Thursday, April 19, 2018
Business

PolitiFact: Claim about startup rate of Hispanic-owned businesses is half true

The statement

"The startup rate of Hispanic businesses is three times the national rate."

Libre Initiative, Aug. 10 in a Facebook post

The ruling

The Libre Initiative is a 501(c)4 nonprofit that has ties to the Koch brothers. They reach out to the traditionally liberal Hispanic community, espousing conservative ideals in favor of economic and religious freedom, and against the Affordable Care Act.

The Libre Initiative directed us to a White House report on the fiscal year 2013 budget that included the same claim, without elaboration.

"According to the most recent Census data, Hispanics are opening businesses at a rate three times faster than the national average," it said.

So we turned to the Census Bureau.

The Census Bureau conducts a survey of business owners every five years, broken down by various demographic groups, industry, size and location. The most recent report came out in 2010 and looks at the years 2002 to 2007.

The survey defines Hispanic-owned businesses as those operating in the United States that "self-identified 51 percent or more of their ownership … to be by individuals of Mexican, Puerto Rican, Cuban or other Hispanic or Latino origin."

According to the 2010 report, the number of Hispanic-owned businesses grew 43.7 percent from 2002 to 2007. The national average growth rate was 18 percent, so Hispanic-owned businesses grew at a rate that was a little more than twice as fast.

But the growth was not quite three times as fast as the national average, so we jumped back five years to the previous business owners survey results, which came out in 2006.

This survey seems to contain the claim's origin. Between 1997 and 2002, the national average growth rate for businesses was 10 percent, and the growth rate for Hispanic-owned business was 31 percent — just over three times the national rate.

We found a 2013 report by business intelligence firm Geoscape and the U.S. Hispanic Chamber of Commerce that had some more recent data. The report projected that in 2013, there would be 3.16 million Hispanic-owned businesses in the United States — a growth rate of 40 percent since 2007.

The Geospace report also said the average annual increase in Hispanic-owned companies during that time frame was 6.66 percent, compared with 3.14 percent annual growth among all U.S. companies.

"The Hispanic population has been starting and growing new businesses at nearly twice the rate of the general population and this trend has continued for more than 10 years," the report says.

Service areas and technology are among the top industries where this growth is happening.

The growth of Hispanic-owned businesses mirrors the country's rising Hispanic population. Between 2000 and 2010, the Hispanic population grew from 35.3 million to 54.1 million, which is more than a 50 percent growth, according to the Pew Hispanic Trends Project.

So, we found data that showed the number of Hispanic-owned businesses growing at three times the national rate between 1997 and 2002. However, more recent data shows a growth rate of Hispanic-owned businesses that's closer to twice the national rate. We rate this claim Half True.

Lauren Carroll, Times staff writer

Edited for print. Read the full version at PolitiFact.com.

Comments
St. Petersburg police remove disabled adults from ‘deplorable’ assisted living facilities

St. Petersburg police remove disabled adults from ‘deplorable’ assisted living facilities

ST. PETERSBURG — Beef jerky, mayonnaise and Altoids mints were the only edible things in view inside one of the houses. There was no running water. The refrigerator was empty. A bed sat on top of the deteriorating living room floor. Cigarette butts b...
Updated: 19 minutes ago
The St. Pete Pier takes another step forward

The St. Pete Pier takes another step forward

ST. PETERSBURG — Development of the city’s long-awaited pier advanced another step Thursday.The City Council approved a $15 million construction contract and additional money to design a waterside restaurant, build a playground and ferret out naming ...
Updated: 3 hours ago
Free rides on PSTA and HART buses to celebrate Earth Day

Free rides on PSTA and HART buses to celebrate Earth Day

Those who use mass transit across the Tampa Bay area can ride for free on Sunday.To celebrate Earth Day, both the Pinellas Suncoast Transit Authority (PSTA) and the Hillsborough Area Regional Transit Authority (HART) will be offering free rides on Su...
Updated: 5 hours ago
Here’s your first look at what will be Riverwalk Place, Tampa’s tallest tower

Here’s your first look at what will be Riverwalk Place, Tampa’s tallest tower

TAMPA — Developers on Thursday detailed plans for what they touted as the tallest building on Florida’s west coast, with condominiums priced in six and seven figures and a shimmering glass design they say would stand out in the skylines of New York, ...
Updated: 6 hours ago
Wells Fargo said to be target of $1 billion fine

Wells Fargo said to be target of $1 billion fine

Federal regulators are poised to impose a $1 billion penalty on Wells Fargo for a number of alleged misdeeds, including forcing customers to buy auto insurance policies that they didn’t need, according to people briefed on the regulatory action. The ...
Updated: 6 hours ago
Marriott Edition to bring five-star hotel ambitions to Water Street Tampa

Marriott Edition to bring five-star hotel ambitions to Water Street Tampa

TAMPA — At the Gramercy Park Hotel in New York City, hotelier Ian Schrager transformed a Jazz Age building with its own rich history into a destination offering even more heady experiences — extravagant, edgy and bohemian.In Tampa, Schrager will have...
Updated: 7 hours ago
Tech Data names Rich Hume to take over as CEO

Tech Data names Rich Hume to take over as CEO

CLEARWATER — A longtime IBM executive is becoming the new leader of Tampa Bay’s largest public company. Tech Data on Thursday named Richard "Rich" Hume as its new CEO effective June 6. Hume joined Tech Data two years ago and is currently the chief op...
Updated: 8 hours ago
LA Fitness tones up Hillsborough location

LA Fitness tones up Hillsborough location

When LA Fitness on West Hillsborough Ave. reopens mid-summer, it will have undergone a $5 million renovation and a complete transformation. Closed since November 2017, the 10-year-old facility was completely torn down and is still undergoing construc...
Updated: 11 hours ago
Kids have fun and gain coding skills at Code Ninja in Westchase

Kids have fun and gain coding skills at Code Ninja in Westchase

A new program that teaches coding to kids is coming to the Tampa Bay area. Code Ninjas is a Houston-based franchise that is opening its first location in Westchase in early May. There are plans for other centers in Carrollwood, South Tampa, New Tampa...
Updated: 11 hours ago
Graze all day at Armature Works

Graze all day at Armature Works

TAMPA HEIGHTS— Graze 1910 upholds the comfortable and relaxing, yet elegant setting of Armature Works with its "comfort food" offerings and dedication to serving breakfast all day."It’s the way I eat. I graze all day," said owner Raymond "Ray" Menend...
Updated: 11 hours ago