WASHINGTON (By Sharon McLoone,
Washington Post) June 28, 2008 — The
rapidly growing
Hispanic population will have a
profound effect on the landscape of the
small business community, said marketing
expert
Chiqui Cartagena, who also
noted that Hispanic women now make up the
fastest growing segment of entrepreneurs
in the United States.
Hispanics
accounted for about 15 percent of the
total U.S. population in July 2007 with
a spending power of $850 billion.
Projections show that figure is likely
to exceed $1 trillion by 2010, according
to Cartagena, who is the author of
Hispanic
Boom! Everything You Need to Know to
Grow Your Business in the Hispanic
Market.
Cartagena spoke to an attentive audience
in the packed
National Press Club ballroom
Thursday morning where a half-day
conference,
Hispanic
Buying Power, was hosted by the
Greater
Washington Board of Trade.
She
said 53 percent of Hispanics owned homes
in 2006 and will make up 40 percent of
new home buyers over the next 20 years,
opening business and marketing
opportunities for banks, home furnishing
stores and other companies catering to
home ownership. But Hispanic buying
power is not limited to real estate.
According to data from
Geoscape that Cartagena cited,
Hispanics tend to spend more on
groceries, phone services, furniture,
gasoline, children's clothing and
footwear.
Her
data show that Mexicans make up 67
percent of Hispanics in the United
States, Central and South Americans make
up 14 percent, followed by Puerto Ricans
at 9 percent, Cubans with 4 percent and
"other" Hispanics at 6 percent.
Thirty-five percent of all Hispanics in
the United States are under the age of
18 and 50 percent are under 34.
While
Hispanic communities in the United
States traditionally have been located
in states such as California, New York
and Texas, there's been explosive growth
in areas like Raleigh and Greensboro,
N.C., and Atlanta, Ga. Virginia and
Delaware are also high-growth states.
Hispanic babies made up about a quarter
of all U.S. births in 2006, generating
Hispanic demand for baby and mom-centric
products and creating marketing
opportunities for businesses in those
areas.
Sixty-two percent of new business owners
in the United States are Hispanic women,
according to government data. The number
of Latina entrepreneurs is growing,
Cartagena said in an interview with the
Small Business Blog, because
entrepreneurship is part of the Latin
American tradition. "It's not seen as
risky," she said.
A lot
of these women have found success
through direct sales companies like
Avon, Mary Kay and Tupperware, she said.
"And those women are encouraging their
children to start their own business,"
whether it's a day care center or a food
stand.
"Right
beyond the baby boomers we always
hear is about our boom," said Cartagena,
who was born in Madrid, and is now the
managing director of Hispanic ventures
with publishing house
Meredith. "We are literally the
economic backbone of this country. If
you want your company to grow, you
better market to Hispanics or you're
missing the boat."
In the
Washington metropolitan area, Hispanics
make up just over 11 percent of the
population. African-Americans make up
about 25 percent and Asian-Americans
account for 8.5 percent.
"Businesses should note that in the D.C.
area over 40 percent of your potential
buyers are not white," Cartagena said.
In
2006, Hispanics of Mexican origin surged
ahead of Salvadoreans and now are the
largest group of Hispanics living in the
D.C. metro area, which boasts the
highest median household income - at
about $60,000 - in the Hispanic market.
