The Best States for Hispanic Business Owners

By Amanda Postma - Nov. 30, 2020

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Of the 33 million businesses in the U.S., Hispanic-owned businesses make up 14%. Just to put this into perspective, that means roughly 1 in 7 businesses are Hispanic-owned.

Between 2012 and 2018, the number of Hispanic-owned businesses grew by over 40%. So as you can see, Hispanic-owned businesses are doing very well.

While Hispanic-owned businesses are already doing well on their own in the U.S., we wanted to give those businesses the best opportunity.

That’s why we found the best states for Hispanic business owners.

Top Ten States for Hispanic Business Owners

  1. Texas
  2. New Mexico
  3. Nevada
  4. Arizona
  5. California
  6. Connecticut
  7. Louisiana
  8. Michigan
  9. Virginia
  10. Kansas

The determining factors included the number of Hispanic-owned businesses as well as how many employees are typically employed there.

These factors led us straight to these 10 states, which are by far the best states for Hispanic-owned businesses.

So you might want to consider moving to any of these states if you’re considering starting a business. Keep reading to find out which states aren’t so great for Hispanic-owned businesses.

HOW WE DETERMINED THE MOST SUPPORTIVE STATES FOR Hispanic Businesses

We looked at three factors to determine the best states for hispanic business owners:

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  • The percent of Hispanic-owned businesses
  • How the number of businesses compares to the state’s Hispanic population
  • The average amount of people employed by Hispanic-owned businesses

The first factor we examined was the percent of Hispanic-owned businesses for all businesses in the state, using data from the Census’ Annual Business Survey. What better way to determine which states have the right environment and support for Hispanic businesses to flourish than the percent of Hispanic businesses currently in operation?

However, not all states have the same amount of Hispanic residents. So we then pulled in the Hispanic population to compare the percent of Hispanic residents to the percent of Hispanic-owned businesses. The closer those numbers, the higher the rank.

After that, we pulled in the number of workers employed by Hispanic businesses to gauge the size and the success of those businesses.

While many small businesses provide an excellent life for the owner without needing a high staff count, it is a good top-level way to see where businesses are thriving.

1. Texas

texas class=

Percent of Hispanic-Owned Businesses: 11.7%
No. of Employees: 617,270
Average Employees: 12

The big state of Texas is No. 1 for its support of Hispanic-owned businesses. In fact, the state supports a whopping 11.7% Hispanic-owned businesses, which happens to be the third-most in the U.S. On top of that, those businesses employ a combined total of 617,270 workers across the state. That’s pretty impressive.

2. New Mexico

Percent of Hispanic-Owned Businesses: 15.3%
No. of Employees: 55,621
Average Employees: 11

New Mexico is the second-most supportive state for Hispanic-owned businesses. While it may come in second, the state has the highest percentage of Hispanic-owned businesses at 15.3%. This is definitely the place you want to be if you want your business to succeed.

3. Nevada

nevada class=

Percent of Hispanic-Owned Businesses: 6.2%
No. of Employees: 34,070
Average Employees: 10

With the sixth-highest percentage of Hispanic-owned businesses at 6.2%, it’s no surprise that Nevada comes in third on our list. Those businesses provide 34,070 jobs throughout the state with the average business employing 10 workers.

4. Arizona

arizona class=

Percent of Hispanic-Owned Businesses: 7.0%
No. of Employees: 76,854
Average Employees: 10

Arizona is the fourth-most supportive state when it comes to Hispanic-owned businesses. With 7% of the state’s entire business community being Hispanic-owned, it’s definitely a great place to be for Hispanic business owners.

5. California

california class=

Percent of Hispanic-Owned Businesses: 9.3%
No. of Employees: 673,530
Average Employees: 9

The fifth-most supportive state of Hispanic-owned businesses is California. The fact that 9.3% of all the businesses in California are owned by Hispanic business owners is a major contributing factor. But so is the fact that those businesses contribute to 673,530 jobs across the state. That’s a whole lot of employees.

6. Connecticut

connecticut class=

Percent of Hispanic-Owned Businesses: 2.8%
No. of Employees: 19,262
Average Employees: 10

Connecticut comes in at No. 6 on our list of supportive states. Almost 3% of the businesses there are owned by Hispanic business owners. If that doesn’t convince you, then maybe the fact that the average Hispanic-owned business in Connecticut employs 10 workers will.

7. Louisiana

louisiana class=

Percent of Hispanic-Owned Businesses: 1.7%
No. of Employees: 16,621
Average Employees: 12

At No. 7, Louisiana is supportive of Hispanic-owned businesses. You can tell just by the average number of employees that are employed by those businesses. The average Hispanic-owned business here employs 12 workers for a total of 16,621 employees across the state. It’s clear that it’s easy to be successful in Louisiana.

8. Michigan

michigan class=

Percent of Hispanic-Owned Businesses: 1.3%
No. of Employees: 32,593
Average Employees: 14

Michigan is the third-most supportive state in the U.S. when it comes to Hispanic-owned businesses, but it may not be for the reason you think it is. While only 1.3% of the businesses in Michigan are owned by Hispanic business owners, the average Hispanic-owned business there employs 14 workers, which is the third-most number of average employees in the U.S.

9. Virginia

virginia class=

Percent of Hispanic-Owned Businesses: 3.4%
No. of Employees: 47,060
Average Employees: 9

A whopping 3.4% of all the businesses in Virginia are Hispanic-owned businesses, which is why the state is ninth-most supportive on this list. Those businesses provide 47,060 employees with jobs so no wonder the state is so supportive.

10. Kansas

kansas class=

Percent of Hispanic-Owned Businesses: 2.5%
No. of Employees: 14,971
Average Employees: 10

And lastly, we have Kansas as the 10th-most supportive of Hispanic-owned businesses. The state has earned this ranking from the 2.5% of the businesses there being owned by Hispanic business owners. On top of that, those businesses provide 14,971 jobs. Talk about being successful.

Showing Support

When you’re starting a business, you want to find a place that will support growth and allow your business to thrive. Based on the number of Hispanic-owned businesses and the number of employees those businesses employ, it’s easy to see where you’ll be supported.

Now that you’ve found out where the most supportive states are for Hispanic-owned businesses, you may be wondering which are the least supportive. Lucky for you, we have the answer. Check out the table below.

Rank State Percent Of Hispanic-Owned Businesses No. Of Employees Average Employees
1 Texas 11.73% 617,270 12
2 New Mexico 15.31% 55,621 11
3 Nevada 6.25% 34,070 10
4 Arizona 6.97% 76,854 10
5 California 9.34% 673,530 9
6 Connecticut 2.84% 19,262 10
7 Louisiana 1.69% 16,621 12
8 Michigan 1.30% 32,593 14
9 Virginia 3.43% 47,060 9
10 Kansas 2.51% 14,971 10
11 New York 4.68% 183,577 8
12 Alabama 1.29% 12,997 14
13 South Carolina 1.58% 15,662 12
14 Indiana 1.75% 20,639 11
15 Tennessee 1.60% 18,525 12
16 Oklahoma 2.55% 17,231 9
17 Florida 14.63% 441,683 7
18 Maryland 3.47% 30,532 8
19 Delaware 2.01% 3,887 9
20 Kentucky 0.93% 7,702 12
21 Georgia 2.95% 43,188 8
22 Missouri 1.21% 14,838 11
23 Colorado 4.14% 41,748 7
24 North Carolina 2.72% 41,892 9
25 West Virginia 0.63% 2,891 17
26 Washington 3.75% 40,727 7
27 Oregon 3.29% 22,981 7
28 South Dakota 0.29% 1,209 18
29 Illinois 5.30% 85,634 6
30 Ohio 0.79% 16,649 11
31 Massachusetts 1.81% 22,693 9
32 New Jersey 5.67% 65,482 6
33 Iowa 1.16% 6,756 9
34 Utah 2.80% 12,320 7
35 Mississippi 0.78% 3,443 10
36 Arkansas 0.98% 4,377 9
37 Alaska 2.56% 2,884 7
38 Idaho 2.12% 5,742 7
39 Hawaii 0.92% 2,160 9
40 Nebraska 1.80% 5,636 7
41 Pennsylvania 1.02% 19,684 8
42 Wisconsin 0.82% 7,726 9
43 Rhode Island 2.72% 3,172 5
44 Wyoming 2.01% 2,255 6
45 Minnesota 0.97% 8,596 7
46 Montana 0.75% 1,861 8
47 New Hampshire 0.56% 1,334 8
48 North Dakota 0.20% 261 7
49 Maine 0.21% 429 6
50 Vermont 0.20% 203 6

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Amanda Postma

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Amanda Postma

Amanda Postma is a writer for the Zippia Career Advice blog with a focus on creating entertaining content to help you through your job search. She received her BA from the University Of Missouri-Columbia.

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