Hispanic Division
Market Will Follow Rise in Hispanic Business Ownership
- Eight percent of women business owners in the U.S. are Hispanic.
- Hispanic women-owned businesses are growing at more than 2.5 times the national rate.
- Hispanic women are leading the growth in Latino-owned businesses.
- By 2010, Hispanics will make up nearly one-third of the U.S. buying market.
- Arizona ranks fourth in Hispanic population in the U.S., with more than 1.8 million.
- The median age of Hispanics in the U.S. is 24, compared with 38 for non-Hispanics.
- Hispanic-owned businesses are growing at more than three times the rate of all other businesses in the U.S.
- Hispanics are knowledgeable about modern technology and spend more time and money on technology, such as mobile services, than non-Hispanics.
The Hispanic market continues to grow in terms of population, educational levels, technology use, business ownership, affluence and political impact. Such growth points to a dynamically expanding market segment that will continue to have a substantial impact on Arizona's pursuit of economic success and prosperity. Hispanic-owned businesses are flourishing and rapidly adding to the entrepreneurial landscape in Arizona. A domino effect of positive economic impact leads to greater consumer choices, healthy business competition and overall economic stability. It is important to know and understand the profound effect the Hispanic influence has on our economic growth as both consumers and as business owners.
Understanding The Culture
To meet this growing market segment, we need to understand the Hispanic culture. The nucleus of the Hispanic culture is the family, which includes parents, children and extended family members - all of whom feel a moral responsibility to aid family members who are experiencing financial problems, unemployment or poor health.
Hispanics continue to be the youngest ethnic group in the United States, with the median age averaging 14 years younger than non-Hispanics. Their cultural roots affect business and purchasing decisions. In a recent study, almost three-quarters of Latinos confirmed their roots and heritage are more important to them today than they were five years ago.
For companies to capitalize on the growing Hispanic community, they need to develop a connection with these values by crafting culturally relevant marketing campaigns, which should focus on two things: family and brand loyalty. Once a product or company breaks through the first two barriers, word of mouth will take over. Companies that have successfully bridged the cultural barrier are Qwest Communications Inc.; Cricket, a cellular phone company that has twice the number of Hispanic customers as its closest competitor; and M&I Bank, which has 60 percent more Hispanic depositors than its closest rival.
Business To Grow By 42%
Statistics show the Hispanic movement continues to grow in both population and household income. The Latin population leads all other ethnic groups by 1.5 times the national average in household income, earning more than $100,000 a year. According to recent estimates by HispanTelligence, the research arm of Hispanic Business magazine, the number of Hispanic-owned businesses in the U.S. is expected to grow by 41.8 percent in the next six years, to 4.3 million, with total revenue surging 39 percent, to more than $539 billion.
Companies that successfully build the loyalty of this market segment and deliver products and services to meet their economic needs will enjoy a very financially rewarding future. Once you have won this customer base, it is almost impossible for a competitor to convince them to switch brands.
El mercado esta vivo - the market is alive!
Print This Article 
Forward To A Friend 
Subscribe To RSS Feed
