Minority Business Enterprises to reach $1 trillion in annual revenue by 2030, led by Latino-owned ventures

The National Minority Supplier Development Council (NMSDC) released its 2023 Minority Businesses Economic Impact Report and, among its many findings, revealed that MBEs are expected to reach $1 trillion in annual revenue by 2030.

Furthermore, the projection is largely based on the recent performance of Latino-led businesses which increased their total revenue by 50% in 2023, to over $114 billion. In fact, as of this year, Latino-owned businesses account for 31% of all NMSDC-certified MBE revenues and rank number one in annual revenue generation.

NMDSC spokesperson María Trochimezuk explained the impact of Latinos even further:

"Before the pandemic, Hispanic businesses were already responsible for $77 billion in annual revenues, which accounted for 25% of all revenues produced by NMSDC-certified MBEs. However, the Hispanic business community made even greater strides in 2023."

The report also dove into the impact of Latino enterprises in detail. For example, Latinos accounted for over $32 billion in total revenues in the construction industry, creating more than 100,000 jobs. "This growth was fueled in part by infrastructure projects currently being funded through historic investments by state and federal governments made possible by landmark legislation like the bipartisan Infrastructure Investment and Jobs Act (IIJA)" the study explains.

Other notable industries in which Latino-led MBEs excel are wholesale trade ($26.6 billion in total revenue in 2023), manufacturing ($15.8 billion in total revenue in 2023) and professional, scientific and technical services ($10.3 billion in total revenue in 2023)

MBEs led by Latinas in particular also saw an increase in annual revenue, reaching $15.6 billion in annual revenue in 2023, up from $13.2 in 2022.

Even though the impact of minority-owned businesses is noticeable, t:

"Unfortunately, at a mere 1.13% of the 2021 U.S. gross domestic product (GDP), the economic footprint of systematically marginalized communities of color falls distressingly short of equitable representation. This stark reality ignited a call to action – a resolute refusal to tolerate another half-century of incremental progress. The time had come to disrupt the status quo and close the equity gap once and for all."