Best States for Hispanic-Owned Small Businesses

There are over 5 million Hispanic-owned businesses in the United States. These businesses have $766.8 billion in total sales and employ nearly 3 million workers. Hispanic-owned businesses are a vital part of the American economy and continue to grow each year.

National Hispanic Heritage Month is observed from September 15th to October 15th. To celebrate, B2B Reviews analyzed small business data to find which states are best for Hispanic-owned businesses.

We compared all 50 states and the District of Columbia across six key metrics impactful to small Hispanic-owned businesses.

For an in-depth look into how we determined our rankings, take a look at our methodology.

Best States for Hispanic-Owned Small Businesses

Sort the table to by metric, state, or rank.

Top 10 Best States for Hispanic-Owned Small Businesses

Discover what standout features make these states rank in the top ten.

Photo by Christina @ wocintechchat.com on Unsplash

New Mexico is the best state for Hispanic-owned businesses in 2025. It has the highest percentage of Hispanic-owned businesses, at 34.22%. This means that 34.22% of all small businesses in New Mexico are Hispanic-owned. Also, of all Hispanic-owned businesses, 10.39% are employer firms, which is higher than the national average of 9%.

Additionally, 47.74% of New Mexico’s population is Hispanic, which is the highest in the nation and significantly higher than the national average (12.59%). Hispanic-owned businesses also account for 8.05% of New Mexico’s annual payroll, which is significantly higher than the national average of 1.22%.

Hispanic families living in New Mexico have a median household income of $55,583, which is 89.47% of the state’s median income and higher than the national average percentage of 86.74%.

Utah comes in second place. It has a higher-than-average percentage of Hispanic-owned businesses, at 8.89%. Additionally, Utah saw a 27.88% increase in Hispanic-owned businesses from 2023 to 2024, which is higher than the national average increase of 21.58%. The state has a higher-than-average percentage of Hispanic-owned employer businesses, at 10.62%.

Additionally, 15.07% of Utah’s population is Hispanic, which is higher than the national average of 12.59%. Finally, Hispanic-owned businesses account for 1.38% of Utah’s annual payroll, which is higher than the average (1.22%).

Florida takes third place. It has the second-highest percentage of Hispanic-owned businesses in the nation, at 32.94%. Also, 26.45% of Florida’s population is Hispanic, which is the sixth highest in the nation.

Hispanic businesses accounted for 4.70% of Florida’s annual payroll, which is the second-highest percentage in the nation and higher than the national average percent (1.22%). Finally, the median income for Hispanic families is 92.81% of Florida’s median income, the eighth highest in the nation.

Coming in fourth place is Oregon. The state has the third-highest percentage of Hispanic employer businesses, at 15.72%, which is higher than the national average of 9.00%. Oregon is also within the top 15 states for Hispanic population, with 13.89% its population being Hispanic. This percentage is higher than the national average of 12.59%.

Hispanic-owned businesses also account for 1.47% of Oregon’s annual payroll, which is the ninth highest in the nation. The median household income for Hispanic families is 88.10% of the state’s median income, which is higher than the national average (86.74%).

Illinois comes in fifth, with 11.01% of all small businesses being Hispanic-owned, which is higher than the average of 8.67%. Additionally, Illinois has a higher-than-average percentage of Hispanic employer firms, at 11.24%. This is higher than the average of 9%. Illinois also has the tenth-largest percentage of Hispanic people, with 18.24% of its population being Hispanic.

Hispanic-owned businesses account for 1.29% of Illinois’s annual payroll, placing it in the top 15 for this metric. The percentage is also higher than the national average of 1.22%. Finally, the median income for Hispanic families is $74,795, which is 91.55% of the state’s median household income, and it’s higher than the national average (86.74%).

In sixth place is Colorado. Of all small businesses, 12.83% are Hispanic-owned, which is the ninth-highest in the nation and more than the average of 8.67%. Additionally, among Hispanic-owned businesses in Colorado, 9.03% are employer firms, which is higher than the national average.

Additionally, 21.88% of Colorado’s population is Hispanic, which is the seventh-highest percentage in the nation. Hispanic-owned businesses account for 2.05% of Colorado’s annual payroll, which is the seventh-highest in the nation.

Washington state comes in seventh place. Washington saw a 22.22% increase in Hispanic-owned businesses from 2023 to 2024, which is higher than the national average of 21.58%. It also came in second for the percentage of employer businesses, with 16.68% of Hispanic businesses being employer firms. Finally, Washington state has a higher than average percentage of Hispanic people, at 13.75%.

Nevada comes in eighth place overall, and 19.80% of Nevada’s small businesses are Hispanic-owned, which is the sixth highest in the nation. Additionally, 28.68% of Nevada’s population is Hispanic, ranking it fifth in this metric. Hispanic-owned businesses account for 3.06% of Nevada’s annual payroll, ranking the state fourth in this metric. Finally, the median household income for Hispanic families is 91.64% of Nevada’s median household income, ranking the state ninth in this category.

Ninth on our list is Delaware. With 6.63% of all small businesses being Hispanic-owned, Delaware had the third-highest percent increase in Hispanic-owned businesses, at 36.29%. Additionally, the state ranked within the top twenty for the percentage of Hispanic employer firms, with 8.97% of all Hispanic-owned businesses hiring workers.

The final state on our list for the best states for Hispanic-owned businesses is California. It has the fourth-highest percentage of Hispanic-owned businesses, at 24.57%. Also, 39.40% of California’s population is Hispanic, which is higher than the national average of 12.59%. Finally, Hispanic-owned businesses account for 2.74% of California’s annual payroll, ranking the state fifth for that metric.

These states saw the highest percent increase in Hispanic businesses from 2023 to 2024, demonstrating a healthy and growing environment for Hispanic business owners.

Methodology

To determine which states are best for Hispanic-owned small businesses, the B2B Reviews research team compared all 50 states and the District of Columbia across six key metrics.

We considered factors like the percentage of Hispanic-owned businesses, the percentage of those that were employer businesses, the percentage increase of Hispanic-owned businesses, the estimated contribution to annual payroll, and more.

States were ranked within these metrics, earning a score based on the weighted value. We then graded them on a 100-point scale, with 100 points representing the states that are best for Hispanic-owned small businesses.

Percentage of Hispanic-Owned Businesses—Total 30 Points

The B2B Reviews research team gathered the total number of small businesses in each state. We then determined how many are Hispanic-owned using the latest SBA data. After, we calculated the percentage of Hispanic-owned businesses. States with a greater percentage of Hispanic-owned businesses scored higher.

Percent Increase of Hispanic-Owned Businesses—Total 20 Points

We collected the number of Hispanic-owned small businesses in 2023 and 2024 for each state. We then found the difference and determined the percent increase. We assigned higher scores to states with more significant growth.

Percent of Hispanic Employer Businesses—Total 20 Points

Using the latest data from the U.S. Small Business Administration, we found how many Hispanic-owned businesses are employer firms for each state. We compared that to the total number of Hispanic-owned businesses and calculated the percentage. States with a higher percentage earned more points.

Percent of Population That’s Hispanic—Total 15 Points

States with a larger Hispanic population tend to have stronger communities, positively impacting Hispanic-owned businesses. We calculated the percentage of the Hispanic population in each state; states with larger Hispanic population percentages scored higher.

Annual Payroll of Hispanic Businesses—Total 10 Points

Using the most recent data from the United States Census Bureau, we found the annual payroll of each state. We then identified the annual payroll of Hispanic businesses in each state. We compared those numbers and calculated the percentage. States with higher percentages earned more points.

Median Household Income of Hispanic Families—Total 5 Points

B2B Reviews compared the median income for Hispanic households to the state’s median income (looking at years 2019-2023). We then calculated the percentage. States with a higher percentage scored higher.

The Bottom Line

National Hispanic Heritage Month celebrates the histories, cultures, and contributions of American citizens with Hispanic heritage. The observation began in 1968 and has continued to grow since.

Hispanic businesses play a vital role in the American economy. Not only do they contribute $766.8 billion to the economy, but they also provide nearly 3 million jobs.

These businesses are essential to the Hispanic community, and B2B Reviews sought to raise awareness by highlighting which states are best for Hispanic businesses.

This National Hispanic Heritage Month, we encourage consumers to support local Hispanic-owned small businesses:

• Shop at Hispanic-owned businesses: Find and shop at local Hispanic-owned businesses, such as restaurants, boutiques, and grocery stores. Leaving reviews is also a great way to support these businesses.
• Work with Hispanic entrepreneurs: Whether you’re an investor or an event coordinator, working with Hispanic entrepreneurs on projects, events, or marketing campaigns builds relationships and opportunities for mutual growth.
• Support Hispanic-owned nonprofits: Supporting nonprofits that serve the Hispanic community helps empower minority business owners to receive training and resources.
• Collaborate on community initiatives: Similarly, you can work with Hispanic-owned businesses to host or sponsor community service projects. This can help businesses give back to their communities while building stronger local connections.

By actively supporting Hispanic-owned businesses this month and beyond, you can help ensure diverse businesses can grow, strengthening local communities and economies.

Fair Use Statement

If you wish to share our findings, please do so for non-commercial purposes only and provide a link back to this report so readers can access our methodology.

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