Latino-owned business revenues trailed non-latino firms, but gap narrowed in 2021-22, according to Biz2Credit’s Annual Study

NEW YORK, NY (October 6, 2022) — Revenues of Latino-owned businesses grew but still lagged those of non-Latino-owned firms in 2021-22, according to Biz2Credit’s Annual Latino-Owned Business study. However, although a revenue gap still exists, Latino-owned businesses gained ground on non-Latino-owned businesses, whose revenues fell during the same time period.

The study examined annual revenue, earnings, operating expenses, credit scores, and approved loan amounts. The report looked at financing applications from small businesses with less than $10 million in annual revenues — from start-ups to established companies — across the country from July 31, 2021, to June 30, 2022.

Biz2Credit Latino-Owned Business Study Key findings

  • Average annual revenue for Latino-owned companies ($538,588) was lower than those of non-Latino-owned firms ($583,502) in 2021-22.
  • Revenue growth for Latino-owned companies was up by 4%, while for non-Latino-owned companies it shrank by 5%, narrowing the gap in average revenue to just over $45,000.
  • Average operating expenses for Latino business owners was $415,101, compared to $431,680 for non-Latino business owners in 2021-2022.
  • Average earnings (Annual Revenue – Operating Expenses) across all businesses decreased by 10.5%. Latino-owned companies ($123,487) had lower profits than non-Latino-owned firms ($151,821) in 2021-22.
  • Credit Scores: Based on submitted applications, the average credit score for Latino business owners decreased from 638 in 2020-21 to 634 in 2021-22, while credit scores for non-Latino business owners dropped from 645 to 640.
  • The average financing amount for Latino-owned businesses ($57,470) was $24,529 less than that of non-Latino-owned firms ($81,999) in 2021-22 based on requested and approved financing amounts.
  • The state where the most financing applications from Latino-owned businesses originated was Florida (23.3%), followed by California (18.2%), Texas (15.4%), New York (7.3%), and New Jersey (4.5%), in 2021-22, according to submitted applications.
  • The largest category of businesses was Services (except Public Administration), which represented 18.6% of the Latino-owned companies in the Biz2Credit study. The industries that followed were Construction (16.8%), Transportation and Warehousing (14.8%), Retail Trade (10.7%), Accommodation and Food Services (8.6%), Professional, Scientific, and Technical Services (5.3%), Healthcare and Social Assistance (4.0%), Real Estate and Rental Leasing (3.5%), Wholesale Trade (3.1%), and Arts/ Entertainment (3.0%).
  • The average age of business for Latino-owned businesses is lower at 61.9 months (a little more than five years) than for non-Latino businesses at 66.8 months in 2021-22.
Latino-Owned Businesses 2021-22 Non-Latino-Owned 2021-22
Avg. Annual Revenue $538,588 Avg. Annual Revenue $583,502
Avg. Credit Score 634 Avg. Credit Score 640
Avg. Operating Expenses $415,101 Avg. Operating Expenses $431,680
Avg. Age of Business 61.9 months Avg. Age of Business 66.8 months
Avg. Earnings $123,487 Avg. Earnings $151,821

The report found that although revenues of Latino trailed non-Latinos overall, there was positive growth while revenues of non-Latino-owned firms dipped.

Year-to-Year % Change Latino Non-Latino
Avg. Annual Revenue 4% -5%
Avg. Credit Score -1% -1%
Avg. Operating Expenses 2% -3%
Avg. Age of Business -14% -11%
Avg. Earnings 11% -11%

The proportion of Latino-owned businesses applying for financing in 2021-22 rose by 9.9%. These firms continued to face adverse circumstances due to the lingering effects of the COVID-19 and disruptions to the U.S. economy since the pandemic hit in 2020. However, Latino-owned businesses experienced signs of growth in 2021-22, while non-Latino-owned firms generally saw a decline in average revenues, a sign of optimism for Latino business owners’ future success. Average revenue and earnings of Latino-owned firms increased over the last year, as did average operating expenses. Credit scores of Latino business owners declined slightly in 2021-22 and continue to lag their non-Latino counterparts.

“Our primary data shows the relative success of Latino business owners compared to others in the last year,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts in small business finance. “Latino business owners have made some significant gains compared to a year ago. One reason is that business owners of all ethnicities struggled during the pandemic, and many loan applications came from non-Latino business owners in urban areas that were hit hard by both the pandemic and government-mandated restrictions on their operations.”

Biz2Credit’s findings are consistent with the Stanford Latino Entrepreneurship Initiative’s State of Latino Entrepreneurship 2021 Report, which also found that Latino-owned businesses are significantly less likely than non-Latino, white-owned companies to have loan applications approved by national banks — despite reporting strong metrics on many key lending criteria. Further, the Stanford report said that Latino business owners are no more likely to be high credit risk than their non-Latino white counterparts and that among the most credit vulnerable business owners (undocumented and microbusiness owners), default rates are no higher than those of non-Latinos. The Biz2Credit study supports the finding that creditworthiness is not significantly different between Latino and non-Latino business owners.

“The results of this study are not surprising. My district is 70% Latino, and in the last two years, Latino small business owners have driven Miami’s unprecedented growth,” said Congresswoman Maria Elvira Salazar (FL-27). ”I understand my community, and we are tireless in the pursuit of building a legacy for our families.”

“Work ethic and gratitude are bastions of our culture. Consider this as evidence that the American Dream can be inherited by anyone, regardless of race or origin, if they are resolute to achieve it,” Salazar added. “One of my missions in Congress, as a member of the Small Business Committee, is to uphold the policies that support these entrepreneurs and to reduce bureaucratic obstacles that limit their potential.”

Key Statistics of Latino-Owned Businesses

The Latino population, which includes people of any race, increased by 767,907 in 2021,1.2% growth (62.57 million in 2020). Since 2010, the Hispanic/Latino population grew 23%, while the non-Hispanic/Latino population has only increased by 4.3%.

Twelve states — Arizona, California, Colorado, Florida, Georgia, Illinois, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, and Texas — had a population of 1 million or more Latino residents, according to the Census Bureau.

There are an estimated 4.7 million Latino-owned companies in the U.S., making them the fastest-growing segment of U.S. small businesses, up 35% in the last 10 years, the SBA reports. The Stanford Latino Entrepreneurship Initiative’s report found that during pre-pandemic times, Latino-owned businesses generated nearly $500 billion in annual revenue and employed 3.4 million people.

The Stanford study also found that Latina-owned companies were more negatively impacted by the pandemic than firms owned by men and that twice as many women-led companies experienced closure, compared to male-led businesses (30% vs. 16%). Layoffs were also higher for Latina-led companies (17% vs. 12%). Only 20% of Latina-owned businesses reported that the majority of their employees could work remotely, compared to 34% of Latino-led firms and 48% of white-male-led firms.

How a Latino-Owned Home Health Business Found Success After the Pandemic

Sylvia Montez is the third owner of Apex Home Health, a home care business, located in San Antonio, TX. When she first entered the space, she saw that most of the agencies around her were run by business owners from different backgrounds than hers. She describes the struggle that many business owners like her continue to face.

“As a Latina, I found out that many doors wouldn’t open, and I’ve missed out on many opportunities,” said Montez. “Even after the pandemic, I was able to receive financial assistance that brought my company to the next level and opened a lot of doors. It helped with marketing, not only door-to-door, but also with accessing web-based technology to grow my business.”

About the Biz2Credit Latino Small Business Credit Study
Biz2Credit, a leading online funding provider to small businesses, analyzed the financial performance of over 154,000 companies, including more than 14,000 Latino-owned firms that submitted funding requests through the company’s online platform. All companies included in the survey have less than $10 million in annual revenues. The report covered small businesses across the country, from start-ups to established firms from July 31, 2021, to June 30, 2022.

Note on Methodology: The methodology used to measure a valid financing application has been updated for the 2022 Biz2Credit Latino-Owned Business Study. The 2022 study uses new statistical sampling methods that were not previously available in earlier years. As a result, figures reported in this year’s study do not normalize with prior years’ reported figures. The improved sampling and modeling techniques will be used in future versions of the study. Details are found in the full report, available at

About Biz2Credit

Founded in 2007, Biz2Credit has arranged more than $8 billion in small business financing. The company is expanding its industry leading Biz2X technology in custom digital platform solutions for banks and other financial institutions, investors, and service providers. Visit or Twitter @Biz2CreditFacebook, and LinkedIn.


John Mooney
(908) 720-6057

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