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Best Cities for Hispanic Entrepreneurs

Photo of Maxine Johnson Maxine JohnsonJanuary 16, 2024
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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

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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.

Median Annual Income of Hispanics (Adjusted for Cost of Living)

Highest

  • T-1. Gilbert, AZ
  • T-1. Chandler, AZ
  • T-1. Chesapeake, VA
  • T-1. Scottsdale, AZ
  • T-1. Shreveport, LA
Median Annual Income of Hispanics (Adjusted for Cost of Living)

Lowest

  • 178. Boston, MA
  • 179. Buffalo, NY
  • 180. Rochester, NY
  • 181. New York, NY
  • 182. Bismarck, ND
Hispanic Entrepreneurship Rate

Highest

  • T-1. Miami, FL
  • T-1. Hialeah, FL
  • T-1. Pembroke Pines, FL
  • T-1. Fort Lauderdale, FL
  • T-1. St. Louis, MO
Hispanic Entrepreneurship Rate

Lowest

  • 165. Huntsville, AL
  • 166. New Haven, CT
  • 167. Fayetteville, NC
  • 168. Lewiston, ME
  • 169. Billings, MT
% of Hispanic Residents

Highest

  • 1. Hialeah, FL
  • 2. Laredo, TX
  • 3. Brownsville, TX
  • 4. El Paso, TX
  • 5. Santa Ana, CA
% of Hispanic Residents

Lowest

  • 178. Portland, ME
  • 179. Lewiston, ME
  • 180. Huntington, WV
  • 181. Jackson, MS
  • 182. Charleston, WV
Hispanic Income Growth

Highest

  • T-1. Burlington, VT
  • T-1. Shreveport, LA
  • 3. Missoula, MT
  • 4. St. Louis, MO
  • 5. Jackson, MS
Hispanic Income Growth

Lowest

  • 178. Casper, WY
  • 179. Pearl City, HI
  • T-180. Juneau, AK
  • T-180. Charleston, WV
  • T-180. Bismarck, ND
Hispanic Unemployment Rate

Lowest

  • T-1. Mobile, AL
  • T-1. Huntsville, AL
  • T-1. Portland, ME
  • T-1. Charleston, SC
  • T-1. Casper, WY
Hispanic Unemployment Rate

Highest

  • T-177. Detroit, MI
  • T-177. Cleveland, OH
  • T-177. Toledo, OH
  • T-177. Rochester, NY
  • T-177. Akron, OH
% of Hispanics with at Least a Bachelor's Degree

Highest

  • 1. South Burlington, VT
  • 2. Burlington, VT
  • 3. Washington, DC
  • 4. Pittsburgh, PA
  • 5. Tallahassee, FL
% of Hispanics with at Least a Bachelor's Degree

Lowest

  • 178. Garland, TX
  • 179. Bridgeport, CT
  • 180. San Bernardino, CA
  • 181. Gulfport, MS
  • 182. Stockton, CA
Share of Hispanic-Owned Businesses

Highest

  • T-1. Laredo, TX
  • T-1. El Paso, TX
  • T-1. Miami, FL
  • T-1. Hialeah, FL
  • T-1. Brownsville, TX
Share of Hispanic-Owned Businesses

Lowest

  • 165. Pittsburgh, PA
  • 166. Akron, OH
  • 167. Portland, ME
  • 168. Billings, MT
  • 169. Lewiston, ME
Hispanic Population Growth

Highest

  • T-1. Charleston, SC
  • T-1. Burlington, VT
  • 3. Irvine, CA
  • 4. Chattanooga, TN
  • 5. Cincinnati, OH
Hispanic Population Growth

Lowest

  • 178. Wilmington, DE
  • 179. Charleston, WV
  • 180. Lewiston, ME
  • 181. Portland, ME
  • 182. South Burlington, VT

Show More

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:

  1. What are the biggest challenges faced by Hispanic entrepreneurs?
  2. Should government authorities create programs or other incentives to specifically encourage Hispanic entrepreneurs? If so, what types of programs or incentives?
  3. What tips do you have for Hispanic entrepreneurs interested in starting their own business?
  4. In evaluating the best cities for Hispanic entrepreneurs, what are the top 5 indicators?
  5. How do you explain the rapid growth of Latino entrepreneurs and are they, in your opinion, the key to a stronger economy?

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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