The study found that the average annual revenue for Latino-owned businesses was $68,540, trailing slightly behind the average annual revenue of $70,641 for non-Latino-owned businesses (though an improvement from the previous year). Average operating expenses were also significantly lower at $18,334, contrasted with $24,857 for non-Latino businesses. The average age of Latino businesses was younger at 22 months vs. 25 months for non-Latino businesses. Meanwhile, the average credit score for Latino-owned businesses applying for loans was 603, compared to 614 for all others.
“This year's study was interesting because we found that Latino businesses made gains in number of loan applications and certain industries saw higher growth, however, they still need to catch up to non-Latino businesses in many areas,” said Rohit Arora, chief executive officer, Biz2Credit. “It’s an exciting time because Latinos are one of the fastest growing populations in the U.S. with 43 percent growth since 2007. We believe that this population will soon be on par or surpass non-Latino businesses.”
The Top 5 states for Latino-owned small business loan applications were: Texas (16.4%), California and Florida tied at (15.7%), New York (9.1%) and – for the first time – Georgia (3.0%). All five states represented 60% of the loan requests made by Latinos in the past year.
The top industries that grew the most in the past year were: Services (30.5%), which grew 5%; followed by Transportation and Warehousing (8.8%), which grew 3%.
For more information on the study and to view the infographic, please click here.
About the Biz2Credit Latino Small Business Credit Study
Biz2Credit analyzed the financial performance of more than 1,000 Latino-owned businesses with less than 250 employees and less than $10 million in annual revenues from across the country that have been in operation for more than 1 year, as well as startups.
Founded in 2007, Biz2Credit has arranged more than $1.2 billion in small business financing and is widely recognized as the #1 online credit resource for startup loans, lines of credit, equipment loans, working capital and other funding options in the U.S. Using the latest technology, Biz2Credit matches borrowers to financial institutions based on each company's unique profile -- completed in less than four minutes -- in a safe, efficient, price-transparent environment. Visit www.biz2credit.com, follow on Twitter @Biz2Credit, and join on Facebook at www.facebook.com/biz2credit. See infographic here