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 28% of the U.S. population by 2060 — translating into large buying power. In addition, nearly one in four new businesses is Hispanic-owned.
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 the Hispanic entrepreneurship rate to Hispanic income growth to the share of Hispanic-owned businesses.
Main Findings
Best Cities for Hispanic Entrepreneurs
Overall Rank |
City |
Total Score |
Hispanic Business-Friendliness |
Hispanic Purchasing Power |
---|---|---|---|---|
1 | Orlando, FL | 67.42 | 2 | 18 |
2 | Miami, FL | 64.72 | 1 | 103 |
3 | Pembroke Pines, FL | 64.59 | 4 | 37 |
4 | Cape Coral, FL | 64.45 | 7 | 15 |
5 | Fort Lauderdale, FL | 64.05 | 3 | 67 |
6 | Port St. Lucie, FL | 62.86 | 8 | 17 |
7 | Hialeah, FL | 61.87 | 5 | 94 |
8 | Santa Clarita, CA | 58.66 | 31 | 3 |
9 | Tampa, FL | 58.58 | 6 | 121 |
10 | Albuquerque, NM | 58.21 | 9 | 101 |
11 | Laredo, TX | 58.02 | 24 | 11 |
12 | Amarillo, TX | 57.03 | 12 | 59 |
13 | Las Cruces, NM | 56.44 | 10 | 127 |
14 | Nampa, ID | 56.29 | 38 | 14 |
15 | Ontario, CA | 56.02 | 17 | 40 |
16 | St. Petersburg, FL | 55.84 | 11 | 102 |
17 | Riverside, CA | 55.52 | 15 | 46 |
18 | West Valley City, UT | 54.93 | 36 | 23 |
19 | San Antonio, TX | 54.44 | 18 | 75 |
20 | Denver, CO | 54.42 | 21 | 49 |
21 | Moreno Valley, CA | 54.39 | 37 | 30 |
22 | Oklahoma City, OK | 54.25 | 23 | 48 |
23 | Corpus Christi, TX | 54.24 | 16 | 84 |
24 | Fontana, CA | 54.05 | 44 | 25 |
25 | Fort Worth, TX | 54.02 | 54 | 16 |
26 | Sioux Falls, SD | 53.92 | 13 | 116 |
27 | Columbus, OH | 53.88 | 61 | 26 |
28 | Rancho Cucamonga, CA | 53.61 | 46 | 29 |
29 | Jacksonville, FL | 53.56 | 60 | 19 |
30 | Atlanta, GA | 53.52 | 66 | 13 |
31 | Cheyenne, WY | 53.51 | 56 | 20 |
32 | Chandler, AZ | 53.34 | 101 | 2 |
33 | Gilbert, AZ | 53.32 | 107 | 1 |
34 | Boise, ID | 53.10 | 26 | 62 |
35 | Austin, TX | 52.90 | 48 | 34 |
36 | Aurora, CO | 52.89 | 49 | 31 |
37 | Tallahassee, FL | 52.76 | 19 | 106 |
38 | St. Louis, MO | 52.56 | 64 | 21 |
39 | Irvine, CA | 52.28 | 92 | 9 |
40 | Peoria, AZ | 52.14 | 103 | 4 |
41 | Charlotte, NC | 51.98 | 51 | 42 |
42 | Missoula, MT | 51.97 | 22 | 108 |
43 | San Bernardino, CA | 51.93 | 45 | 56 |
44 | Grand Prairie, TX | 51.90 | 59 | 35 |
45 | El Paso, TX | 51.83 | 25 | 97 |
46 | Santa Ana, CA | 51.81 | 32 | 83 |
47 | Charleston, SC | 51.81 | 98 | 8 |
48 | Rapid City, SD | 51.73 | 14 | 131 |
49 | Bakersfield, CA | 51.61 | 35 | 90 |
50 | Mesa, AZ | 51.35 | 62 | 39 |
51 | Arlington, TX | 51.10 | 50 | 60 |
52 | Scottsdale, AZ | 51.05 | 105 | 7 |
53 | Irving, TX | 50.91 | 55 | 58 |
54 | Casper, WY | 50.87 | 28 | 115 |
55 | Henderson, NV | 50.87 | 131 | 5 |
56 | Chesapeake, VA | 50.87 | 127 | 6 |
57 | Overland Park, KS | 50.73 | 108 | 10 |
58 | Anaheim, CA | 50.71 | 32 | 109 |
59 | Oxnard, CA | 50.36 | 52 | 78 |
60 | Dallas, TX | 50.16 | 53 | 79 |
61 | Aurora, IL | 50.00 | 34 | 123 |
62 | Tulsa, OK | 49.97 | 27 | 134 |
63 | Santa Rosa, CA | 49.72 | 67 | 53 |
64 | Fort Smith, AR | 49.49 | 47 | 114 |
65 | Salt Lake City, UT | 48.97 | 42 | 132 |
66 | Brownsville, TX | 48.89 | 83 | 45 |
67 | Reno, NV | 48.85 | 71 | 70 |
68 | Nashville, TN | 48.80 | 78 | 50 |
69 | Raleigh, NC | 48.71 | 75 | 64 |
70 | Durham, NC | 48.65 | 73 | 71 |
71 | Plano, TX | 48.41 | 123 | 22 |
72 | Tucson, AZ | 48.33 | 40 | 139 |
73 | Colorado Springs, CO | 48.27 | 70 | 86 |
74 | Houston, TX | 48.26 | 57 | 122 |
75 | Montgomery, AL | 48.18 | 30 | 145 |
76 | Mobile, AL | 48.12 | 82 | 74 |
77 | Long Beach, CA | 48.09 | 29 | 151 |
78 | Virginia Beach, VA | 48.01 | 125 | 24 |
79 | Juneau, AK | 47.69 | 41 | 141 |
80 | Fargo, ND | 47.63 | 20 | 159 |
81 | Huntington Beach, CA | 47.55 | 79 | 89 |
82 | Newport News, VA | 47.39 | 132 | 27 |
83 | Chicago, IL | 47.24 | 43 | 147 |
84 | Kansas City, MO | 47.06 | 91 | 77 |
85 | Portland, OR | 47.03 | 68 | 120 |
86 | Birmingham, AL | 46.95 | 69 | 118 |
87 | Fremont, CA | 46.93 | 99 | 52 |
88 | Oceanside, CA | 46.85 | 72 | 112 |
89 | Madison, WI | 46.84 | 167 | 12 |
90 | Columbus, GA | 46.73 | 95 | 87 |
91 | Chula Vista, CA | 46.73 | 84 | 99 |
92 | Garland, TX | 46.62 | 106 | 47 |
93 | Las Vegas, NV | 46.54 | 74 | 117 |
94 | Garden Grove, CA | 46.51 | 94 | 91 |
95 | North Las Vegas, NV | 46.50 | 139 | 33 |
96 | Little Rock, AR | 46.48 | 76 | 124 |
97 | Washington, DC | 46.45 | 147 | 28 |
98 | Lubbock, TX | 46.35 | 104 | 65 |
99 | Tempe, AZ | 46.24 | 135 | 38 |
100 | Huntsville, AL | 46.15 | 85 | 111 |
101 | Richmond, VA | 46.10 | 100 | 82 |
102 | Columbia, MD | 45.95 | 149 | 32 |
103 | Lincoln, NE | 45.90 | 111 | 68 |
104 | Vancouver, WA | 45.87 | 110 | 69 |
105 | Los Angeles, CA | 45.79 | 39 | 165 |
106 | Spokane, WA | 45.74 | 141 | 44 |
107 | Jackson, MS | 45.67 | 77 | 128 |
108 | Phoenix, AZ | 45.51 | 115 | 76 |
109 | Tacoma, WA | 45.50 | 118 | 81 |
110 | Sacramento, CA | 45.37 | 150 | 36 |
111 | New Orleans, LA | 45.10 | 117 | 88 |
112 | Norfolk, VA | 45.03 | 112 | 96 |
113 | Louisville, KY | 44.89 | 156 | 41 |
114 | Seattle, WA | 44.87 | 148 | 51 |
115 | Wichita, KS | 44.74 | 90 | 129 |
116 | Des Moines, IA | 44.62 | 145 | 57 |
117 | Stockton, CA | 44.44 | 114 | 107 |
118 | San Diego, CA | 44.37 | 81 | 144 |
119 | Burlington, VT | 44.33 | 171 | 73 |
120 | Glendale, AZ | 44.27 | 115 | 105 |
121 | Salem, OR | 44.05 | 133 | 100 |
122 | South Burlington, VT | 43.98 | 96 | 142 |
123 | Columbia, SC | 43.78 | 102 | 126 |
124 | Indianapolis, IN | 43.68 | 157 | 66 |
125 | Shreveport, LA | 43.58 | 158 | 61 |
126 | Grand Rapids, MI | 43.47 | 80 | 155 |
127 | Greensboro, NC | 43.45 | 146 | 91 |
128 | Oakland, CA | 43.35 | 138 | 104 |
129 | Fresno, CA | 43.27 | 87 | 148 |
130 | Cincinnati, OH | 43.16 | 129 | 119 |
131 | Portland, ME | 43.03 | 97 | 143 |
132 | Modesto, CA | 42.81 | 120 | 136 |
133 | Yonkers, NY | 42.80 | 86 | 156 |
134 | San Jose, CA | 42.78 | 151 | 98 |
135 | Augusta, GA | 42.61 | 159 | 80 |
136 | Springfield, MO | 42.34 | 93 | 157 |
137 | Dover, DE | 42.26 | 161 | 72 |
138 | Cedar Rapids, IA | 42.24 | 152 | 113 |
139 | Jersey City, NJ | 42.13 | 122 | 140 |
140 | Glendale, CA | 41.86 | 88 | 161 |
141 | Billings, MT | 41.75 | 143 | 130 |
142 | San Francisco, CA | 41.71 | 140 | 133 |
143 | Charleston, WV | 41.48 | 63 | 172 |
144 | Fort Wayne, IN | 41.44 | 170 | 85 |
145 | Baltimore, MD | 41.39 | 136 | 138 |
146 | Chattanooga, TN | 41.31 | 169 | 95 |
147 | Omaha, NE | 41.15 | 178 | 43 |
148 | Warwick, RI | 41.08 | 175 | 54 |
149 | Winston-Salem, NC | 41.00 | 155 | 135 |
150 | Minneapolis, MN | 40.99 | 174 | 55 |
151 | Gulfport, MS | 40.75 | 89 | 169 |
152 | Manchester, NH | 40.67 | 121 | 158 |
153 | Nashua, NH | 40.62 | 126 | 154 |
154 | Lexington-Fayette, KY | 40.01 | 177 | 93 |
155 | Knoxville, TN | 39.96 | 180 | 63 |
156 | Baton Rouge, LA | 39.77 | 144 | 150 |
157 | Wilmington, DE | 39.48 | 113 | 167 |
158 | Anchorage, AK | 39.39 | 153 | 149 |
159 | Pearl City, HI | 39.38 | 109 | 168 |
160 | Pittsburgh, PA | 39.29 | 162 | 137 |
161 | Honolulu, HI | 39.05 | 130 | 164 |
162 | New York, NY | 39.05 | 58 | 181 |
163 | Philadelphia, PA | 39.03 | 128 | 166 |
164 | St. Paul, MN | 38.80 | 176 | 110 |
165 | Memphis, TN | 38.22 | 173 | 125 |
166 | Milwaukee, WI | 38.18 | 166 | 146 |
167 | Bismarck, ND | 37.40 | 65 | 179 |
168 | Huntington, WV | 37.06 | 160 | 163 |
169 | Fayetteville, NC | 36.86 | 163 | 160 |
170 | Newark, NJ | 36.81 | 124 | 174 |
171 | Lewiston, ME | 36.74 | 172 | 153 |
172 | Akron, OH | 36.59 | 137 | 170 |
173 | Boston, MA | 35.92 | 119 | 176 |
174 | Worcester, MA | 35.31 | 181 | 152 |
175 | Toledo, OH | 35.08 | 142 | 175 |
176 | Detroit, MI | 35.02 | 134 | 177 |
177 | Buffalo, NY | 34.22 | 165 | 171 |
178 | Providence, RI | 32.95 | 182 | 162 |
179 | Bridgeport, CT | 32.32 | 164 | 178 |
180 | Rochester, NY | 31.90 | 154 | 182 |
181 | New Haven, CT | 31.51 | 179 | 173 |
182 | Cleveland, OH | 30.58 | 168 | 180 |
Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that city, where a rank of 1 represents the best conditions for that metric category.
- Highest
- T-1. Gilbert, AZ
- T-1. Chandler, AZ
- T-1. Chesapeake, VA
- T-1. Scottsdale, AZ
- T-1. Shreveport, LA
- Lowest
- 178. Boston, MA
- 179. Buffalo, NY
- 180. Rochester, NY
- 181. New York, NY
- 182. Bismarck, ND
- Highest
- T-1. Miami, FL
- T-1. Hialeah, FL
- T-1. Pembroke Pines, FL
- T-1. Fort Lauderdale, FL
- T-1. St. Louis, MO
- Lowest
- 165. Huntsville, AL
- 166. New Haven, CT
- 167. Fayetteville, NC
- 168. Lewiston, ME
- 169. Billings, MT
- Highest
- 1. Hialeah, FL
- 2. Laredo, TX
- 3. Brownsville, TX
- 4. El Paso, TX
- 5. Santa Ana, CA
- Lowest
- 178. Portland, ME
- 179. Lewiston, ME
- 180. Huntington, WV
- 181. Jackson, MS
- 182. Charleston, WV
- Highest
- T-1. Burlington, VT
- T-1. Shreveport, LA
- 3. Missoula, MT
- 4. St. Louis, MO
- 5. Jackson, MS
- Lowest
- 178. Casper, WY
- 179. Pearl City, HI
- T-180. Juneau, AK
- T-180. Charleston, WV
- T-180. Bismarck, ND
- Lowest
- T-1. Mobile, AL
- T-1. Huntsville, AL
- T-1. Portland, ME
- T-1. Charleston, SC
- T-1. Casper, WY
- Highest
- T-177. Detroit, MI
- T-177. Cleveland, OH
- T-177. Toledo, OH
- T-177. Rochester, NY
- T-177. Akron, OH
- Highest
- 1. South Burlington, VT
- 2. Burlington, VT
- 3. Washington, DC
- 4. Pittsburgh, PA
- 5. Tallahassee, FL
- Lowest
- 178. Garland, TX
- 179. Bridgeport, CT
- 180. San Bernardino, CA
- 181. Gulfport, MS
- 182. Stockton, CA
- Highest
- T-1. Laredo, TX
- T-1. El Paso, TX
- T-1. Miami, FL
- T-1. Hialeah, FL
- T-1. Brownsville, TX
- Lowest
- 165. Pittsburgh, PA
- 166. Akron, OH
- 167. Portland, ME
- 168. Billings, MT
- 169. Lewiston, ME
- Highest
- T-1. Charleston, SC
- T-1. Burlington, VT
- 3. Irvine, CA
- 4. Chattanooga, TN
- 5. Cincinnati, OH
- Lowest
- 178. Wilmington, DE
- 179. Charleston, WV
- 180. Lewiston, ME
- 181. Portland, ME
- 182. South Burlington, VT
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 specifically encourage Hispanic entrepreneurs? If so, what types of programs or incentives?
- What tips do you have for Hispanic entrepreneurs interested in starting their own business?
- In evaluating the best cities for Hispanic entrepreneurs, what are the top 5 indicators?
- How do you explain the rapid growth of Latino entrepreneurs and are they, in your opinion, the key to a stronger economy?
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 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 (2017 vs. 2012): 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: 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 2021 - Number of Hispanic Employees in 2020) / Number of Hispanic Employees in 2020. - Share of Hispanic Residents: Full Weight (~3.20 Points)
- Hispanic Population Growth: 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, Ewing Marion Kauffman Foundation, Federal Deposit Insurance Corporation, Tax Foundation, LoopNet, EC Hispanic Media, Thumbtack and WalletHub research.
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