Now that the GOP’s Cruz and Kasich have official dropped out of the 2016 primary presidential election, California may be facing a very real threat to one of their most thriving business communities: the Hispanic population.
If Republican presidential candidate Donald Trump successfully executes his plan to build a border wall, keeping immigrants from the country, he may very well choke off one of the fastest growing sources of business in California.
The face of small business is changing in California, and in the San Diego area in particular, even as the state’s population goes up and housing prices increase dramatically. Although homeowners get the option of an FHA loan, with a down payment as low as 3.5%, it doesn’t always help in San Diego’s high-priced housing market. Meanwhile, business owners nationwide are wary of taking out loans in order to cope with increasing costs for wages and operational expenses.
But recent research released by UC Riverside showed that businesses owned by Hispanics are actually being created at a faster rate than all businesses across the United States. At that, the Hispanic demographic is the only group challenging the trend of diminished business that has been occurring since the Great Recession in 2009.
According to statistics, Hispanic-owned businesses now make up wholly 37% of all businesses in inland Southern California — totaling to 23% in California and 12% across the United States.
And between 2007 and 2012, the number of Hispanic owned businesses went up 46% across the United States. In Inland California, the number went up an incredible 51%.
Yet at the same time, the rate of growth among small businesses in the United States and California were much slower, with only 3% across the United States and 5% in California.
“For years, Hispanics have made up a large and growing share of the population and workforce of the nation, state, and inland region,” said Christopher Thornberg, director of the forecasting center and one of the report’s lead authors. “As a measure of socio-economic advancement, it is an important and positive trend to see proprietorships increasing and a healthier balance developing between Hispanic business owners and workers.”