If the US economic output of Latinos were a country, it would rank as the fifth-largest economy globally, surpassing both India and the UK in gross domestic product (GDP). Despite making up just 19% of the US population, Latinos have contributed an impressive 41% to the growth in real US GDP.
Latino entrepreneurs are a significant force in US business, with Latino-owned startups representing 36% of all new businesses in 2023, according to Census Bureau data. By 2023, Latino entrepreneurs had launched five million businesses nationwide, collectively generating over $800 billion in annual revenue. This includes well-known companies such as Carvana, Mastec, Goya Foods, and Univision.
What the economic trend could mean for investors and advisors
For venture capital firms, private lenders, and traditional banks, this trend represents an unparalleled opportunity to deploy capital and generate returns for years to come. Financial institutions and advisory firms are taking note—and action—to capitalize on that opportunity by expanding their presence in cities with thriving Latino businesses, such as Miami, Dallas, and Houston.
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