HISPANIC HERITAGE MONTH (9/15 – 10/15) IS A HAPPENING

 

Executive Summary

  • In 1990 there were about 22.5 M Hispanics in the US (9.9%). Today, there are 54 M± Hispanics (or about 1 in every 6 Americans with a growth rate of over 140%).

  • B/T 2012 & 2013 2.3 M people were added to the US’s population. 1.1 M (48%) of them were Hispanic.

  • The projected Hispanic population of the United States in 2060 will be 128.8 M; the Hispanic pop will then constitute 31% of the nation’s pop.

  • ONLY Brazil (205.4 M estm in 2012) & Mexico (with 114.9 M) will have more Hispanics than the US.

  • CA (14.8 M) has the largest Hispanic population in the US (NM has the greatest %, 47.3%, of Hispanic residents).

  • 38.3 M (13% of total pop) who are 5 yrs and older spoke Spanish at home in 2012. (This is an increase of 121% since 1990 [17.3 M].)

  • MI’s Hispanic pop was 4.4% of is pop in 2012.

  • The median income of Hispanic households is $41,958 in 2013, 7.6% over 2012 (Census Bureau).

  • In the last published Biz Owners Survey of 2007, Hispanic owned bizes were 8.6% of ALL US small bizes with 3.1% of ALL small biz sales/receipts. (In 2007 about 15% of the US pop was Hispanic).

  • In 2007 there were 2.3 M Hispanic-owned biz’s (with an increase of 43.6% since 2002). The 2012 Survey of Biz Owners results will NOT be available till 2015, so we must labor with 2007’s data for a bit longer.

  • $350.7 B sales were earned by Hispanic-owned biz’s in 2007 (an increase of 58% from ‘02).

  • 23.7% of the bizes in NM in 2007 were Hispanic-owned followed by FL (22.4%) & TX (20.7%).

  • As of 2007 MI’s Hispanic pop was estimated to be 4.0% of MI’s pop with 1.3% of all small bizes being Hispanically owned.

Nat’l Hispanic Heritage Wk was founded in 1960; it was expanded to a full month in 1971. Sept 15 was selected b/c it is the b-day of independence for Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. In 1968 the Hispanic pop was less than 5% of the US total pop. In 2013, it is/was 17%+ of the US pop. We already see its influence in grade schools as 1 in 4 K-8 kids is of Hispanic origin. By 2060 the Census Bureau estimates that almost 1 in 3 (31%) Americans will be of Hispanic origin. Below we shall look at Americas’ Hispanism through the lens of entrepreneurism. (Best Cities/Worst Cities, come from WalletHub).

T-1: Best Cities for Hispanic Entrepreneurs

Rank

City

Hisp pop of State

% of Hisp pop of State

1

Pembroke Pines, FL

4.224 M

22.5%

2

Corpus Christi, TX

9.461 M

37.6%

3

Laredo, TX

9.461 M

37.6%

4

Gilbert, AZ

1.895 M

29.6%

5

Rancho Cucamonga, CA

14.014 M

37.6%

6

Jacksonville, FL

4.224 M

22.5%

7

El Paso, TX

9.461 M

37.6%

8

St. Petersburg, FL

4.224 M

22.5%

9

Baton Rouge, LA

0.193 M

4.2%

10

Chandler, AZ

1.895 M

29.6%

As we view the TOP 10 “biz startups”, (T-1) there is NOT much news except for Baton Rouge. With AZ, CA, FL & TX being well populated with Hispanics (both as to the total # of AND the % of Hispanics residing in each state), 9 of the 10Best Cities for Hispanic Entrepreneurs” need NO further discussion. Baton Rouge however, does NOT fit the automatic Hispanic profile. It is the 2nd largest city in LA, a state that ONLY has a 4.2% Hispanic population. LA is well known for its strong French settlement rather than being any type of Hispanic haven. Baton Rouge was established as a French military post in 1719. Today, it is the capital of LA and flourishes with many institutions of higher learning, strong bizes and a growing, very successful industrial sector. Baton Rouge is blessed with 27% to 28% of its Hispanics have college sheepskins while about 20% of Hispanics in the US have degrees.

In 2005 Hurricane Katrina scrambled many New Orleans residents as they sought other living and working locations. Baton Rouge provided a wonderful opportunity for those people, especially for immigrants & undocumented workers. Baton Rouge has inexpensive housing (by comparison to most of the other southern cities) and plenty of available jobs (See Penny Brown, 2007 at hispanictrending.net). Baton Rouge is truly a Hispanic anomaly with the MS River & Gulf of Mexico as geographical partners. It is not San Antonio, not Santa Fe and not St. Petersburg. Baton Rouge presents a “new world” opportunity for a French-Hispanic alliance.

WalletHub also lists the 10 Worst Cities for Hispanic entrepreneurs in the US. 6 of these cities are in states with a Hispanic population of less than 10% (Cleveland, Detroit, Milwaukee, Minneapolis, Philly & Winston-Salem). Providence, RI and Worcester, MA have Hispanic populations b/t 10.5% & 12%. The other 2 Worst Cities (Jersey City & Newark) belong to NJ with a 17.7% Hispanic population or just a bit more than the avg % of the US’s Hispanic pop. It is surely the case that NYC with such a strong contingency of 4.3M Hispanics and such an incredibly strong biz climate must be an impediment to any biz success in NJ (including Hispanic bizes). Additionally, NJ has the highest rate of immigrant-born engineering and technology businesses of any state. Most of them however, have been founded by Indian immigrants (New Jersey Policy Perspective, Jan 2014) and not by Hispanics.

As for MI and Metro Detroit, of the TOP 15 most populated metro areas (at least 3.28M) Metro Detroit (as #14 on that list) has the fewest Hispanics of (168M, 3.9%). As far as the largest 25 Hispanic populations in Metro Areas, 10 are in CA, 5 in TX, 3 in FL and 1 each in AZ, D of C, CO, CA, IL, PHILLY, NM, & NYC. (The domination of CA, TX & FL is obvious) In short, neither MI nor Metro Detroit has developed a large Hispanic population center.

EXPENDITURE PATTERNS

According to 2013’s Consumer Expenditure Survey (CEX), Hispanics earn 28% less than Non-Hispanics and spend 20% less than Non-Hispanics. Hispanics spend 3% more on FOOD but 13.6% less on HOUSING than do Non-Hispanics. They also spend 24% more on APPAREL, FOOTWEAR and their various SERVICES and 14% more on cell phone services. (We find it very interesting that male Hispanics outspend female Hispanics by almost 3 to 1 and therefore, make THE fashion statement). Based on these data, it is w/o question that Hispanics ARE America’s youthful trend leaders. Having said that, Hispanics spend a smaller % of their $$$$ on ALCOHOL, TOBACCO PRODUCTS and PERSONAL CARE ITEMS than Non-Hispanics do. They also spend 50% less on HEALTH CARE, 60% less on EDUCATION & 37% less on ENTERTAINMENT. Hispanics spend 33% less on PERSONAL INSURANCE & PENSIONS and contribute 55% less cash to CHARITIES. Finally, Hispanics spend 17% less on TRANSPORTATION in general than do Non-Hispanics; and they spend 37% less vs Non-Hispanics specifically on new cars & trucks. (This seems to us to be an outstanding growth opportunity for auto sellers especially for Hispanic dealers, Hispanic partnered dealers and/or auto Dealers in Hispanic communities). Viva Automóviles! Viva Automóviles!! Viva Automóviles!!!

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About bernacmd

For over 24 years, University of Detroit Mercy Marketing Professor Michael Bernacchi, Ph.D., J.D, has produced "uNDER tHE mIKE-rOSCOPE", a newsletter discussing current "marketing and advertising¹s bends, trends & ends." A well-know fixture in Detroit and national media, UDM's marketing guru has made several appearances on CNN's "Talk Back Live," the Voice of America worldwide radio network (VOA), ABC, CBS, NBC, MSNBC and on the pages of Sports Illustrated, Time, TV Guide, the New York Times, USA Today, the Wall Street Journal and the Washington Post, to name a few. At University of Detroit Mercy, he has taught courses in Marketing Management, Consumer Behavior, Marketing Communications, Research and Corporate Social Responsibility and Sports and Entertainment Marketing. Michael Bernacchi can be reached at 313-993-1116 or bernacmd@udmercy.edu. Please appropriately attribute the following for their work on uNDER tHE mIKE-rOSCOPE: Yen Ju Lee Robert Rouse Vidhyasagar Natarajan Eric Baumgardner & Ian Young
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