Small businesses continue to increase at a rapid pace. While large employers, and now the government, have cut jobs in recent years entrepreneurship is on the rise. Among this new age of business owners, the Hispanic community is increasingly taking steps to control their destinies and open their own businesses.
According to the U.S. Commerce Department’s Minority Business Development Agency, between 2002 and 2007 Hispanic owned firms increased by 44% to 2.3 million companies throughout the US. Simultaneously employment at these firms increased by 26%, employing over 1.9 million people. During the same time period non Hispanic businesses grew by only 18%.
Hispanic business owners represent a largely growing demographic throughout the United States. Companies wanting to work with or sell to the Hispanic community should target Hispanic owned businesses as a foot in the door. These companies understand how to successfully maneuver through cultural differences that make their community so unique. Businesses attempting to enter the Hispanic market without inside knowledge may face challenges crossing cultural barriers.
Taking the time to call on Hispanic owned businesses is definitely worth it. They are often ignored when it comes to allocation of marketing dollars but reports show that the Hispanic community has a collective buying power of $1 trillion dollars. According to Neilson this is expected to grow to $1.5 trillion by 2017. The report also shows that Latino households are expected to have a large increase in families earning over $50,000.
The Hispanic population is becoming wealthier, younger than the rest of the population, and a large minority group. As a result they will represent much of the upcoming work force, have buying power, and look to Hispanic owned companies to fulfil their consumer needs. This creates the perfect opportunity for established businesses to sell to and partner with Hispanic owned enterprises in an effort to mutually serve the needs of a growing community. New businesses may not have the resources, products or history to fulfill these needs but they understand the community and can interact in a positive way that is harder for large corporations trying to fit in. From a sales perspective it is easier, and potentially more profitable, to sell to Hispanic owned businesses as a vendor than going direct to the consumer.
At salesleads.tv we have specific lists for Hispanic owned companies that you can use to enter the market. Research is the first step followed by understanding the market. Surveys and reports show that Hispanic owned businesses tend to employ less people than other businesses and, once opened, grow at a slower rate. This is thought to be due to a need for advanced leadership skills and further training – making these companies ideal for business service providers to work with. Additional tools may help to foster growth. Many Hispanic owners also prefer to keep the company within the family and small enough to easily manage. Research the industry and understand the growth opportunities prior to calling.
These businesses are growing through the entrepreneurial spirit of the Hispanic community, assistance from the government and lending institutions, and minority buying programs within larger corporations. Enhance your business by reaching out to the minority business community and see how you can be part of this growing market segment.
Find out about minority lead lists here at SalesLeads.tv by calling 800-590-5323 today!