Hipic-owned businesses are booming, with a growth rate double that of U.S. companies overall.
A recent by and the (USHCC) revealed the rapid growth of Hipic entrepreneurship — and the impact of Hipic businesses on the economy. The study projects that there will be 4.23 million Hipic-owned businesses in the U.S. by the end of this year. The number has grown by 27.5 percent since 2012, vs. the 12.6 percent growth rate for all U.S. businesses over that time period.
This surge in business ownership comes at a time of slow growth for the U.S. Hipic population, thanks in part to a decline in immigration from Latin America. Immigration from Mexico has even slowed to a standstill at times, according to the . Still, though Hipics comprise 17.4 percent of the U.S. population, the Geoscape/USHCC study finds this group accounts for 20 percent of all American entrepreneurs.
In fact, Hipics are 1.5 times more likely than the general population to start a business, according to the . Sales from Hipic-owned businesses contribute more than $668 billion annually to the U.S. economy — a 29 percent increase since 2012.
Growth in entrepreneurship could fuel some important changes. Hipic business owners are 1.7 times more likely to earn more than $100,000 in annual household income, compared with Hipics overall. Nearly two-thirds of Hipic entrepreneurs — vs. 38 percent of Hipics overall — earn more than $50,000 a year, according to the study. Hipic business owners are also more likely to contribute to financial institutions (including financial planners, mutual funds, second homes and IRAs) than the overall Hipic population.
To be sure, there’s still room to grow and scale. Hipic-owned businesses tend to have fewer employees and bring in less revenue than U.S. businesses on average. Last year, researchers from the estimated that if the size of Hipic-owned businesses had matched the national average, the U.S. gross domestic product would have increased by $1.4 trillion, or 8.5 percent, in 2012.
“Throughout all corners of the United States, Hipic entrepreneurs play a crucial role in supporting the growth of local communities,” said Javier Palomarez, president and CEO of the USHCC, in a press release accompanying the study. “They create American jobs, maintain our leadership in global markets and contribute toward the mutual prosperity that makes America’s economy the greatest in the world.”