The Entrepreneurial Spirit of Hispanic-Americans and Its Impact on the Economy
Created on September 20, 2012
Each year, from September 15 to October 15, the United States observes Hispanic Heritage Month. During this time we celebrate the rich histories, contributions, and cultures of those Americans with ancestry traced back to Latin America and Spain. From the trailblazers of politics and justice such as Romualdo Pacheco and Sonia Sotomayor to advances in science and medicine made by Luis Walter Alvarez and Antonia Novello, we take this time to reflect on the history and future. A major economic contribution of the Hispanic American population is their entrepreneurial spirit and the success of Hispanic-owned businesses.
Minority-owned firms have historically been a significant part of our nation’s economy. They have been a model for growth and development throughout the decades, even in the most financially difficult times. Hispanic-owned firms in particular have served as a cornerstone for economic development and U.S. prosperity. According to 2007 figures from the U.S. Census Bureau (the most recent data available), these firms generated $351 billion in economic output towards the U.S. economy, along with creating 1.9 million jobs. Their prospects for job growth are ever-increasing, with trend analysis showing that Hispanic-owned firms outpace the growth of non-minority-owned firms, in gross receipts, employment, and number of firms between 2002 and 2007.
Although experiencing high growth and successes, Hispanic-owned firms still find their true potential to be elusive. Potentially, their economic contributions could offer the United States:
Gross receipts that approach $1.4 trillion
Creation of 7.4 million jobs, or 4 times their actual employment
The Minority Business Development Agency, at the U.S. Department of Commerce, is dedicated to helping these firms realize greater growth through access to capital, contracts and markets. In doing so, more Americans will be employed, more communities will stabilize and prosper, and more American products will be exported to consumers around the world.
During the past three years, MBDA has helped Hispanic-owned firms obtain $3.5 billion in contracts and capital. This represents a 92 percent increase over the period between 2006 and 2008. Some examples of our success in the Hispanic business community include:
Andale Construction Inc., a company that specializes in underground utilities and horizontal directional drilling, was founded by Luis De La Cruz in Phoenix, Arizona in 2006. The company became an MBDA client in 2007. Over the years, the MBDA Business Center in Phoenix has assisted Andale with certifications and marketing. As a result, Andale secured two large contracts with the U.S. Department of Navy, one for $31.6 million and another for $39.9 million, creating 380 new jobs.
Mirador Enterprises headquartered in El Paso, Texas with project support offices in Las Cruces and Albuquerque, New Mexico.It was founded by Yolanda Diaz in 2002 and became a client of MBDA in 2008. Since that time, the MBDA Business Center in El Paso has assisted the company by providing greater exposure to local, state and federal buyers, along with assistance in certification, bidding, bonding and financing. As a result, in 2011, Mirador secured one contract for $20 million with the Texas National Guard, and another contract for $4 million with the U.S. Army Corps of Engineers. Mirador also secured $10 million in bonding, enabling the company to create multiple new jobs and retain 27 employees.
MBDA and its network of MBDA Business Centers are valuable assets for Hispanic-owned firms. By providing access to capital, contracts, market access, and strategic consulting services, Hispanic-owned firms can reach their true economic potential, creating jobs for all Americans and helping to support and grow the entire U.S. economy.
Contact a MBDA Business Centers to access the expertise and resources you need to grow your business.