The growth of Hispanic business in the city of brotherly were the topics of a new report by the Greater Philadelphia Hispanic Chamber of Commerce (GPHCC) released Thursday.

The number of Latino-owned businesses in the region grew 28 percent in less than a decade — from 14,677 in 2007 to 18,787 in 2013.

Some are big and some are small but what they have in common, according to the report, is that “they all provide jobs for the region and display a rich cultural heritage relevant to innovation and the region’s growth.”  

GPHCC surveyed Latino business owners in the region and found that:

• Hispanic businesses comprise 12 percent of the total businesses within the top 10 industries.
• Latino businesses earn approximately $600 million annually and employ over 18,000 individuals.
• Approximately 30 percent of Latino business owners earn more than $100,000.

According to the report, the plurality of Latino businesses are in industries that do not require a college education, such as retail trade and construction, while a lower percentage are in industries such as professional services, finance and insurance.

The most significant concerns of Hispanic business owners are “attracting new customers” and “access to capital.” The lack of financial literacy and business education as well as language barriers are the two contributing factors impacting the latter.

“One of the primary challenges to financial literacy is that Hispanic business owners are one of the largest ‘unbanked’ groups in the Philadelphia area, which aligns with national statistics. This is partially due to a lack of understanding and trust of the banking system,” reads the report. “With 28 percent of Hispanic adults only speaking Spanish, many Hispanic business owners face difficulty in communicating with both Hispanic and non-Hispanic consumers.”

According to Varsovia Fernandez, president of GPHCC, the report about the fastest-growing market in Philadelphia, which represents 13 percent of the population, was long overdue. It also illustrates the need for further research to fully comprehend what Latino business and consumer markets need.

“We see the need to expand upon this report and work with our partners to find the critical pathways for the Hispanic community to be appreciated and developed, via traditional measures, as an economic driver for the region and nation,” Fernandez said.

The report was released in conjunction with Temple University's Fox School of Business and the Pennsylvania Department of Community & Economic Development.