The Hispanic community’s impact on the United States’ economic landscape is truly remarkable. With Hispanics contributing significantly to population gain and projected household growth, they possess a distinct advantage in connecting with and serving a diverse customer base. Moreover, their income growth positions them as key drivers of economic spending, creating an abundance of business opportunities within this flourishing community.
Whether you’re driven to start your own company or join forces with a franchisor, a world of opportunities eagerly awaits your exploration as a Hispanic or Latino entrepreneur. You can find success in any number of growing industries, including the business services sector, which is expected to grow by 1.8% this year, according to the International Franchise Association. The organization estimates 102,000 business services franchises are projected to open in the U.S. in 2023 alone.
From retail stores and restaurants to offering essential services like insurance and tax preparation, you are bound to make a lasting imprint on the community you serve.
Let’s dive into some valuable insights and trends that can equip you for success.
What Industries Offer the Best Hispanic Business Opportunities?
According to Hispanic Market Advisors, the top industries with franchise opportunities for Hispanics and Latinos are:
- Residential cleaning
- Insurance
- Tax preparation
- Retail food stores
Each of these sectors provides promising opportunities for Hispanic and Latino founders, allowing them to offer valuable services within their community and beyond.
Independent Ventures vs. Franchising
Hispanic- and Latino-owned businesses have grown by 44% over the last 10 years, creating roughly 400,000 jobs in 2022. While sole proprietorships, partnerships, limited liability companies, and corporations have likely played a huge role in this growth, so has franchising.
Franchising offers a pathway to success by providing established business models and proven systems. Plus, franchising gives both new and experienced entrepreneurs the support, guidance, and resources to start generating revenue quickly. Latino and Hispanic franchisees have the benefit of leveraging a national brand and connecting with a vibrant community that has a massive buying power of more than $2 trillion and counting.
Building a company from the ground up entails inherent risks, but partnering with the right franchise can minimize those risks and pave the way for a smoother journey to success.
What Are Some Hispanic Franchise Opportunities?
Hispanic and Latino franchisees often focus on providing services such as home cleaning, accounting, and insurance. This allows them to engage directly with community members and turn their small business into a trusted local institution.
Here are a few notable examples of franchises that actively promote and support opportunities within the Latino and Hispanic markets.
1. Maid Right
Owned by Premium Service Brands, Maid Right is a residential cleaning service with a franchise model that has expanded into Hispanic and Latino communities across the U.S. in recent years. Cleaning services have an established place in any economy, and Maid Right provides an accessible way for aspiring business owners to enter the market.
Maid Right’s Latino campaign attracts and recruits bilingual prospects, offering the same training and business coaching it extends to all of its franchisees. All franchisees learn how to use Maid Right’s integrated marketing programs to promote their services in their cities and towns; they also have access to proprietary technological integrations along with a fully staffed contact center.
2. 7-Eleven
In recent years, 7-Eleven has also become a top choice for Hispanics and Latinos looking to launch a franchise. The convenience store prides itself on its diversity efforts, building a franchise team that consists of individuals from various cultural backgrounds. Entrepreneurs can thrive in an environment that values their unique perspective and connection to a thriving cultural community.
The company takes a proactive stand in helping its franchises hit the ground running. It allows franchisees to finance up to 65% of their initial franchising fee and ease the burden of start-up costs by handling location choice, zoning, store build-out, and equipment installation. All 7-Eleven franchisees receive ongoing skills training and guidance in-class and on-site. With 7-Eleven, Franchisees can customize up to 15% of their store inventory to better meet the needs of those who live in their communities.
3. SiempreTax+
Latino and Hispanic business owners can get involved with the business services sector through tax preparation service companies like SiempreTax+, which specifically targets Spanish-speaking communities. By offering bilingual notary services and competitive financial products to its customers, SiempreTax+ franchises fill a specific niche that helps their franchisees thrive.
According to a national consumer survey by MRI-Simmons (NHCS 2014), 74% of Hispanics in the United States prefer seeking professional assistance when it comes to filing their taxes. By tapping into this demand and providing quality services, entrepreneurs can serve as a trusted resource for their community’s tax preparation needs.
4. Freeway Franchise
Joining forces with this esteemed national insurance company opens doors to a world of invaluable resources, cutting-edge marketing strategies, advanced technology, comprehensive data, and a wide array of coverage options tailored to the needs of Spanish-speaking residents in local communities.
Their unwavering commitment to their franchisees’ success is evident in their dedicated support, sharing proven business practices, and providing franchisees with distinct advantages to set them apart from the competition. With their guidance and collaboration, Hispanic and Latino entrepreneurs are empowered to thrive in the insurance industry and make a meaningful impact in the lives of those seeking affordable health, car, and life insurance policies.
What Are the Challenges, Risks, and Promises for Hispanic and Latino Business Growth in 2024?
Lack of funding and not knowing where to get financing support is an obstacle that continues to pose a challenge in 2024. Like any first-time business owner, aspiring Latino and Hispanic entrepreneurs may run into issues with credit scores, language barriers, and managing the bureaucratic process of starting a new company. Even after getting their business off the ground, they may find themselves limited in terms of promoting and marketing their businesses.
Many Hispanic and Latino entrepreneurs aren’t aware of the countless number of resources that are at their disposal and that lack of awareness is one of the biggest challenges of all. Tapping into the right resources can help minimize the challenges and risks new businesses face and maximize the promises of growth. Reputable franchises provide their franchisors with all the education, information, and guidance they need to overcome these issues, making franchising an attractive option for aspiring founders.
Freeway Franchise offers a comprehensive Hispanic and Latino resources hub, listing several articles that provide guidance on launching a franchise, with the intent of helping orient entrepreneurs looking for help and insight. There are also links to a handful of funding sources for business owners, including the U.S. Chamber of Commerce, Camino Financial, and federal agencies.
Join the #1 Team in the Insurance Franchise Industry
Ready to ride the wave of top business opportunities in the Latino and Hispanic markets? Don’t just dream it, seize it!
Freeway Insurance has helped many Hispanics and Latinos make their entrepreneurial dreams come true while enjoying the potential of the lucrative insurance industry. Get started online or give us a call at (877) 822-3024.
