NEW YORK, Oct. 15, 2025 (GLOBE NEWSWIRE) -- Biz2Credit’s 2025 Latino-Owned Business Study found that average revenues for both Latino and non-Latino small businesses dropped between 8-9% for both groups in the last 12 months.

The annual study examined the performance of Latino-owned small to midsized companies -- from early stage to established companies -- in the U.S. from July 1, 2024, to June 30, 2025. It examines financial indicators, including annual revenue, operating expenses, age of business, and credit scores of both Latino-owned and non-Latino-owned companies.

“As Latino-owned businesses continue to mature and scale, I expect their growth to increasingly drive innovation in their communities, close credit-access gaps, and play a pivotal role in shaping the economic future of America,” said Rohit Arora, CEO of Biz2Credit and Biz2X, who oversaw the research. “While our study shows a recent reduction in earnings, Latino entrepreneurs have consistently demonstrated resilience amid economic pressures — and that strength will help position them for long-term success.”

Key findings: Latino-owned vs. non-Latino-owned Businesses

1. The average annual revenue of Latino-owned businesses decreased by 8.5% from $662,780 in 2023-24 to $606,261 in 2024-25. The average annual revenue for non-Latino Businesses also fell by 8.9% from $773,674 in 2023-24 to $668,125 in 2024-25.
2. Operating expenses remained largely unchanged for both groups. For Latino-owned businesses, they increased 0.4% from $594,392 to $596,654. For non Latino-owned, expenses rose 3% from $642,998 to $662,172.
3. The average business credit score* for Latino owned businesses decreased from 647 in 2023-24 to 643 in 2024-25. In comparison, the personal credit score for non-Latino-owned businesses decreased from 659 to 656.
4. The age of business for Latino-owned businesses increased from 64 months in 2023-24 to 65.4 months in 2024-25. This is an indication of the staying power of Latino-owned companies. In comparison, non-Latino-owned businesses were in operation for an average of 81 months.
5. The average approved funding amount** for Latino-owned businesses grew from $63,440 in 2023-24 to $68,743 in 2024-25. Non-Latino businesses owners saw growth as well, from $77,578 in 2023-24 to $87,376 in 2024-25.
6. Construction accounted for the largest industry category of Latino-owned companies examined in the study, followed by Other Services (except Public Administration), Accommodation and Food Services, Retail Trade, and Transportation and Warehousing.
7. By state, nearly one-quarter (22.8%) of funding requests from Latino-owned firms came from Florida, followed closely by California (19.5%), and then Texas, New York, and New Jersey.
   

*Average credit score is derived from the personal FICO credit score of business owners.
**Average approved funding amounts and average funding sizes are determined by the qualifications of funding applications, including FICO scores and business revenues. Any discrepancies are driven by these financial metrics.

Impact of Latino-Owned Businesses on the U.S. Economy

The economic impact of Latino-owned businesses is staggering. Latinos start more businesses per capita than any other racial or ethnic group in the U.S., according to McKinsey. There are approximately 5 million Latino-owned small businesses across the U.S., according to the U.S. Treasury Department. What’s more, they continue to scale rapidly. Latino-owned businesses have grown at an average annual rate of 7.7%, compared to a 0.46% growth rate for all employer businesses, according to Brookings.

The financial footprint of Latino-owned businesses is substantial. The U.S. Latino GDP now exceeds $3.7 trillion, reflecting both the scale and resilience of these enterprises. Their rapid growth and entrepreneurial spirit continue to reshape the business landscape, highlighting the importance of supporting and investing in Latino entrepreneurs. As Latino business ownership continues to rise, their influence on innovation, employment, and the overall economy is expected to expand even further.

Methodology

Biz2Credit’s 2025 Latino-Owned Business Study is an annual review of the financial performance of Latino-owned small to midsized businesses in the United States, categorized by revenue generation. The study reviewed over 121,000 funding requests from both Latino-owned and non-Latino-owned businesses across all 50 states and 20 industries by analyzing credit inquiries and applications from July 2024 to June 2025. The analysis focused on variables such as submitted applications, annual revenue, operating expenses, business age, personal credit (FICO) scores*, funding rates, and average loan sizes. The study offers insights into the performance of Latino-owned private companies over the past year, using 2023-2024 data to compare average revenue and expenses year-over-year for 2024-2025.

About Biz2Credit
Founded in 2007, Biz2Credit has helped thousands of companies access more than $8 billion in small business financing. The company is expanding its industry-leading Biz2X® technology in custom digital platform solutions for banks and other financial institutions, investors, and service providers. Visit www.biz2credit.com, Instagram, Facebook, and X (formerly Twitter).

Media Contact: Tracy Rubin, (818) 585-4736, tracy@jcmg.com