Average annual revenue for Latino businesses increased by 23.1% in 2022 – 2023 over the previous 12-month period, according to the annual Biz2Credit Latino-Owned Business Study. This statistic is based on a study of 57,000 submitted applications on Biz2Credit’s online platform. Meanwhile, average operating expenses increased 23.6%, while earnings rose 21.1% for Latino-owned firms. While these results are encouraging, non-Latino firms saw revenues soar 54.4% and earnings skyrocket by 75.2%.
The Biz2Credit Latino-Owned Business Study examines financial indicators including annual revenue, operating expenses, age of business and credit scores of both Latino-owned and non-Latino-owned companies.
Key findings about Latino-owned businesses:
- Average annual revenue increased from $488,827 in 2021 – 2022 to $601,636 in 2022 – 2023, an increase of 23.1%.
- Average operating expenses jumped from $395,265 in 2021 – 2022 to $488,368 in 2022 – 2023, an increase of 23.6%.
- Average earnings (annual revenue minus operating expenses) rose from $93,562 in 2021 – 2022 to $113,268 in 2022 – 2023, a 21.1% increase.
- The average credit score for Latino-owned businesses increased from 632 in 2021 – 2022 to 641 in 2022 – 2023.
- The average age of business for Latino-owned business increased from 52 months in 2021 – 2022 to 54 months in 2022 – 2023.
- Construction accounted for the largest percentage of Latino-owned companies in this study (18.3%), followed by services, except public administration (16%), transportation and warehousing (12.8%), and retail trade (10.5%).
- Florida was the state from which the greatest number of small business loan applications originated, followed by California, Texas, New York and New Jersey.
- The overwhelming percentage of Latino-owned businesses (57%) were limited liability companies, while corporations accounted for 25% and sole proprietorships comprised 15%.
“Overall, it was a solid year for Latino-owned businesses, but they trained in comparison to the success of non-Latino firms in the past 12 months,” Rohit Arora, CEO of Biz2Credit, said. “Average revenues were up, but so were expenses, a reflection of inflation during the past year.”
Comparing Latino and Non-Latino Companies
- Average annual revenue for Latino-owned businesses increased from $488,827 in 2021 – 2022 to $601,636 in 2022 – 2023. However, non-Latino firm revenues soared to $667,204 in 2022 – 2023, up from $432,260 during the previous 12 months, an increase of 54.4%.
- Average operating expenses for Latino-owned businesses jumped from $395,265 in 2021 – 2022 to $488,368 in 2022 – 2023. Meanwhile, the expenses of non-Latino firms leapt from $341,316 in 2021 – 2022 to $507,840 in 2022 – 2023, an increase of 48.8%.
- Average earnings (annual revenue minus operating expenses) for Latino-owned businesses rose from $93,562 in 2021 – 2022 to $113,268 in 2022 – 2023. Meanwhile, earnings of non-Latino firms rose during the past 12 months from $ $90,944 in 2021 – 2022 to $159,365 in 2022-23, an increase of 75.2%.
- The average credit score for Latino-owned businesses was 641 in 2022 – 2023, while the average credit score for non-Latino businesses in 2022 – 2023 was six points higher at 648.
- The average age of business for Latino-owned business was 54 months in 2022 – 2023, while the average age of business for non-Latino firms in 2022 – 2023 was 63 months.
- Other services, except public administration, accounted for the largest percentage of non-Latino firms (15.2%), followed by retail trade (13.5%), construction (11.7%), transportation and warehousing (11%), and accommodation and food services (9%).
- California was the state from which the most applications were submitted by non-Latino firms, followed by Florida, Texas, Georgia and New York.
- The largest percentage of non-Latino firms (63%) were limited liability companies, while corporations accounted for 22%, and sole proprietorships comprised 13%.
“While Latino-owned businesses did very well during the past 12 months, their success still lags behind the fortunes of non-Latino firms,” Arora said. “The good news is that small businesses of all types fared better overall than anyone could have anticipated last year.”
“South Texas is home to many Latino-owned small businesses,” U.S. Congressman Henry Cuellar, Ph.D., said. “They are crucial drivers of our local, state, and national economies. I am eager to discuss how federal legislative action can enable Latino-owned small businesses to continue to thrive in our country.”
