The Best Cities for Hispanic Businesses

With National Hispanic Heritage Month approaching and nearly one in four new businesses being Hispanic-owned, the personal-finance website WalletHub today released its report on the Best Cities for Hispanic Entrepreneurs in 2024, as well as expert commentary.

To help Hispanic entrepreneurs find the most fertile ground for their enterprises, WalletHub compared more than 180 U.S. cities across 23 key metrics. The data set includes metrics such as the share of Hispanic-owned businesses and the entrepreneurship rate and income growth of Hispanic residents.

Best vs. Worst

• Laredo, Texas, has the highest share of Hispanic residents, which is 60.5 times higher than in Charleston, West Virginia, the city with the lowest.
   
• Pearl City, Hawaii, has the lowest Hispanic unemployment rates, which is 12.4 times lower than in Cleveland, Ohio, the city with the highest.
   
• South Burlington, Vermont, has the highest share of Hispanics with at least a bachelor’s degree, which is 9.5 times higher than in Gulfport, Mississippi, the city with the lowest.
   
• Miami, Hialeah, Fort Lauderdale and Pembroke Pines, Florida, have the highest entrepreneurship rate among the Hispanic population, which is 20.1 times higher than in Fayetteville, North Carolina, the city with the lowest.

View the full report and your city’s rank

“In the top cities for Hispanic entrepreneurs, as many as 30% of businesses are owned by Hispanic people. While these cities also tend to have large Hispanic populations overall, the high entrepreneurship rates indicate that they offer business-friendly conditions. In the top cities, Hispanic entrepreneurs can enjoy low corporate tax rates and good opportunities for growth. Plus, a large Hispanic population can be especially helpful for entrepreneurs who want to cater to that demographic.”
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“Pembroke Pines, FL, is the best city for Hispanic entrepreneurs in 2024, boasting the fourth-highest share of businesses owned by Hispanic people, at around 30.5%. The city also has the highest Hispanic entrepreneurship rate in the country, on top of one of the best entrepreneurship rates for the general population. In addition, Pembroke Pines has the 10th-lowest corporate tax rate among the more than 180 cities in WalletHub’s study.”

– Chip Lupo, WalletHub Analyst

Expert Commentary

Should government authorities create programs or other incentives to specifically encourage Hispanic entrepreneurs? If so, what types of programs or incentives?  

“Providing access to financial education, credit cards, grants, loans, and other capital would significantly improve the ability of Hispanic entrepreneurs to thrive. The greatest need is not just access to these opportunities but ensuring they are regulated in such a way that does not punish the Hispanic entrepreneur for utilizing them. For example, loans or credit cards are commonly used by entrepreneurs, but the variable nature of interest is often punitive to minority entrepreneurs, especially Hispanics.”
Sean Walker, Ph.D., MBA – Professor, University of Tennessee at Martin

“Hispanic entrepreneurs bring a set of specialized skills to the marketplace. They bring a sense of creative cultural relativism that is forged from their national and transnational cultural experiences and bolster and invigorate the marketplace – wherever they land! The government would be wise to incentivize Hispanic engagement in the marketplace in the future.”
Rachel V. González-Martin, Ph.D. – Associate Professor, The University of Texas at Austin

How do you explain the rapid growth of Latino entrepreneurs? What impact will they have on the future of the economy?

“The rapid growth of Latino entrepreneurs is a key driver of business creation across the country, especially in the wake of economic challenges such as the 2007-2008 recession. During that period, the resilience and entrepreneurial spirit of Latinos were instrumental in maintaining and even growing the number of businesses when other groups were scaling back. Without the influx of Latino entrepreneurs, the recovery of the U.S. economy would have been significantly slower and less robust. This growth is partly fueled by new waves of immigrants who have a greater propensity to start businesses. Immigrants often see entrepreneurship as a pathway to economic mobility and community empowerment, bringing diverse perspectives that lead to innovative solutions and problem-solving… However, the potential of Latino entrepreneurs is far from fully realized. If Latino-owned businesses were supported to generate revenue on par with their white counterparts, there would be an additional $1.4 trillion added to the U.S. economy. This staggering figure highlights the untapped potential within the Latino business community and underscores the importance of equitable support and resources to help these businesses thrive… The future of the U.S. economy will be increasingly shaped by Latino entrepreneurs. As they continue to grow in numbers and economic influence, they will play a critical role in driving innovation, addressing emerging challenges, and creating new opportunities across industries. Many of tomorrow’s challenges and innovations will be generated by Latino entrepreneurs, making their success vital to the continued prosperity and competitiveness of the U.S. economy.”
Marlene Orozco – Lead Research Analyst with the Stanford Latino Entrepreneurship Initiative; Ph.D. candidate in Sociology, Stanford University

“Latinos are still the youngest and fastest-growing population in the greater United States. Our communities have a futurity in the market – but we lack coordinated and consistent effort – we are not one market, but many. We need to embrace our internal diversity to maximize our success in the ‘cultural’ marketplace.”
Rachel V. González-Martin, Ph.D. – Associate Professor, The University of Texas at Austin

What tips do you have for a Hispanic entrepreneur interested in starting their own business?  

“I think there are two simple tips that apply across industries: 1) look to role models and 2) be persistent. Prospective Hispanic entrepreneurs should network with other successful entrepreneurs, especially successful Hispanic entrepreneurs, because they have a wealth of shared experiences. This information, consistent with a mentoring program at an organization, can help provide the answers to important questions in real-time and allow them to more quickly address challenges they face. Additionally, Hispanic entrepreneurs need to be persistent in their pursuit of finding the capital they need (whether it is for opening their business or growing it).”
Sean Walker, Ph.D., MBA – Professor, University of Tennessee at Martin

“Do not make decisions in fear, and don’t do it alone. Find a small team of mentors that will work for your best interests. There are many organizations, including Hispanic chambers of commerce, which will provide resources.”
John Gustincic, JD – Lecturer in Entrepreneurship, Central Michigan University