We surveyed more than 2,000 Latino-owned businesses and found that by 2012, there were 3.3 million LOBs — 90 percent of which were family owned. The study also revealed that the 3.3 million LOBs had an average of 8.6 employees per firm and an average of $155,806 in sales per firm annually, employing 2.3 million workers and generating a total of $473 billion in sales.
Perhaps the most important insight revealed by the study was the "opportunity gap," which refers to the current gap between the average yearly sales generated by LOBs and not Latino owned business (NLOBs). The potential impact on the U.S. economy if LOBs generated the same level of sales as NLOBs was calculated over the period of 2002–2012. A pattern was found to exist over these years.
For example, in 2012 alone, if all LOBs averaged the same yearly sales per firm as all NLOBs, $1.38 trillion would have been added to the U.S. economy. The results were astonishing, as they represent an incredible opportunity for growth and economic development. This serves as undeniable evidence that investing and creating new opportunities for Latino entrepreneurs is key for a thriving economy.
— By Jerry Porras, professor emeritus, Stanford University and chairman of LBAN; and Remy Arteaga, executive director of LBAN
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