Hispanic Public Relations Blog

Hispanic business owners are an important part of the Hispanic market. Census research has shown Hispanic-owned businesses are growing at three times the national average.  The latest figures show that one of every ten businesses in America is run by a Latino.  By 2010, it’s predicted that there will be 3.2 million Hispanic-owned firms in the U.S., altogether generating $465 billion annually.

The majority of these are small businesses with annual revenues under $250,000.  They range from local restaurants, to hair salons, construction companies, and mechanics.  Such businesses are key to the growth of the Hispanic middle class.

Then there are some 1,500 larger firms estimated to have 100 employees or more, manufacturers and large-scale construction contractors, chains of Hispanic-related grocery stores, and firms with real estate holdings in the U.S. and possibly Latin America.  Altogether, these businesses generate about $42 billion annually in gross revenue.  Many are started from scratch, with borrowed money or foreign capital.

Roughly 45 percent of all U.S. Hispanic firms are owned by people of Mexican origin, whether Mexican immigrants or Mexican-Americans.  Though many Hispanic-owned firms are concentrated in areas you’d expect such as California, Texas and Florida, Hispanic businesses have been growing faster in other states, especially New York, Rhode Island, Georgia, Nevada and South Carolina.

Companies specializing in business-to-business outreach, whether in finance, technology, or other industries, should have a bilingual in-culture strategy for Hispanic businesses.  With bilingual media, your company signals Hispanic business owners that they are welcome, and also make concepts clearer where English is not their first language.  Among Latina entrepreneurs, a rapidly growing demographic, it’s been reported that 34% consider Spanish their first language, and two thirds reported doing business in both English and Spanish.

Hewlett-Packard took note of this in its bilingual b-to-b outreach.  Along with negotiating sales deals bilingually, HP launched a Hispanic small business site in Spanish, to highlight the company’s offerings to small and medium-size businesses.

Along with speaking their language, appreciating Hispanic entrepreneurs is another important part of this outreach.  For many middle-class and affluent Hispanic entrepreneurs, their business is more than just a family effort: it is the key to their children’s future, their legacy to the next generation.  Such business owners value working with companies that can relate to their values and culture.

When private equity firm Palladium Equity Partners sought to acquire the Hispanic multimedia firm Todobebe.com, Palladium managing director Alex Ventosa, born in Spain, spent a year gaining the owner’s trust, convincing her that they would take good care of her family business.   Palladium’s founder, Marcos Rodriguez, said, “Alex’s accent … reminded her of her grandfather,” Rodriguez says. “We were able to acquire that business, whereas other larger strategic buyers could not.”

Hispanics are not only filling jobs in this country: they are creating them.  With a bilingual in-culture approach, your company can stand out in this growing sector of the economy.

Tags: Business, Census, census bureau, entrepreneur, Hewlett-Packard, Hispanic, HispanicPR, immigrant, Latino, Palladium Equity Partners, private equity

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