Hispanic Resource Center
CUNA E-Scan: Hispanics represent big small business market
The number of Hispanic/Latino-owned small businesses in the U.S. is expected to increase 45% between 2005 and 2010—from 2.2 million to 3.2 million, according to CUNA’s 2006-2007 Environmental Scan.
These businesses will account for more than $465 billion in total revenues.
Citing data from the Pew Hispanic Center and the U.S. Census Bureau, the E-Scan reports that the nation’s largest ethnic group is expected to reach 47.7 million people by 2010 and 60 million by 2020. Births to Hispanic immigrants (as opposed to immigration) will become the primary driver of the population growth. Births will account for 36% of the growth by 2020, while immigration will account for only 34% of the growth.
Credit unions need to stay abreast of local immigration trends, the E-Scan says, as pockets of highly concentrated Hispanic/Latino populations in large cities outside of “magnate” states like Texas, California, New York, and Florida will continue.
And credit
unions will need to devise an Internet strategy to reach the Hispanic market. There were nearly 16
million Hispanics using the Internet in 2005, a 14% increase in two years. That growth rate is
more than twice the growth rate for the general population. In fact, 54% of online Hispanics
look for financial information online (similar to 56% of the general population) and 70%
of this group say the Internet is their best source of price-comparison shopping.
Finally, the E-Scan suggests marketers may soon need to think about targeting second generation Hispanics. According to a Filene Research Institute study, role reversal is a fairly common phenomenon among first- and second-generation immigrants. That means second generation Hispanics will be heavily relied upon to make key family decisions.
Copies of CUNA’s 2006-2007 Environmental Scan are available HERE For Purchase
Back to Hispanic Resource Center links
