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Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
Hispanic Economy 2005 Table Content And Sample Pages
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Hispanic Economy 2005 Table Content And Sample Pages

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Hispanic Economy 2005 Table Content And Sample Pages

Hispanic Economy 2005 Table Content And Sample Pages

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  • 1. THE U.S. HISPANIC ECONOMY IN TRANSITION: Facts, Figures, and Trends
  • 2. TABLE OF CONTENTS INTRODUCTION ..................................................................................................................................................1 EXECUTIVE SUMMARY................................................................................................................................3 Part I: POPULATION THE LARGEST MINORITY: Hispanics Are the Fastest-Growing Ethnic Group ..............................................12 SECOND-GENERATION WAVE: Native-Born and Foreign-Born Consumers ................................................13 TOP STATES: The Geography of Hispanic Settlement ........................................................................................14 FROM AROUND THE WORLD: Country of Origin Defines Subgroups ..........................................................16 CLOSE TO HOME: Hispanics Tend to Settle Near Their Country of Origin ....................................................17 Part II: HOUSEHOLD BIG FAMILY: Hispanics at Home: Demographic Trends ......................................................................................20 INSIDE THE HOUSE: Ethnic Subgroups Differ by Age......................................................................................21 WEDDINGS WIN: Marriage is Dominant Household Type ................................................................................22 DIVERSITY AT HOME: Comparison of Households by Ethnicity ....................................................................23 IN THE PEW: Assimilation Changes Religious Profile..........................................................................................24 Part III: LABOR FORCE THE WORKFORCE PIE: Hispanics Account for Nearly One-Third of New Workers ....................................28 UNEMPLOYMENT GAP NARROWS: Gender, Geography Impact Opportunity ............................................29 THE ‘G’ FACTOR: First Generation Fares Better Since 2001 ..............................................................................30 FINDING WORK: Highs and Lows of Labor-Force Participation........................................................................30 CAREER LIFE CYCLE: Hispanic Workers Skew Young ......................................................................................31 LEARNING TO EARN: Education Yields Higher Income....................................................................................32 HOT JOBS: Sales and Service Account for Nearly Half of Hispanic Employment ............................................32 SKILLS FOR THE 21st CENTURY: Employment Growth Since 2000 ............................................................34 A STRIKING SURPRISE: Hispanic Employment Surges Despite Slow Economy............................................34 Part IV: CONSUMER MARKETS GROWING DOLLARS: Hispanic Consumers as Economic Force ....................................................................40 PURCHASING POWER: Disposable Income Continues to Climb ....................................................................41 MELTING POT MIX: Hispanics Fuel Minority Purchasing Power ......................................................................42 MONEY ON THE MAP: California, Texas Concentrate Hispanic Dollars ........................................................42 SPENDING RISE: Hispanic Consumers Are Buying More ................................................................................44 HOT ON THE PLATE: Hispanics Spend More on Food ....................................................................................44 REVVED UP PURCHASES: Spending on New Vehicles Grows ......................................................................46 AFFLUENT DRIVERS: Leasing and Luxury Autos Popular Among Upscale Hispanics ..................................47 HOME SWEET HOME: Hispanics Buy More Household Items ........................................................................48 EXPANDING PORTFOLIOS: Rising Hispanic Net Worth Draws Finance Industry’s Attention ....................49 THE U.S. HISPANIC ECONOMY IN TRANSITION III
  • 3. TABLE OF CONTENTS Part V: WEALTH THE AFFLUENT CLASS: Hispanic Household Income Levels Rising ..............................................................52 MIDDLE-CLASS GROWTH: Crossing the Poverty Line ....................................................................................53 AGGREGATE INCOME: A National Pie, Sliced by State ....................................................................................54 ASSETS AND HOMEOWNERSHIP: Trend Toward Diversification, Financial Planning ..............................55 AGGREGATED NET WORTH: Hispanics Gain Cumulative Strength ..............................................................58 THE GEOGRAPHY OF WEALTH: Income Distribution Across States, Major Cities ......................................59 DALLAS-FORT WORTH: Matching the National Profile ..........................................................................60 LOS ANGELES: Hispanics Find California Gold ......................................................................................60 MIAMI-FORT LAUDERDALE: Upscale in South Florida ..........................................................................61 NEW YORK: The City of Highs and Lows ....................................................................................................61 CHICAGO: Big in the Middle ........................................................................................................................62 HOTTEST SPOTS: Top ZIP Codes by Hispanic Income ..........................................................................62 Part VI: BUSINESS AND ENTREPRENEURSHIP DRIVING THE HISPANIC ECONOMY: Entrepreneurial Engine for Growth ................................................66 MINORITY-OWNED FIRMS: Growing Rapidly in Number, But Revenues Still Lag ........................................66 MOSTLY SOLE PROPRIETORSHIPS: Legal Organization of Hispanic Companies ....................................67 EMPLOYMENT: Large Firms Hire More ..............................................................................................................68 LEADING INDUSTRIES: Service Sector Most Prevalent ..................................................................................69 IN THE SOUTH, IN THE WEST: Geography of Hispanic Entrepreneurship ..................................................71 TOP STATES TODAY: Big Markets for Hispanic Companies ............................................................................71 OWNERSHIP VS. RECEIPTS: Ethnic Breakdown of Hispanic-Owned Firms ..............................................72 A LITTLE HELP FROM THE FEDS: SBA Program Develops Hispanic Firms ................................................72 SBA LOANS: Borrowers Multiply, Dollars Fall ..................................................................................................72 GROWTH AHEAD: Service Sector Leads Future of U.S. Hispanic Economy ....................................................74 INDUSTRIAL STRENGTH: Construction, Retail Sectors Expand ....................................................................75 MULTIPLYING MONEY: Year-Over-Year Revenue Growth Adds Up ................................................................76 NEW ENTREPRENEURS: Women Own Nearly One Third of Hispanic Firms ..............................................77 Part VII: EDUCATION HISPANIC HUMAN CAPITAL: Education Drives Economic Development ....................................................80 A MARKED IMPROVEMENT: Graduation Rates on the Rise ..........................................................................80 EDUCATION BY BIRTH: Native-Born Hispanics More Likely to Graduate than Foreign-Born ....................81 THE UNDER-EDUCATED: Immigrants Outperform Natives in the Workforce ..............................................82 APPROACHING THE NORM: Education Improves for Second and Third Generations ................................82 UP THE IVORY TOWER: Hispanics Pursue College Degrees ............................................................................85 MAJOR DECISIONS: Uptick in Business Degrees ..............................................................................................86 THE SCHOOL-INCOME LINK: Rising Education Means More Disposable Dollars ......................................87 IV THE U.S. HISPANIC ECONOMY IN TRANSITION
  • 4. TABLE OF CONTENTS Part VIII: YOUTH THE YOUNG MARKET: The Hispanic Demographic Wave ..............................................................................90 A BIGGER PIECE OF THE PIE: Youth Market Growing Faster Than U.S. Average ......................................90 IMMIGRANTS NO MORE: Rise of the Second Generation ..............................................................................90 CONSUMER BEHAVIOR: Hispanic Youth Spend on Clothes, Toys ................................................................92 MOVIES, MUSIC, BOOKS: Media Consumption Among Young Hispanics ..................................................93 TECHNOLOGY GAP: Hispanic Youth are Closing the “Digital Divide” ............................................................95 Part IX: POLITICS THE HISPANIC ELECTORATE: A Rapidly Growing Constituency ..................................................................98 PARTISAN POLITICS: Hispanics in Play for Both Parties ................................................................................98 PARTIES AND SUBGROUPS: Nativity, Country of Origin Correlate With Affiliation ................................99 THE ISSUES: Education and Economy Top Priorities ......................................................................................99 SOCIAL HOT BUTTONS: Voters Split on Abortion, Same-Sex Marriage ......................................................101 THE 2000 HISPANIC VOTE: Non-Citizens Skew Official Numbers ............................................................101 POLITICAL EDUCATION: Hispanic Voting Increases With More Education ................................................102 VOTER DEMOGRAPHICS: Age and Gender Impact Participation ................................................................103 THE TURN-OUT QUESTION: Hispanics Find Difficulty in Voting ..............................................................104 LINKING ECONOMICS TO POLITICS: Two Decades of Change ................................................................104 THE CRITICAL HISPANIC VOTE: Grow National, Think Local ..................................................................105 Part X: CULTURE, LANGUAGE, AND MEDIA LIVING IN TWO CULTURES: Acculturation and Assimilation ......................................................................108 GENERATIONAL SHIFT: Children of Immigrants Move to Mainstream ......................................................108 A HYBRID LIFESTYLE: Hispanics Tend to Acculturate More Than Assimilate ............................................109 BEYOND STEREOTYPES: The New Hispanic Consumer ............................................................................110 LANGUAGE: English Dominates ........................................................................................................................110 LEARNING CURVE: Age, Nativity Correlate to Language Adoption ..............................................................111 PURCHASING POWER: Language Determines Disposable Dollars ..............................................................112 MEDIA USAGE: English Usage Accelerating ....................................................................................................113 ADVERTISING: Spending Grows in All Media ..................................................................................................114 TOP MARKETS: Media Consumers Cluster in Metro Areas ............................................................................115 TOP 50 ADVERTISERS: Biggest Spenders: Consumables, Autos, Food, Retail ............................................115 ABOUT HISPANTELLIGENCE ..........................................................................................................117 THE U.S. HISPANIC ECONOMY IN TRANSITION V
  • 5. INTRODUCTION As the U.S. Hispanic economy continues to solidify its U.S. labor force and are expected to increase to growing influence in the 21st century, the ripple effects nearly 20 percent by 2030. In addition, higher-pay- already have begun to profoundly alter the nation’s ing management and professional occupations are the political, social, cultural, and economic structures. fastest-growing job categories for Hispanics, propelled The U.S. Hispanic Economy in Transition: Facts, Figures, by growing educational attainment. All of this comes as and Trends provides a comprehensive examination of the Hispanic employment has grown more than 16 quantitative measures of this market and its qualitative percent since 2000, while overall U.S. employ- characteristics, as well as an interpretation of its expanding ment has barely grown 2 percent. impact and implications for the nation’s future. While Hispanic educational achievements have From academics, marketers, and investors to govern- remained relatively steady, they are slowly closing the edu- ment and elected officials and corporate executives, every- cational gap with non-Hispanics with each successive gen- one has a stake in understanding the broad evolution cur- eration. Educational gains will play a key role in today’s rently under way. The chapters ahead offer a wealth of global economy as Hispanics boost their influence and The U.S. Hispanic Economy in Transition provides an insightful, in-depth look at the complex forces shaping the Hispanic economy. data that provide an insightful, in-depth look at the com- burgeoning purchasing power. So far, Hispanic purchasing plex forces shaping the Hispanic economy. power has increased at a compound annual growth rate of Key among these complexities is the shifting composi- 7.5 percent, more than twice as fast as the 2.8 percent tion of the Hispanic population. No longer simply growth for the total U.S. purchasing power. Hispanic driven by sheer volume – Hispanics now account purchasing power reached $700 billion in 2004 for 13.7 percent of the total U.S. population – and is poised to surge to $1 trillion by 2010. this community’s new dynamics hinge on emerg- This strong domestic economic force represents oppor- ing second and third generations, native- and tunity for companies that can grasp the dynamics of the foreign-born differences, and broad geographic emerging Hispanic market, as well as a challenge for those growth. In such an evolving environment, corporate that fail to move quickly in an increasingly competitive strategies targeting increasingly affluent, second-genera- climate as corporations vie to tap into the rising affluence tion Hispanics are emerging as critical to securing of the Hispanic economy. growth and remaining competitive. The more traditional view of Hispanics as a growing As this population grows and matures, its structure is consumer force also has begun to broaden to a savings changing in almost every way, from educational levels and and investing force. The net worth of U.S. Hispanics labor force composition to household characteristics and surpassed $534 billion in 2000, up more than 30 accumulation of wealth. It is these evolving factors that percent in two years. Although Hispanics concentrate drive the increasing influence of Hispanics in U.S. con- most of their portfolio in homeownership (accounting sumer markets. for nearly 50 percent of household net worth), they are Hispanics account for over 13 percent of the increasingly investing in interest-earning accounts, THE U.S. HISPANIC ECONOMY IN TRANSITION 15
  • 6. INTRODUCTION IRAs, and 401(k) plans. the critical component of cultural identity, which has Driving the increased affluence, in part, is Hispanic served to shape broad aspects of economic, marketing, entrepreneurship. Last year, U.S. Hispanics owned nearly 2 and political perspectives on the market. Now, The U.S. million businesses generating total revenue of $273.8 bil- Hispanic Economy in Transition finds indications that lion – figures that are expected to grow to 3.2 million and acculturation – maintaining a native culture while acquir- $465.6 billion, respectively, by 2010. As Hispanic-owned ing a new one – rather than assimilation – replacing a companies mature, many have begun to enter the “mid- native culture with a new one – is ensuring Hispanic dle-market” stage, facing one of the key challenges for youth remain a separate and distinct economic and politi- growing companies: access to capital. For many sectors, cal force for years to come. this potential growth in Hispanic-owned companies, Ultimately, exactly how all of these complex forces will together with their increasing need for capital, represents shape and define the emerging structure of the U.S. an expanding and powerful opportunity. Hispanic economy over the next several years will affect a Looking towards the future, new generations of broad swath of national public policies from access to Hispanics will force transitions in the U.S. econ- capital and education to diversity in the workplace, gov- omy. Hispanic youth now account for more than 34 ernment procurement, and professional advancement. percent of the total U.S. Hispanic population and The growth, evolution, and dynamic reality of the U.S. more than 18 percent of the total U.S. youth popu- Hispanic economy are clear. In the chapters ahead, we lation. More than 86 percent of those have been born in offer the qualitative and quantitative information needed the United States, and although they may retain many cul- to provide insight into its course for the future. tural traits from their parents, they will be English-domi- nant. By 2020, Hispanic youth are expected to increase to Juan B. Solana more than 23 percent of the total U.S. youth population. Santa Barbara, California With the maturation of this segment comes a shift in March 2005 ACKNOWLEDGMENTS The U.S. Hispanic Economy in Transition was written and produced by HispanTelligence®, the research division of Hispanic Business Inc.® (HBI), but a resource of this magnitude could not have been possible without the collaboration of a broad team. For more than a year, Dr. Juan Solana, head of HispanTelligence, has directed research and completion of the publication. During preparation of the manuscript, vital contributions were made by Judi Erickson, who edited and managed the project. Key editing and additional contributions were made by Joel Russell and Nancy Lackey Shaffer of HBI’s editorial team. Kenneth Whitney, an HBI creative director, designed the layout and numerous charts and tables as well as the cover. Vaughn Hagerty, the magazine’s division director, reviewed early manu- scripts and allocated significant resources to the effort. Special thanks go to HBI Business Economist J. Tabin Cosio and HBI Business Analyst Veronica Spadoni, who researched and prepared the manuscript. Additional research was provided by Senior Research Assistant Cynthia Márquez and Research Supervisor Michael Caplinger. Finally, thanks go to HBI CEO and publisher Jesús Chavarría, who provided long-standing expertise in the market, reviewed and commented on the final manuscript, and supported the project throughout the process. 16 THE U.S. HISPANIC ECONOMY IN TRANSITION
  • 7. HOUSEHOLD HISPANIC HOUSEHOLD PROFILE MEXICAN YOUTH MOVEMENT Average Number of People: 3.5 Median Age, by Hispanic Origin Type Average Number of People Age 18 or Less: 1.2 50 Percent of Family Households: 81.1% Percent of Hispanic Pop. (Age 15+) Married: 55% 42.7 Percent Owning Home: 47.5% 40 Average Income: $44,468 Source: U.S. Census Bureau, Current Population Surveys. age 3.4 persons, with 1.6 of those being wage earners, while 30 29.0 29.4 the typical non-Hispanic household has 2.4 persons of 27.6 whom 1.3 are wage earners.iii And while nearly a third of all 24.7 Age Hispanic households have five or more people, only one 20 tenth of non-Hispanic households fall into that category. Also, Hispanic households contain more young peo- ple than non-Hispanic homes. While 34 percent of Hispanics are younger than 18, only 31 percent of 10 THE HISPANIC YOUTH BOOM Various Subgroups of Hispanic Population, by Age 0 Mexican Puerto Rican Cuban Central and Other South Hispanic Under 18 years 18 – 65 years 65 years and over American 100 Source: U.S. Census Bureau, Current Population Survey, March 2002, Ethnic and 4 6.6 22.6 4.2 6.3 Hispanic Statistics Branch, Population Division. 58.9 67.7 60 62.8 African Americans and 25 percent of the total U.S. pop- 80 ulation are in the same age range. 57.8 Young, large families determine much of Hispanic consumer behavior. Demographics indicate Percentage 60 Hispanics will become an increasingly important segment in the youth market, and as they mature, in big-ticket product categories such as automotive, finan- 40 cial services, housing, and family entertainment. 37.1 33.7 30.6 28.1 20 19.6 INSIDE THE HOUSE ETHNIC SUBGROUPS DIFFER BY AGE 0 Mexican Puerto Rican Cuban Central and Other Distinct age differences emerge among Hispanic sub- South Hispanics American groups. More than 20 percent of Cubans are 65 or older, Source: U.S. Census Bureau: Table 2: Selected Age Groups for the Population by Race while a scant 4 percent of Mexicans are in that age and Hispanic Origin for the United States: July 2003. THE U.S. HISPANIC ECONOMY IN TRANSITION 21
  • 8. HOUSEHOLD Nearly 68 percent of U.S. Hispanic households are headed by married couples. MOM AND/OR DAD Hispanic households, and 13 percent of non-Hispanic Households, by Ethnicity and Family Type white households are headed by single women. In all ethnic groups, it is much more common for women 82 80 than for men to be sole household heads. Non-Hispanic White Among Hispanic subgroups, Puerto Ricans have the 68 Hispanic smallest percentage of households headed by married African American 60 couples and the greatest proportion headed by females with no spouse present. Cubans have the greatest per- Percentage 48 centage of households headed by married couples and 43 the lowest percentage of either females or males as sole 40 household heads. DIVERSE HOUSEHOLDS 23 20 Households, by Ethnicity and Family Type 13 Married couple 9 9 Female householder, no spouse 6 Male householder, no spouse 80 0 75 Married Couple Female Householder Male Householder 70 70 Source: U.S. Census Bureau, Current Population Survey, March 2002, PGP-5. 67 bracket. On the other hand, 37 percent of Mexicans and 60 31 percent of Puerto Ricans are younger than 18, com- 52 pared with just 20 percent of Cubans. 50 Similarly, Mexicans have a lower median age of 24.7, Percentage while Cubans have a median age of 42.7, much higher 40 38 than the median age of 35.9 of the total U.S. population. 30 WEDDINGS WIN 24 20 30 MARRIAGE IS DOMINANT HOUSEHOLD TYPE 17 Nearly 68 percent of U.S. Hispanic households are 10 10 10 9 8 headed by married couples. Among non-Hispanic whites, the corresponding figure is 82 percent, while 0 Mexicans Puerto Ricans Cubans Central and among African Americans it is 48 percent. About 43 South Americans percent of African-American households, 23 percent of Source: U.S. Census Bureau, Current Population Survey, March 2002, PGP-5. 22 THE U.S. HISPANIC ECONOMY IN TRANSITION
  • 9. CONSUMER MARKETS U.S. Hispanic purchasing power is expected to rise by $491 billion, which would account for nearly 73 percent of the total increase in purchasing power of U.S. minorities in this decade. currently accounts for 8.5 percent of total U.S. disposable MBDA estimates. As the 21st century progresses, the income and will grow to almost 11 percent by 2010. income disparity between minorities and the U.S. norm The growth of Hispanic spending power continues a is also expected to decrease. Hispanic consumer prefer- trend that began in the mid-1980s. While the growth rate ences will be a major factor in the diversity-based U.S. of Hispanic purchasing power is expected to slow slightly economy of the 21st century. in the coming years, projections for 2010 should still reflect an increase of more than 40 percent over 2001. MONEY ON THE MAP CALIFORNIA, TEXAS CONCENTRATE HISPANIC MELTING POT MIX DOLLARS HISPANICS FUEL MINORITY PURCHASING POWER California has $157.6 billion in Hispanic purchasing power, The Minority Business Development Agency (MBDA) accounting for more than 22 percent of the total for all U.S. estimates total disposable personal income of minorities Hispanics. Texas ranks second with $84.8 billion. Together, in the United States will reach $2 trillion by 2010, an California and Texas account for more than 34 per- increase of 51 percent from 2000. During the same cent of all Hispanic purchasing power and nearly period, U.S. Hispanic purchasing power is expected to half of the entire U.S. Hispanic population. rise by $491 billion, which would account for nearly 73 Additionally, employment rates for Hispanics in percent of the total increase in the purchasing power of California and Texas are generally higher than in other U.S. minorities this decade. states. Recent Bureau of Labor Statistics data show By 2010, minorities will control one fourth of the 64.3 percent of California-based Hispanics and 62.6 purchasing power in the U.S. economy, according to percent of Texas-based Hispanics are employed (see HISPANIC PURCHASING POWER FUELS INCREASES U.S. Minority Purchasing Power ($B): 2000-2010 U.S. Minorities U.S. Hispanics Hispanic as a % of Minority Purchasing Power 2000 $1,329 $564 42.44% 2005 $1,649 $768 46.57% 2010 $2,003 $1,055 52.67% Purchasing Power Increases Hispanic as a % of Minority Increase 2000-2005 $320 $204 63.75% 2005-2010 $354 $287 81.07% 2000-2010 $674 $491 72.85% Source: HispanTelligence, “U.S. Hispanic Purchasing Power: 1978-2010,” May 2004; and Minority Business Development Agency, “Minority Purchasing Power: 2000-2045,” September 2000. 42 THE U.S. HISPANIC ECONOMY IN TRANSITION
  • 10. WEALTH THE AFFLUENT CLASS A closer look at the data shows Hispanics moving up HISPANIC HOUSEHOLD INCOME LEVELS RISING through the income brackets. The percentage of house- holds in the lower-income bracket ($34,999 or less) Robust immigration and high fertility rates increased decreased from 64.3 percent in 1972 to 52.1 percent in the number of U.S. Hispanic households from 2.7 mil- 2002. On the other end of the spectrum, the proportion lion in 1972 to 11.3 million by 2002. At the same time, of Hispanic households earning more than $100,000 mean household income among Hispanics showed an increased from 1.5 percent to 7.2 percent, while the impressive growth rate of 36.5 percent in real dollars. middle-income bracket ($35,000 to $99,999) expanded Although large numbers of new immigrants entered the from 34.2 percent to 40.7 percent. labor market at low wage levels, the mean income of Aside from income growth, wealth building involves Hispanic households increased from $32,873 in the accumulation of assets such as home equity and 1972 to $44,887 in 2002i. securities. Hispanics have made progress here, too, INCREASING WEALTH Hispanic Household Income Brackets Income Brackets, No. of Hispanic as a % of All Hispanic Households Year HHs (millions) Median Income Mean Income $0-$34,999 $35,000-$99,999 $100,000+ 2002 11.3 $33,103 $44,887 52.1% 40.7% 7.2% 1992 7.2 $28,384 $36,204 61.1% 35.0% 3.9% 1982 4.1 $27,078 $33,419 62.9% 34.9% 2.2% 1972 2.7 $28,384 $32,873 64.3% 34.2% 1.5% Source: HispanTelligence® Calculations from U.S. Census. “Money Income in the United States: 2003.” THE MOVE TO UPPER AND MIDDLE INCOME CLASSES Distribution of Income for Hispanic Households, 1982 – 2002 20 Year 2002 Percentage of Hispanic Population Year 1982 15 10 5 0 Under $5,000 to $10,000 to $15,000 to $25,000 to $35,000 to $50,000 to $75,000 to $100,000 $5,000 $9,999 $ 14,999 $24,999 $34,999 $49,999 $74,999 $99,999 and over Source: U.S. Census, “Money Income in the United States:2003” Table HINC-02. 52 THE U.S. HISPANIC ECONOMY IN TRANSITION
  • 11. BUSINESS AND ENTREPRENEURSHIP The Hispanic economy is COMPANY GROWTH poised to outperform the Number of Hispanic-Owned Firms, 1987–2010 general economy for the next several years. 3,500 3,175 3,000 GROWTH AHEAD 2,736 SERVICE SECTOR LEADS FUTURE OF U.S. 2,500 HISPANIC ECONOMY 2,362 Hispanic-owned companies represent an increasingly 2,000 2,042 Thousands important component of the U.S. enterprise economy. 1,767 HispanTelligence estimates that the number of 1,528 1,500 Hispanic-owned firms soared to 2 million in 2004, with business receipts of $273.8 billion. The figures 1,121 represent an 82 percent increase in the number of 1,000 863 Hispanic-owned firms and an 81 percent increase (inflation-adjusted) in business receipts since the most 500 490 recent Census Survey of Minority-Owned Business Enterprises in 1997. The Hispanic economy is poised to outperform the 0 1987 1992 1997 2000 2002 2004 2006 2008 2010 general economy for the next several years. With their increasing population and rising levels of education, Source: U.S. Economic Census 1987-1997 and HispanTelligence projections 2004–2010. SERVICE SECTOR STRENGTH Growth of Hispanic-Owned Companies % of Total Firms 2000 2004 2010 No. of New Firms 2000-2010 % of Total Increase Agricultural 4.7% 5.0% 5.4% 100,754 6.1% Construction 12.5% 12.5% 12.3% 201,066 12.3% Manufacturing 2.5% 2.5% 2.6% 43,092 2.6% Transportation 6.3% 6.4% 6.5% 111,449 6.8% Wholesale 3.2% 3.5% 4.2% 85,045 5.2% Retail 10.5% 8.9% 6.7% 52,277 3.2% Finance 7.4% 8.1% 9.2% 177,249 10.8% Service 48.1% 48.9% 49.8% 846,048 51.3% Other 4.8% 4.2% 3.3% 30,843 1.9% Total 1,647,825 100% Source: HispanTelligence projections 2000-2010, based on data from the U.S. Economic Census, adjusted to reflect undercount; since data prior to 1997 did not include C corpora- tions, HispanTelligence has excluded those companies to allow for comparable comparison. 74 THE U.S. HISPANIC ECONOMY IN TRANSITION
  • 12. About HispanTelligence The U.S. Hispanic Economy in Transition was written and produced by HispanTelligence®, the research division of Hispanic Business Inc.® We have taken special care to include the latest information available from the Census Bureau and other government and private research sources, in addition to HispanTelligence proprietary research. Since 1979, the Hispanic Business Inc. research division has helped corporations, media organizations, and marketing agencies track and analyze data on the U.S. Hispanic and Latin American markets. We perform custom survey design and implementation to identify strategic opportunities for firms selling to the Hispanic market. Working with both public- and private-sector organizations, HispanTelligence can also provide custom reports and intelligence on U.S. Hispanic consumers and companies. For special projects, our Board of Economists – a panel of nation- ally known experts on various aspects of the Hispanic economy – is available for consultation. Further information can be found at www.hispanicbusiness.com. To contact HispanTelligence, e-mail research@hbinc.com or call From left to right: J. Tabin Cosio, Veronica Spadoni, Mike (805) 964-4554, extension 605. Caplinger, Juan Solana, and Cynthia Márquez The U.S. Hispanic Economy in Transition was researched by Chief Economist Juan Solana, Business Economist J. Tabin Cosio, Business Analyst Veronica Spadoni, Research Supervisor Michael Caplinger, and Senior Research Assistant Cynthia Márquez; the manuscript was edited by Nancy Lackey Shaffer, Judi Erickson, and Joel Russell; Kenneth Whitney provided creative services/production. The entire manuscript was critically reviewed at all stages of development by the editor of Hispanic Business® magazine, Jesús Chavarría. HispanTelligence believes its data and text to be reliable, but accuracy is not warranted or guaranteed. The U.S. Hispanic Economy in Transition may include facts, views, opinions, and recommendations of individuals and organ- izations deemed of interest. HispanTelligence does not guarantee the accuracy, completeness, or timeliness of, or otherwise endorse, these views, opinions, or recommendations. The U.S. Hispanic Economy in Transition is provided on an “as-is” basis. HispanTelligence expressly disclaims all warranties of any kind, expressed or implied, including without limitation any warranty of merchantability, fitness for a particular purpose, or non-infringement. Copyright ©2005 Hispanic Business Inc., Santa Barbara, California, and HispanTelligence, Santa Barbara, California. All rights reserved. THE U.S. HISPANIC ECONOMY IN TRANSITION 117

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