Best States for Hispanic-Owned Small Businesses

In the United States, nearly 5 million Hispanic-owned businesses exist, and approximately 375,000 are employer businesses. These businesses contribute more than $800 billion to the American economy annually, making them a vital part of the system.

Each year, National Hispanic Heritage Month is observed from September 15th to October 15th. To celebrate, B2B Reviews analyzed small business data to find which states are best for Hispanic-owned small businesses.

We compared all 50 states and the District of Columbia across four key metrics relevant to Hispanic-owned small businesses.

For an in-depth look into how we determined our rankings, take a look at our methodology.

Best States for Hispanic-Owned Small Businesses

Sort the table to see where your state ranks overall or by category.

Note: Columns show how each state ranked for that category.

Top 10 Best States for Hispanic-Owned Small Businesses

Discover why these states ranked in the top ten on our list and explore the factors that make them stand out.

Florida tops our list, ranking high in each category. With the second-highest percentage of Hispanic-owned small businesses and the highest number of Hispanic businesses per 100,000 Hispanic persons, it’s no surprise that the Sunshine State ranks number one.

• Percent of Hispanic-owned small businesses: 29.78%
• Hispanic-owned small businesses per 100,000 Hispanic persons: 16,204
• Percent increase of Hispanic businesses: 7.95%
• Estimated percentage of Hispanic-owned business employees: 13.26%

Rhode Island takes second place, having the highest percentage increase of Hispanic-owned small businesses from 2022 to 2023. Additionally, with nearly 13% of all small businesses being Hispanic-owned and more than 7,100 Hispanic businesses per 100,000 Hispanic people, Rhode Island is a great place for Hispanic-owned companies.

• Percent of Hispanic-owned small businesses: 12.41%
• Hispanic-owned businesses per 100,000 Hispanic persons: 7,178
• Percent increase of Hispanic businesses: 18.84%
• Estimated percentage of Hispanic-owned business employees: 2.30%

Texas comes in third for best states for Hispanic businesses, with a significant percentage of Hispanic-owned businesses and a large percentage of workers employed by Hispanic businesses.

• Percent of Hispanic-owned small businesses: 28.72%
• Hispanic-owned small businesses per 100,000 Hispanic persons: 8,033
• Percent increase of Hispanic businesses: 8.14%
• Estimated percentage of Hispanic-owned business employees: 11.96%

Georgia stands out with the second-highest number of Hispanic-owned businesses per 100,000 Hispanic people, at more than 9,000. It also saw a more than 13% increase in Hispanic-owned small businesses between 2022 and 2023.

• Percent of Hispanic-owned small businesses: 8.55%
• Hispanic-owned small businesses per 100,000 Hispanic persons: 9,135
• Percent increase of Hispanic businesses: 13.14%
• Estimated percentage of Hispanic-owned business employees: 3.27%

With more than 18% of businesses being Hispanic-owned and more than nine percent of employees working for these businesses, Nevada takes fifth place.

• Percent of Hispanic-owned small businesses: 18.09%
• Hispanic-owned small businesses per 100,000 Hispanic persons: 6,354
• Percent increase of Hispanic businesses: 10.01%
• Estimated percentage of Hispanic-owned business employees: 9.36%

Nearly twenty percent of small businesses in Arizona are Hispanic-owned, and the number of these businesses increased by more than ten percent between 2022 and 2023, earning Arizona sixth place in our rankings.

• Percent of Hispanic-owned small businesses: 19.19%
• Hispanic-owned small businesses per 100,000 Hispanic persons: 5,691
• Percent increase of Hispanic businesses: 10.73%
• Estimated percentage of Hispanic-owned business employees: 6.85%

New Jersey takes seventh place, with nearly fifteen percent of its businesses being Hispanic-owned and more than 7,000 Hispanic-owned businesses per 100,000 Hispanic people.

• Percent of Hispanic-owned small businesses: 14.95%
• Hispanic-owned small businesses per 100,000 Hispanic persons: 7,105
• Percent increase of Hispanic businesses: 8.67%
• Estimated percentage of Hispanic-owned business employees: 3.96%

Virginia ranks eighth overall but has the fourth-largest percentage of Hispanic-owned businesses per 100,000 Hispanic people. Additionally, between 2022 and 2023, Virginia saw a more than ten percent increase in Hispanic businesses.

• Percent of Hispanic-owned small businesses: 8.46%
• Hispanic-owned small businesses per 100,000 Hispanic persons: 7,616
• Percent increase of Hispanic businesses: 10.49%
• Estimated percentage of Hispanic-owned business employees: 2.58%

Maryland takes ninth place, with over 7,500 Hispanic-owned small businesses per 100,000 Hispanic people and a nearly ten percent increase in Hispanic businesses from 2022 to 2023. Also, nearly nine percent of all small businesses are Hispanic-owned.

• Percent of Hispanic-owned small businesses: 8.58%
• Hispanic-owned small businesses per 100,000 Hispanic persons: 7,522
• Percent increase of Hispanic businesses: 9.59%
• Estimated percentage of Hispanic-owned business employees: 2.90%

California claims the tenth spot on our list, but it comes in fourth for the percentage of Hispanic businesses, with more than twenty-three percent of all small businesses being Hispanic-owned. Additionally, it has more than 6,000 Hispanic businesses per 100,000 Hispanic people.

• Percent of Hispanic-owned small businesses: 23.60%
• Hispanic-owned small businesses per 100,000 Hispanic persons: 6,211
• Percent increase of Hispanic businesses: 3.85%
• Estimated percentage of Hispanic-owned business employees: 9.18%

States with Highest Percent Increase in Hispanic Small Businesses

One key metric we examined is the percent increase in Hispanic-owned businesses within each state and the District of Columbia.

To find the percent increase, we looked at the number of Hispanic-owned small businesses in 2022 and 2023 and found the difference. We then used the difference to determine the percentage increase of Hispanic-owned businesses.

Take a look at which states had the highest percent increase:

Methodology

To determine which states are best for Hispanic-owned small businesses, the B2B Reviews research team compared all 50 states and the District of Columbia across four key metrics.

The metrics included the percentage of Hispanic-owned small businesses, the percentage of Hispanic-owned small businesses per 100,000 Hispanic people, the percent increase in Hispanic-owned small businesses, and the estimated percent of workers employed by Hispanic companies.

States were ranked within these metrics, earning a score based on the weighted value. We then graded them on a 100-point scale, with 100 points representing the states that are best for Hispanic-owned small businesses.

Percentage of Hispanic-Owned Small Businesses - Total 35 Points

The B2B Reviews research team gathered the total number of small businesses in each state and determined how many are Hispanic-owned using SBA data. We then determined the percentage of Hispanic-owned businesses. States with a greater percentage of Hispanic-owned businesses scored higher.

Hispanic Small Businesses Per Capita - Total 30 Points

We compared the number of Hispanic-owned small businesses to the total Hispanic population to get insights into business growth within the Hispanic community. Using the number of Hispanic-owned businesses, we calculated how many there were per 100,000 Hispanic people. States with a larger concentration of businesses per 100,000 Hispanic people earned a better score.

Percent Increase of Hispanic-Owned Small Businesses - Total 20 Points

We gathered the number of Hispanic-owned small businesses in 2022 and 2023, found the difference, and determined the percent increase. We assigned higher scores to states with more significant growth.

Estimated Percent of Employees of Hispanic Businesses - Total 15 Points

Using Census Bureau data, we found the number of employees in each state. We then gathered the estimated number of workers employed by Hispanic-owned small businesses to determine the percentage. States where Hispanic-owned businesses had a higher percentage of employed workers scored better.

The Bottom Line

National Hispanic Heritage Month celebrates the histories, cultures, and contributions of American citizens with Hispanic heritage. The observation began in 1968 and has continued to grow since.

Hispanic businesses play a vital role in the American economy. Not only do they contribute more than $800 billion annually, but the more than 375,000 employer companies provide work to more than 2.9 million people.

These businesses are essential to the Hispanic community, and B2B Reviews sought to raise awareness by highlighting which states Hispanic businesses are thriving in most.

This National Hispanic Heritage Month, we encourage consumers to support local Hispanic-owned small businesses:

• Shop at Hispanic-owned businesses: Find local Hispanic-owned businesses in your area, such as restaurants, boutiques, grocery stores, etc., and buy their products or services. Leaving reviews is also a great way to support those businesses.
• Collaborate with Hispanic entrepreneurs: Whether you’re an investor or an event coordinator, collaborating with Hispanic entrepreneurs on projects, events, or marketing campaigns is a great way to build relationships and opportunities for mutual growth.
• Support Hispanic-owned nonprofits and social enterprises: By supporting nonprofits and social enterprises that serve the Hispanic community, you can help empower minority business owners to receive training and resources.
• Collaborate on community initiatives: Similarly, you can work with Hispanic-owned businesses to host or sponsor community service projects, which can help businesses give back to their communities while building stronger local connections.

By actively supporting Hispanic-owned businesses this month and beyond, you can help ensure diverse businesses can grow, strengthening local communities and economies.

Fair Use Statement

If you wish to share our findings, please do so for non-commercial purposes only and provide a link back to this report so readers can access our methodology.

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