Stanford Graduate School of Business · 11th Annual Report

State of Latino Entrepreneurship Report 2025

Latino-owned businesses are the fastest-growing segment of the U.S. economy — adding 180K net new firms, 976K jobs, and $337B in new revenue from 2017 to 2023, while White-owned businesses lost 140K firms and added only 1% job growth.

553K
Latino-owned employer firms in the U.S.
9.7% of all U.S. firms
$832B
Annual revenue generated by LOBs
+68% growth since 2017
180K
Net new firms added 2017–2023
+48% vs. −3% for White-owned
976K
New jobs created by LOBs
+29% vs. +1% for White-owned
$4.1T
U.S. Hispanic GDP — 4th largest economy globally
+50% since 2015
$2.1T
Potential GDP gain at revenue parity
+6.7% U.S. GDP
2017–2023 Cumulative Growth · Latino-Owned vs. White-Owned Businesses

LOBs outpaced White-owned firms across every major metric.

Source: Stanford 2025 SOLE Report · U.S. Census Annual Business Survey · Red bars = negative growth

Growth by Metric: Side-by-Side

Firm Count Growth (2017–2023)
+48%
Latino-Owned Business
-3%
White-Owned Business
Revenue Growth (2017–2023)
+68%
Latino-Owned Business
+45%
White-Owned Business
Employment Growth (2017–2023)
+29%
Latino-Owned Business
+1%
White-Owned Business
Avg Annual Firm Growth Rate
+6.6%
Latino-Owned Business
-0.3%
White-Owned Business
Avg Annual Revenue Growth Rate
+11.3%
Latino-Owned Business
+7.5%
White-Owned Business
Avg Annual Employment Growth
+4.8%
Latino-Owned Business
+0.1%
White-Owned Business

Absolute Numbers: What the Growth Means

Net new firms added
+180K
LOB
−140K
WOB
Net new jobs created
+976K
LOB
+658K
WOB
Total firms (2023)
553K
LOB
4.3M
WOB
Total revenue (2023)
$832B
LOB
$16.2T
WOB
Total employees (2023)
4.3M
LOB
54.2M
WOB
Avg revenue per firm
$1.5M
LOB
$3.5M
WOB
Key Findings

Six forces reshaping American business

The 2025 SOLE Report documents a business community expanding rapidly across industries, geographies, and growth strategies — while facing persistent structural barriers.

01

Fastest-Growing Business Segment

Latino-owned businesses added 180K net new firms (+48%) from 2017–2023 while White-owned businesses lost 140K firms (−3%). LOBs outpaced White-owned businesses in every major metric: revenue, employment, and firm creation.

02

$2.1 Trillion Opportunity

If Latino-owned businesses generated revenue at parity with White-owned firms (~$3.8M per firm), an estimated $2.1 trillion could be added to the U.S. economy — a 6.7% increase in GDP. Currently, the average LOB generates $1.5M vs. $3.5M for White-owned businesses.

03

Community-Driven Entrepreneurs

17% of Latino-owned businesses start out of commitment to their community vs. 12% of White-owned. LOBs are also more likely to emphasize employee well-being (13% vs. 7%) and high-quality customer experience (14% vs. 4%).

04

Global by Default

49% of Latino-owned businesses operate internationally vs. 42% of White-owned. LOBs enter international markets earlier in their lifecycle, with profit margins comparable to White-owned businesses.

05

Tech-Centric and AI-Ready

26% of Latino-owned businesses are tech-centric (vs. 20% White-owned), up 7 points since 2021. 70% of tech LOBs have adopted AI, and they generate profit margins comparable to White-owned firms despite being younger.

06

Persistent Capital Gap

Latino-owned businesses requesting $1M+ in funding are about half as likely as White-owned to receive full funding (22% vs. 45%). Pre-seed/seed VC participation fell 79% from peak levels.

Interactive Data

Explore the full report findings

Select a section to dive into the data. All charts are drawn directly from the 2025 Stanford SOLE Report. Negative values and declining trends are shown in red.

From 2017 to 2023, Latino-owned businesses added 180K firms (+48%) and 976K jobs (+29%), while White-owned businesses lost 140K firms (−3%) and added only 658K jobs (+1%). LOBs added more net new firms and jobs than businesses owned by any other major racial/ethnic group.

  • +48% LOB firm growth vs. −3% White-owned
  • +68% LOB revenue growth vs. +45% White-owned
  • +29% LOB job growth vs. +1% White-owned
State-Level Firm Growth

Top 4 states · 2017–2023 · Red = decline

California
118K
LOB firms (2023)
+41%
LOB growth
-3%
WOB growth
Florida
110K
LOB firms (2023)
+47%
LOB growth
+3%
WOB growth
Texas
80K
LOB firms (2023)
+39%
LOB growth
+0%
WOB growth
New York
30K
LOB firms (2023)
+25%
LOB growth
-7%
WOB growth
Frequently Asked

Key questions from the report

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The 553,000 Latino-owned employer businesses documented in this report represent fleet buyers, executive vehicle purchasers, and multi-unit decision-makers. The $832B in annual revenue they generate is the market most automotive brands are systematically failing to reach.

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