Impact and Effect of Hispanic Growth on Small Business and Entrepreneurial Development (2005)

ABSTRACT Hispanic grow th is recognized throughout the United States of America, but nowhere is it as rapid as in the south. This report will assess the population growth in the United States since 1990 and more importantly the impact of that growth across America and Arkansas specifically. Hispanics come to America seeking better lives and job opportunities and they bring with them diverse cultures. The economic, social and educational challenges of an increasing population of immigrants must be met and dealt with on many levels. Issues, problems and opportunities will be examined as they relate to the Hispanic populous, the education arena and the business environment. After analyzing the economic, social, and educational aspects of the Hispanic community, society must have a better understanding of what needs to be done to assimilate Hispanics into today's modern business world. Before the business community can start the assimilation into small business and entrepreneurship, one must first have an understanding of the culture and pitfalls to be overcome in order to be successful. By having this greater understanding, it will create better workers for small to medium sized companies, as well as create entrepreneurs. POPULATION ASSESSMENT According to the 2000 Census Report, the Hispanic growth rate in the United States in the last decade hit an unprecedented 57.9 percent compared to a total U.S. population increase of 13.2 percent. Absolute numbers are recorded at 35,305,8 1 8 of the nations 28 1,42 1,906 residents or a saturation of 12.5 percent (U.S. Census Bureau, Census 2000). Estimates now bring that number to over 38.8 million. Projections predict the Hispanic saturation levels will rise to 18 percent in 2025 and 25 percent in 2050 and those projections appear conservative. A look at the make-up of those 35.3 million residents reveals 31.1 million Hispanics in the United States are foreign born including 16.1 million from Latin America. One fourth of those foreign born are from Mexico, the largest number of any country (Facts for Features) . Hispanics originate from nearly two-dozen different countries; they may be white or African American, new to the country or born to U. S. citizens, temporary residents or permanent residents. Some Hispanics in the United States speak Spanish while others are monolingual English speakers. Additional examination of the Hispanic population reveals a median age of 25.8 years compared to the overall national median of 35.3 years (U.S. Census Bureau, Census 2000). Only five percent of Hispanic residents are over 65 years of age. The obvious reason for this could be an inability to obtain work visas upon initial immigration. The remaining 95 percent of all Hispanic residents either minor children, 35.0 percent are under age 1 8, or they are of working age, 60. 1 percent are age 18-64 (Ramirez). The dispersion of Hispanics by age can be seen in Chart 1. A look at U.S. Hispanic population concentration identifies New York City as the largest city in absolute numbers with 2.2 million, 37 percent of which are Puerto Rican. New Mexico has the highest saturation level of any state with 42 percent of their total population attributable to the Hispanic community. One-half of all Hispanics in the United States live in two states; California with 1 1 million and Texas with 6.7 million and additionally three out of four Hispanics live in seven states - California, Texas, New York, Florida, Illinois, Arizona and New Jersey (Facts for Features). Regionally Hispanics are more likely to reside in the West (44.2 percent) and South (34.8 percent), as seen in Chart 2 (Ramirez). Hispanic growth in the last decade has been fastest in the South. Seven states (Alabama, Arkansas, Georgia, Nevada, North Carolina, South Carolina and Tennessee) more than tripled their Hispanic populations in the nineties; all but one of those states (Nevada) is in the south (Facts for Features). …