2017’s Best Cities for Hispanic Entrepreneurs
3:29 AMPosted by: Richie Bernardo
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 third of the U.S. population by 2050 — translating into immense 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 bring their business ideas to fruition. But where is the most fertile ground for a Hispanic-owned enterprise? To answer that question, WalletHub’s analysts compared the 150 largest U.S. cities across 21 key indicators of business friendliness toward Hispanic entrepreneurs. Our data set of 21 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.
Main Findings Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/6491/geochart-hispanic.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2oLm6Yh;
Overall Rank |
City |
Total Score |
‘Hispanic Business-Friendliness’ Rank |
‘Hispanic Purchasing Power’ Rank |
---|---|---|---|---|
1 | Laredo, TX | 66.39 | 1 | 2 |
2 | El Paso, TX | 56.34 | 5 | 6 |
3 | Pembroke Pines, FL | 56.19 | 4 | 7 |
4 | Corpus Christi, TX | 55.85 | 11 | 4 |
5 | Brownsville, TX | 53.73 | 9 | 13 |
6 | Hialeah, FL | 53.39 | 2 | 81 |
7 | Irvine, CA | 53.22 | 28 | 3 |
8 | Amarillo, TX | 52.56 | 16 | 11 |
9 | Springfield, MO | 52.38 | 10 | 17 |
10 | Oklahoma City, OK | 52.15 | 14 | 14 |
11 | Gilbert, AZ | 51.93 | 91 | 1 |
12 | Chesapeake, VA | 50.86 | 31 | 9 |
13 | San Antonio, TX | 50.81 | 27 | 12 |
14 | Grand Prairie, TX | 50.58 | 54 | 5 |
15 | Plano, TX | 50.24 | 19 | 21 |
16 | Lubbock, TX | 50.10 | 22 | 16 |
17 | Sioux Falls, SD | 50.06 | 12 | 41 |
18 | Tulsa, OK | 50.05 | 13 | 39 |
19 | Miami, FL | 49.78 | 3 | 93 |
20 | Overland Park, KS | 49.71 | 21 | 27 |
21 | Fort Worth, TX | 49.14 | 49 | 10 |
22 | Irving, TX | 49.11 | 50 | 8 |
23 | Boise, ID | 49.03 | 20 | 34 |
24 | Port St. Lucie, FL | 48.90 | 32 | 22 |
25 | Fort Lauderdale, FL | 48.56 | 6 | 95 |
26 | Orlando, FL | 48.54 | 30 | 31 |
27 | Garland, TX | 48.47 | 35 | 20 |
28 | Austin, TX | 48.02 | 51 | 15 |
29 | Tampa, FL | 48.01 | 7 | 103 |
30 | Anchorage, AK | 47.84 | 18 | 59 |
31 | New Orleans, LA | 47.80 | 46 | 24 |
32 | St. Petersburg, FL | 47.66 | 44 | 29 |
33 | Henderson, NV | 47.53 | 24 | 52 |
34 | Aurora, CO | 47.43 | 37 | 33 |
35 | Raleigh, NC | 47.21 | 33 | 46 |
36 | Houston, TX | 47.11 | 34 | 45 |
37 | Charlotte, NC | 46.97 | 43 | 37 |
38 | Denver, CO | 46.93 | 39 | 40 |
39 | Jacksonville, FL | 46.82 | 29 | 61 |
40 | Salt Lake City, UT | 46.80 | 8 | 122 |
41 | Cape Coral, FL | 46.80 | 23 | 69 |
42 | Baton Rouge, LA | 46.67 | 42 | 44 |
43 | Dallas, TX | 46.21 | 38 | 55 |
44 | Scottsdale, AZ | 46.08 | 36 | 60 |
45 | Virginia Beach, VA | 46.07 | 40 | 57 |
46 | Colorado Springs, CO | 46.05 | 41 | 58 |
47 | Atlanta, GA | 45.71 | 17 | 101 |
48 | Greensboro, NC | 45.19 | 59 | 35 |
49 | Arlington, TX | 44.85 | 53 | 56 |
50 | Durham, NC | 44.82 | 57 | 47 |
51 | Mobile, AL | 44.75 | 78 | 28 |
52 | Fremont, CA | 44.60 | 79 | 30 |
53 | Peoria, AZ | 44.48 | 68 | 36 |
54 | Chandler, AZ | 44.28 | 90 | 18 |
55 | Chula Vista, CA | 43.78 | 81 | 38 |
56 | Washington, DC | 43.61 | 103 | 23 |
57 | St. Louis, MO | 43.56 | 26 | 117 |
58 | Huntsville, AL | 43.50 | 75 | 48 |
59 | Nashville, TN | 43.32 | 80 | 51 |
60 | Reno, NV | 43.08 | 60 | 72 |
61 | Shreveport, LA | 42.98 | 52 | 88 |
62 | Wichita, KS | 42.97 | 58 | 78 |
63 | Lincoln, NE | 42.78 | 69 | 67 |
64 | Kansas City, MO | 42.71 | 45 | 108 |
65 | Norfolk, VA | 42.67 | 63 | 76 |
66 | Knoxville, TN | 42.45 | 66 | 73 |
67 | Oxnard, CA | 42.44 | 119 | 18 |
68 | Albuquerque, NM | 42.44 | 62 | 80 |
69 | Fayetteville, NC | 42.09 | 48 | 107 |
70 | Bakersfield, CA | 41.96 | 123 | 26 |
71 | Chattanooga, TN | 41.57 | 47 | 121 |
72 | Fort Wayne, IN | 41.49 | 74 | 85 |
73 | Moreno Valley, CA | 41.40 | 122 | 32 |
74 | Portland, OR | 41.31 | 82 | 75 |
75 | Fontana, CA | 41.28 | 126 | 25 |
76 | Tempe, AZ | 41.21 | 93 | 68 |
77 | Seattle, WA | 41.19 | 99 | 63 |
78 | Richmond, VA | 41.15 | 65 | 96 |
79 | Huntington Beach, CA | 41.13 | 56 | 104 |
80 | Honolulu, HI | 40.93 | 25 | 134 |
81 | Winston-Salem, NC | 40.89 | 76 | 91 |
82 | Aurora, IL | 40.76 | 119 | 50 |
83 | North Las Vegas, NV | 40.73 | 116 | 53 |
84 | Santa Rosa, CA | 40.64 | 97 | 71 |
85 | Omaha, NE | 40.53 | 72 | 99 |
86 | Columbus, GA | 40.43 | 89 | 84 |
87 | Louisville, KY | 40.43 | 110 | 66 |
88 | Augusta, GA | 40.31 | 101 | 74 |
89 | Tallahassee, FL | 40.29 | 67 | 110 |
90 | Las Vegas, NV | 40.22 | 92 | 86 |
91 | Indianapolis, IN | 40.21 | 95 | 83 |
92 | Newport News, VA | 40.02 | 70 | 111 |
93 | Grand Rapids, MI | 39.85 | 83 | 98 |
94 | Santa Ana, CA | 39.81 | 87 | 92 |
95 | Columbus, OH | 39.57 | 135 | 49 |
96 | Rancho Cucamonga, CA | 39.53 | 115 | 70 |
97 | San Francisco, CA | 39.53 | 71 | 118 |
98 | San Bernardino, CA | 39.50 | 124 | 62 |
99 | Baltimore, MD | 39.46 | 101 | 89 |
100 | San Diego, CA | 39.44 | 73 | 119 |
101 | Ontario, CA | 39.33 | 138 | 43 |
102 | Lexington-Fayette, KY | 39.23 | 129 | 65 |
103 | Birmingham, AL | 39.22 | 55 | 131 |
104 | Phoenix, AZ | 39.20 | 88 | 102 |
105 | Riverside, CA | 39.08 | 136 | 54 |
106 | Madison, WI | 38.97 | 64 | 127 |
107 | Stockton, CA | 38.92 | 118 | 79 |
108 | Mesa, AZ | 38.88 | 104 | 96 |
109 | Santa Clarita, CA | 38.85 | 134 | 64 |
110 | Memphis, TN | 38.83 | 84 | 116 |
111 | Montgomery, AL | 38.75 | 113 | 87 |
112 | Little Rock, AR | 38.60 | 61 | 133 |
113 | Jackson, MS | 38.56 | 15 | 149 |
114 | San Jose, CA | 38.48 | 96 | 109 |
115 | Anaheim, CA | 38.38 | 100 | 106 |
116 | Fresno, CA | 38.21 | 111 | 100 |
117 | Oceanside, CA | 37.80 | 85 | 124 |
118 | Sacramento, CA | 37.53 | 108 | 112 |
119 | Glendale, AZ | 37.50 | 106 | 115 |
120 | Pittsburgh, PA | 36.90 | 149 | 42 |
121 | Tucson, AZ | 36.83 | 105 | 126 |
122 | Yonkers, NY | 36.80 | 86 | 129 |
123 | Modesto, CA | 36.51 | 143 | 82 |
124 | Cincinnati, OH | 36.17 | 127 | 114 |
125 | Des Moines, IA | 36.15 | 145 | 77 |
126 | Minneapolis, MN | 36.02 | 141 | 94 |
127 | Spokane, WA | 35.81 | 144 | 90 |
128 | Tacoma, WA | 35.71 | 139 | 105 |
129 | Chicago, IL | 35.59 | 107 | 132 |
130 | Garden Grove, CA | 35.58 | 130 | 120 |
131 | St. Paul, MN | 35.25 | 128 | 125 |
132 | Akron, OH | 35.25 | 94 | 140 |
133 | Detroit, MI | 35.03 | 114 | 136 |
134 | Toledo, OH | 34.65 | 121 | 137 |
135 | Rochester, NY | 34.17 | 98 | 144 |
136 | Oakland, CA | 33.95 | 142 | 123 |
137 | Los Angeles, CA | 33.86 | 117 | 142 |
138 | Boston, MA | 33.73 | 77 | 148 |
139 | Worcester, MA | 33.68 | 109 | 145 |
140 | Milwaukee, WI | 33.68 | 137 | 130 |
141 | Long Beach, CA | 33.52 | 131 | 138 |
142 | Vancouver, WA | 33.22 | 147 | 113 |
143 | Buffalo, NY | 32.97 | 132 | 139 |
144 | Glendale, CA | 32.91 | 133 | 141 |
145 | Newark, NJ | 32.06 | 125 | 146 |
146 | Jersey City, NJ | 31.77 | 140 | 143 |
147 | Cleveland, OH | 31.62 | 146 | 135 |
148 | Philadelphia, PA | 31.38 | 148 | 128 |
149 | New York, NY | 30.44 | 112 | 150 |
150 | Providence, RI | 26.93 | 150 | 147 |
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:
- What are the biggest challenges faced by Hispanic entrepreneurs?
- Should government authorities create programs or other incentives to encourage Hispanic entrepreneurs? If so, what types of programs or incentives?
- What tips do you have specifically for Hispanic entrepreneurs interested in starting their own business?
- In evaluating the best cities for Hispanic entrepreneurs, what are the top five indicators?
Jacob L. Vigdor Daniel J. Evans Professor of Public Policy and Governance at University of Washington, Evans School of Public Policy and Governance
Guillermo de los Reyes Heredia Associate Professor of Latin American Literature and Cultural Studies, and Director of Undergraduate Studies in the Department of Hispanic Studies at University of Houston
Eric Hershberg Director of the Center for Latin American and Latino Studies, and Professor of Government in the School of Public Policy at American University
Zulema Valdez Associate Professor in the Department of Sociology at University of California, Merced
Robert W. Fairlie Chair and Professor in the Department of Economics at University of California, Santa Cruz
Barbara Bird Professor of Management and Director of the Latino Entrepreneurship in the DC-Metro Area Project at American University, Kogod School of Business
Eileen Díaz McConnell Associate Professor in the School of Transborder Studies at Arizona State University
Sarah Deutsch Professor of History in the Trinity College of Arts and Sciences at Duke University
D. Daniel Sokol Professor of Law at University of Florida Levin College of Law
Betty Francisco Founder and President of FitNation Ventures and Co-founder of the Latina Circle
José R. Llanes Professor of Organization and Leadership in the College of Education at Auburn University
Isaura Flores Assistant Dean and Associate Professor of Business Entrepreneurship at University of North Texas, School of Business
Laura Huang Assistant Professor of Management and Entrepreneurship at the Wharton School of the University of Pennsylvania
Andrea Guendelman Co-Founder and CEO of BeVisible
Denisse Olivas Lecturer of Marketing and Director of the Center for Hispanic Entrepreneurship at The University of Texas at El Paso, College of Business Administration
Angela Franco President & CEO of the Greater Washington Hispanic Chamber of Commerce
Mark T. Schenkel Sr. Vice President of Finance for the United States Association for Small Business & Entrepreneurship, and Associate Professor of Entrepreneurship in the Jack C. Massey College of Business at Belmont University


- Be informed about the new regulations;
- Learn about your own community vis-à-vis other communities in your city;
- Advertising your business is pivotal;
- Make sure that all your papers are in order and up-to-date;
- Seek trustworthy legal advice.



- Disadvantaged business contracting programs;
- Programs to build wealth.










- For the most part, Hispanic business owners start their businesses with fewer assets. They usually don’t have any family history of business ownership, but if they do, they are more likely to be successful. They are also more often denied loans by banks because they may not have the credit history, the level of assets, or the background necessary to be provided these loans. Sometimes, business owners don’t ask for loans due to cultural differences or their lack of awareness.
- Lower levels of business training is also a big factor in success. Hispanic owners usually cite that they need business training to be successful. Having managerial, marketing, leadership, and communication experience is very helpful in managing and growing a business. Hispanics also have to deal with language issues, when they are not completely fluent, or not fluent at all in English, and have to communicate with vendors, employees, and customers.
- Hispanic business owners overall have smaller business networks to draw from, as well. Even though they have large family and friend networks, these are not necessarily helpful when it comes to resources and advice. Having good business networks is important because they can learn from each other, they can get mentored, and they can learn of opportunities available in their industries. In addition to networks, having a proper business infrastructure in a city really helps to develop Hispanic businesses, and it helps to ensure that there is a push for everyone to attain their individual and collective goals. Cuban-Americans usually do very well because their business regions are well developed and supported, as they ensure they have networks and processes in place for success.
- Create a business plan. This ensures that they have a roadmap with goals and strategies that will help them get there. Most Hispanic business owners don’t have a plan in place and this can be detrimental to a business.
- Have a clear focus and mission of who they are and what they can provide for a customer. Those owners with a lack of focus have a harder time making it.
- Join a local Hispanic Chamber of Commerce. Networking is so important! Joining a local chapter is very beneficial to find customers, vendors and opportunities for contracts, especially when the organization is dedicated to serving Hispanics and know how to help them.
- Take some business courses and workshops. Try to develop business skills early in the game. The earlier they do it, the better they can handle situations and challenges.

- Develop a clear business plan.
- Don’t be afraid to look for help. Organizations such as the Chamber are here to help you start, grow and do business.
- Network to build relationships that last with different communities. The main purpose of building relationships shouldn’t be “how am I going to benefit from you?” but about getting to know the person. At the end, we are all people, and people want to do business with people.
- Don’t limit yourself. Expand your network, not just network with people in your circle but expand beyond that.

In order to determine the best cities for Hispanic entrepreneurs, WalletHub’s analysts compared the 150 most populated U.S. cities across two key dimensions, namely “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 21 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 calculated the total score for each city based on its weighted average across all metrics and used the resulting scores to construct our final ranking.
Hispanic Business-Friendliness – Total Points: 60- Share of Hispanic-Owned Businesses: Double Weight (~8.57 Points)
- Hispanic Entrepreneurship Rate: Double Weight (~8.57 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 (~4.29 Points)
- Business-Friendliness Score*: Full Weight (~4.29 Points)
- Entrepreneurial Activity Index: Full* Weight (~4.29 Points)
- Industry Variety: Full Weight (~4.29 Points)
- 5-Year Business Survival Rate: Full* Weight (~4.29 Points)
- Significant Startups per Capita: Full Weight (~4.29 Points)Note: This metric measures the 5- to 15-year survival rate of startups with at least five employees.
- Small-Business Loans per Total Number of Small Businesses: Full Weight (~4.29 Points)
- Average Monthly Rent for Office Space: Full Weight (~4.29 Points)
- Corporate Tax Rank*: Full Weight (~4.29 Points)
- Average Length of Workday (in Hours): Full Weight (~4.29 Points)
- Affordability: Full Weight (~4.71 Points)Note: This metric was calculated as follows: Median Annual Income of Hispanics / Cost of Living.
- Income Growth for Hispanics: Full Weight (~4.71 Points)
- Housing Affordability for Hispanics: Full Weight (~4.71 Points)Note: This metric was calculated as follows: Median Annual Income of Hispanics / Median House Price.
- Hispanic Unemployment Rate: Full Weight (~4.71 Points)
- Percentage of Hispanic Residents: Full Weight (~4.71 Points)
- Hispanic Population Growth: Full Weight (~4.71 Points)
- Percentage of Hispanics with at Least a Bachelor’s Degree: Full Weight (~4.71 Points)
- Hispanic Housing Tenure: Half Weight (~2.35 Points)Note: This metric measures the Hispanic renter-to-owner ratio.
- City Growth: Full Weight (~4.71 Points)Note: This metric is based on WalletHub’s Fastest Growing Cities ranking.
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, Thumbtack and WalletHub research.
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