlington, VT	38.13	116	166
163	Manchester, NH	37.82	144	161
164	Augusta, GA	37.03	141	165
165	Milwaukee, WI	36.92	163	153
166	Spokane, WA	36.78	172	143
167	Vancouver, WA	36.69	176	129
168	Detroit, MI	36.46	135	171
169	Jersey City, NJ	36.19	169	152
170	Akron, OH	36.17	162	163
171	Dover, DE	36.11	182	97
172	Glendale, CA	36.11	165	158
173	Buffalo, NY	35.54	171	160
174	Philadelphia, PA	35.14	148	173
175	Worcester, MA	34.45	153	174
176	Newark, NJ	34.12	145	177
177	Rochester, NY	33.36	143	181
178	Cleveland, OH	31.19	177	168
179	New Haven, CT	30.22	180	167
180	Bridgeport, CT	29.56	179	175
181	Wilmington, DE	28.98	174	182
182	Providence, RI	27.73	181	180

Ask the Experts

To expand the discussion about the present and future of Hispanic entrepreneurship in the U.S., we asked a panel of minority-business experts to share their thoughts on the following key questions:

1. What are the biggest challenges faced by Hispanic entrepreneurs?
2. Should government authorities create programs or other incentives to encourage Hispanic entrepreneurs? If so, what types of programs or incentives?
3. What tips do you have specifically for Hispanic entrepreneurs interested in starting their own business?
4. In evaluating the best cities for Hispanic entrepreneurs, what are the top five indicators?

< >

• David Cadden Ph.D. – Professor Emeritus, Part-Time Faculty, Quinnipiac University
• Greg Stoller Senior Lecturer, Strategy and Innvoation, Boston University Questrom School of Business
• Joy Ruihua Jiang Ph.D. – Associate Professor of Management, Oakland University
• Qingfang Wang Ph.D. – Professor of Geography and Public Policy, School of Public Policy, University of California, Riverside

Methodology

In order to determine the best cities for Hispanic entrepreneurs, WalletHub compared 182 cities — including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state — across two key dimensions, “Hispanic Business-Friendliness” and “Hispanic Purchasing Power.” Our sample considers only the city proper in each case and excludes cities in the surrounding metro area.

We evaluated the two dimensions using 24 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for Hispanic entrepreneurs. Data for metrics marked with an asterisk (*) were available at only the state level.

We then determined each city’s based on its weighted average across all metrics to calculate its total score and used the resulting scores to rank-order our sample.

Hispanic Business-Friendliness – Total Points: 60

• Share of Hispanic-Owned Businesses: Double Weight (~8.00 Points)
• Hispanic Entrepreneurship Rate: Double Weight (~8.00 Points)Note: This metric measures the number of Hispanic-owned firms adjusted for the Hispanic population.
• Average Growth of Hispanic Business Revenues (2012 vs. 2007): Full Weight (~4.00 Points)
• Presence of Hispanic Chamber of Commerce: Full Weight (~4.00 Points)
• Small Business-Friendliness Score*: Full Weight (~4.00 Points)Note: This metric is based on Thumbtack’s “Small Business Friendliness Survey” score.
• Entrepreneurial Activity Index*: Full Weight (~4.00 Points)
• Industry Variety: Full Weight (~4.00 Points)
• 5-Year Business Survival Rate*: Full Weight (~4.00 Points)
• Significant Startups per Capita: Full Weight (~4.00 Points)Note: This metric measures the number of 4- to 15-years old startups with at least five employees adjusted to population.
• Small-Business Loans per Total Number of Small Businesses: Full Weight (~4.00 Points)
• Average Monthly Rent for Office Space: Full Weight (~4.00 Points)
• Corporate Tax Rank*: Full Weight (~4.00 Points)
• Average Length of Workday (in Hours): Full Weight (~4.00 Points)

Hispanic Purchasing Power – Total Points: 40

• Affordability: Double Weight (~6.40 Points)Note: This metric was calculated as follows: Median Annual Income of Hispanics / Cost of Living.
• Share of Hispanic Households with Annual Earnings Above $75,000: Full Weight (~3.20 Points)
• Income Growth for Hispanics (2017 vs. 2012): Full Weight (~3.20 Points)
• Housing Affordability for Hispanics: Full Weight (~3.20 Points)Note: This metric was calculated as follows: Median Annual Income of Hispanics / Median House Price.
• Hispanic Unemployment Rate: Double Weight (~6.40 Points)
• Hispanic Job Security: Full Weight (~3.20 Points)Notes: (Number of Hispanic Employees in 2017 - Number of Hispanic Employees in 2016) / Number of Hispanic Employees in 2016.
• Share of Hispanic Residents: Full Weight (~3.20 Points)
• Hispanic Population Growth (2017 vs. 2012): Full Weight (~3.20 Points)
• Share of Hispanics with at Least a Bachelor’s Degree: Full Weight (~3.20 Points)Note: “Hispanics” include Hispanics aged 25 years and over.
• Hispanic Housing Tenure: Half Weight (~1.60 Points)Note: This metric measures the Hispanic renter-to-owner ratio.
• City Growth: Full Weight (~3.20 Points)Note: This metric is based on WalletHub’s Fastest Growing Cities ranking.

Videos for News Use:

• YouTube (for web embedding National)
• Raw files (for editing into clips)

 Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Council for Community and Economic Research, Bureau of Labor Statistics, Kauffman Foundation, Federal Deposit Insurance Corporation, Tax Foundation, LoopNet, EC Hispanic Media, Thumbtack and WalletHub research.

Image: antoniodiaz / Shutterstock.com

from Wallet HubWallet Hub


via Finance Xpress