For more than two decades, the Hispanic Business 500 has served as a barometer of the U.S. Hispanic economy. The annual directory of Hispanic-owned firms tells a story of consistently improving weather. Since the directory first appeared with only 400 companies in 1983, its tally of revenues has increased seven-fold and only twice have the numbers dipped from the previous year.
While some individual companies appeared on the list and sank into oblivion, others have become perennial fixtures. Many others fell off the list out of refusal to submit required information or after a merger or acquisition reduced U.S. Hispanic ownership below the 51 percent threshold. In true entrepreneurial fashion, the 500 has evolved and adapted in response to its market environment.
The 500 directory shows a maturation of companies from start-up phase to the middle market (revenues between $5 million and $50 million) and beyond. On the first 500 in 1985, only 230 companies had revenues of $5 million or more. By 1996, revenues of $5 million was the minimum to make the list. That year 445 companies fell in the middle market range. On the current 2004 directory, 399 companies qualify as middle market, with rest entering the ranks of fully mature firms.
The 500 has grown in size and sophistication, but what can it tell about the largest U.S. Hispanic economy? A before-and-after comparison by industrial sector shows that during the last two decades, successful Hispanic entrepreneurs have moved out of manufacturing, wholesale, finance and into construction and services. In the retail sector, the system of franchised auto dealerships has developed as a viable model for producing large Hispanic-owned enterprises.
In documenting the progress of Hispanic entrepreneurs, the Hispanic Business 500 has given voice to ignored community. Every year newspapers and TV stations around the country produce profiles about local companies on the directory. Major media from The Wall Street Journal to network news broadcasts discuss its significance. Marketers, academic researchers, and government officials study the list. Entrepreneurs feature their inclusion on the 500 in brochures, resumes, and wall plaques. For all those involved in the U.S. Hispanic economy, the Hispanic Business 500 provides a measure of performance and progress.
