Annual Latino-Owned Business Study 2021

October 06, 2021

Latino-Owned Businesses Performance Outpaced Non-Latino-Owned Firms in 2020-21, according to Biz2Credit’s Annual Study

Latino-owned businesses generated nearly $500 billion in annual revenue and employed 3.4 million people during pre-pandemic times.

Latino-Owned Businesses Performance

Average Annual Revenue

Average Annual Revenue

Average annual revenue for Latino-owned businesses ($258,251) was $45,435 higher than for Non-Latino-owned companies ($212,816) in 2020-21.

Average revenue and earnings of Latino-owned firms dropped in 2020-21 compared to 2019-20. However, the Latino firms outpaced those of non-Latino-owned firms in 2020-21.

Average Credit Score

The average credit score for Latino-owned businesses is higher (614) than for non-Latino businesses (610) in 2020-21.

California was the state where the most loan applications originated (20.7%), followed by Texas (18.0%), Florida (14.9%), New York (8.4%), Illinois (4.0%) in 2020-21.

Average Credit Score

Average Operating Expenses

Average Operating Expenses

Average operating expenses represents 37% ($95,526) of the revenue for Latino business owners in comparison to 38% ($80,063) for non-Latino business owners in 2020-21.

The funding rate for Latino-owned companies was 34.5%, slightly lower than the funding rate for non-Latino-owned firms 36.6% in 2020-21.

Average Annual Earnings

Average annual earnings for Latino-owned companies ($162,725) outpaced those of non-Latino-owned firms ($132,753) in 2020-21.

There are an estimated 4.65 million Hispanic-owned businesses in the U.S., making them the fastest-growing segment of U.S. small businesses.

Average Annual Earnings

Average Age of Business

Average Age of Business

The average age of business (in months) for Latino-owned businesses is higher (55) than for non-Latino businesses (52) in 2020-21.

The number of Hispanic business owners has grown 34% in the last 10 years

Top 5 states for Hispanic

Top Industries for
Latino-owned companies

16.2%

Construction
Construction

11.8%

Transportation
Transportation
and Warehousing

9.8%

Retail Trade
Retail Trade

Word from our CEO
Rohit Arora

Rohit Arora, Biz2Credit CEO

“Our primary data shows relative success of Latino business owners compared to others. One reason is that business owners of all ethnicities struggled the pandemic, and many loan applications came from non-Latino business owners in urban areas that were hit hard by the pandemic and government-mandated restrictions on their operations.”

Key findings:
  • Average annual revenue for Latino-owned businesses ($258,251) was $45,435 higher than for Non-Latino-owned companies ($212,816) in 2020-21.
  • The average age of business (in months) for Latino-owned businesses is higher (55) than for non-Latino businesses (52) in 2020-21.
  • Average annual earnings for Latino-owned companies ($162,725) outpaced those of non-Latino-owned firms ($132,753) in 2020-21.
  • For year-over-year comparisons, 2020-21 vs 2019-20, Latinoowned businesses still outpaced non-Latino-owned businesses.
  • Average operating expenses represents 37% ($95,526) of the revenue for Latino business owners in comparison to 38% ($80,063) for non-Latino business owners in 2020-21.
  • Despite superior performance measures, the funding rate for Latino-owned companies was slightly lower than the funding rate for non-Latino-owned firms in 2020-21.
  • The average credit score for Latino-owned businesses is higher (614) than for non-Latino businesses (610) in 2020-21.

About the Biz2Credit Latino Small Business Credit Study Biz2Credit, a leading online funding provider to small businesses, analyzed the financial performance of over 43,000 companies, including more than 4,000 Latino-owned firms, that submitted funding requests through the company’s online funding platform. All companies included in the survey have less than 250 employees and less than $10 million in annual revenues. The report covered small businesses across the country, from start-ups to established companies.