The number of Latino-owned businesses in the United States grew by 31 percent between 1997 and 2002, more than three times the rate for all businesses. In California, Latino businesses grew 27 percent, more than twice as much as businesses overall, according to a report released Tuesday by the U.S. Census Bureau.
“It illustrates that the contribution they make to the economy is growing rapidly,” said Lee Wentela, chief of the bureau’s economic census branch.
The growth in Latino businesses nationally mirrors a similar increase in businesses owned by other minority groups. The number of businesses owned by Asian Americans grew 24 percent, and African American-owned business ownership rose 45 percent between 1997 and 2002, the census bureau found.
Business analysts said some of this growth results from workers deciding to become entrepreneurs after jobs dried up at larger firms during the economic downturn. Minority procurement laws also have helped contractors get a foothold in business.