Building the
Hispanic Portfolio

By Michael L. Barrera, USHCC President & CEO

Corporate America and Hispanic Business Could
Each Represent Sure Return

Today, there are approximately 2 million Hispanic-owned businesses in the country, generating close to $350 billion in annual gross receipts. By 2010, those numbers are expected to swell to 3.2 million Hispanic-owned firms, generating close to $465 billion. Despite this tremendous projected growth and the fact that Hispanics are the largest minority in the U.S., a recent informal survey of local Hispanic Chamber of Commerce leaders reports Corporate America may overestimate how attuned it is with the Hispanic market.
Where does the disconnect lie? Hispanic chamber leaders identified several areas where Corporate America may need assistance. As the largest and most influential advocate for this growing market, the USHCC offers a road map for Corporate America. I call it the “Hispanic Portfolio.”

The “Hispanic Portfolio”
This diversified Hispanic Portfolio must include three critical components: procurement opportunities for Hispanic businesses to help these organizations grow; an inclusive corporate governance structure in which Hispanics are part of the decision-making process; and strong philanthropic support of the Hispanic community. These will result in tremendous dividends over time.
Hispanic businesses are not looking for a handout or a hand-up. They are looking for a handshake, as business partners. Hispanic businesses—like all other companies—want more business. If Corporate America provides meaningful procurement opportunities and assists in getting businesses “procurement-ready,” they get a two-for-one—they receive a business partner, as well as valuable insight into the Hispanic market. The Hispanic entrepreneur is also a Hispanic consumer with a family made up of Hispanic consumers. More than likely, the Hispanic entrepreneur also has Hispanic employees who are also consumers. In sum, if Corporate America wants to do business within the Hispanic market, it needs to do business with Hispanics.
The second component of the Hispanic Portfolio is corporate governance. In order to build a relationship, you need to know your partner. If you want to be part of “our family,” Hispanics need to be part of the “corporate family.” There are approximately 11,000 board seats in the Fortune 1000, yet 187 Hispanics hold only 221 seats. This is only one example of the lack of Hispanics in decision-making positions in Corporate America. The best and quickest way to know about the Hispanic market is to place people fluent in Hispanic “cultural intelligence” in key, influential positions. It goes without saying that those selected must be qualified and ready for their responsibilities. However, Corporate America has to be willing and committed to identify this talent.
The third component is philanthropy. This is critical in relationship-building. It is also imperative Corporate America know the difference between the various Hispanic nonprofit organizations, both locally and nationally. Corporate America must continue to support organizations that educate, empower, inform and strengthen the Hispanic community, including the Hispanic business community. If Corporate America wants the Hispanic market to know about their products, they need to learn about the community, and philanthropy helps Corporate America in that learning process.

A critical investment
A strong relationship between Corporate America and the Hispanic market must be developed and nurtured over time, but Corporate America cannot “take its time” in developing these relationships. Corporate America needs to look past the next quarter and focus on the next quarter century. One out of every eight people in the U.S. is Hispanic, and by 2050 the number will reach 25 percent. This growing segment of the U.S. economy likes to see success stories within their community. The Hispanic market has strong loyalties and a long memory.
The measures suggested in the “Hispanic Portfolio” require commitment from the top leadership of a company or corporation. Further, like most great investments, early withdrawal comes with many penalties, in this case Hispanic purchasing power and long term loyalty and partnership. The key is commitment and a long-term strategic approach.