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.
Main Findings
Best Cities for Hispanic Entrepreneurs
Overall Rank |
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:
- 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?
Ask the Experts
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)
Note: (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.
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.
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