The Southwest’s Golden Opportunity: Unleashing Hispanic Innovation to Fuel American Dynamism

As we step into 2025, one belief grows stronger with each passing year: the American Southwest is at a profound inflection point. The Brookings Institution recently released a compelling research report in their new series examining the state of Latino-and Hispanic-owned businesses. This report, authored by Andre M. Perry and Manann Donoghoe, provides invaluable insights that reaffirm this perspective and highlight the transformative momentum underway.

The facts are undeniable. The Southwest stands uniquely poised at the crossroads of economic opportunity and cultural renaissance, fueled by the vitality of its Hispanic population. Census projections anticipate that the Hispanic population in the United States will grow by nearly 30% by 2060, comprising more than 27% of the total population. This remarkable growth highlights the imperative of investing in Hispanic communities—not merely as a moral obligation but as a strategic cornerstone for securing America’s economic future.

Far from being a passive demographic shift, this population growth is catalyzing economic innovation, cultural creativity, and resilience. The Southwest, particularly cities like my beloved hometown of El Paso, as well as San Antonio, Austin, McAllen, and Laredo, among many others in the Southwestern states serves as a living blueprint for what is possible. These cities exemplify the potential unleashed when communities and businesses embrace Hispanic entrepreneurial spirit and cultural richness. Together, they are redefining what growth looks like, not only for the region but for the nation as a whole.

Economic Powerhouse

Hispanic-owned businesses are a cornerstone of the U.S. economy, exemplifying the resilience and innovation that define American enterprise. According to the Census Bureau, these businesses generated an impressive $572.9 billion in revenue in 2021, contributing significantly to the nation’s economic vitality. Hispanic entrepreneurs are 30.6% more likely to own businesses than the general U.S. population, with over 2.5 million Hispanic entrepreneurs nationwide. In Texas alone, Hispanic-owned businesses inject tens of billions of dollars annually into the state’s economy, with cities like El Paso standing out as a vibrant hub of entrepreneurial growth.

The rise of Latino and Hispanic-owned businesses is one of the most promising narratives in modern American commerce. These enterprises have seen consistent growth, with an average annual increase of 5.6% between 2018 and 2021. Notably, both male- and female-led Hispanic businesses have thrived, growing at average rates of 5.4% and 7.4%, respectively. These figures underscore not only the resilience of Hispanic entrepreneurs but also their growing influence in driving regional and national economic development.

El Paso, affectionately known as the "Sun City," is a shining example of this dynamism. Strategically positioned on the U.S.-Mexico border, it serves as a vital hub for cross-border trade and commerce. This proximity creates a unique entrepreneurial ecosystem that draws strength from its bicultural workforce and deep Hispanic cultural roots. From logistics firms to burgeoning tech startups, El Paso businesses are thriving, propelled by their strategic location and the city’s role as a gateway to Latin America.

Across the Southwest, cities such as Laredo, Eagle Pass, and El Paso are home to a striking concentration of Latino-and Hispanic-owned businesses. In metro areas like these, more than 50% of total employer firms are owned by Hispanics, though these numbers still reflect untapped potential. For instance, while Hispanic residents comprise 95% of the population in Laredo and Eagle Pass and 83% in El Paso, Hispanic business ownership has yet to reach parity. Understanding the dynamics of these markets is key to creating environments that encourage and support business ownership across all communities.

Further east, San Antonio and Austin illustrate the diverse ways in which Hispanic entrepreneurship is shaping the future. San Antonio, with its rich historical and cultural ties to Mexico, exemplifies the integration of tradition with modern business innovation. Austin, known for its forward-thinking tech ecosystem, is increasingly benefiting from the creativity and drive of Hispanic entrepreneurs, including venture-backed startups. Together, these cities highlight the untapped potential of a demographic that is not only growing but redefining the contours of American ingenuity.

The Cultural Renaissance of the Southwest

The influence of the Hispanic community reaches far beyond economics, profoundly enriching the cultural tapestry of the Southwest. From the global domination of Latin music to the widespread love of traditional foods like tacos and tamales, Hispanic culture is a cornerstone of the region’s identity. Cities such as El Paso and San Antonio stand as vibrant cultural epicenters, offering festivals, art, and culinary experiences that celebrate and elevate Hispanic heritage.

In El Paso, events like the annual El Paso Sun Bowl, El Paso Film Festival, and Chalk the Block art festival exemplify the creative energy of Hispanic artists, sport aficionados, and musicians. These gatherings not only draw visitors from across the region but also foster a deep sense of community and pride among residents. San Antonio, with its iconic River Walk, Fiesta San Antonio, and cultural institutions like the Guadalupe Cultural Arts Center, continues to be a beacon of tradition and innovation. The revitalization of the Pearl District, a transformative project over the last decade, further highlights the city’s dedication to blending historic charm with modern vibrancy. In Austin, I foresee a rise of programming that caters to the hispanic community to their annual SXSW conference and festival - blending culture, education, film, music, and technology.

The Southwest is also home to globally celebrated artists who embody the region’s unique cultural fusion. Grupo Frontera, with its genre-defying sounds, resonates across borders and exemplifies the blending of traditional and contemporary influences. Similarly, artists like Khalid, a proud native of El Paso, and Becky G, whose Texan roots inspire her music, underscore the Southwest’s role as a cultural incubator. Their global success highlights the region’s extraordinary ability to produce talent that bridges local traditions with international appeal.

These artistic achievements, alongside festivals, cuisine, and institutions, are more than celebrations of heritage—they are active threads in the evolving narrative of American culture. Important work is also being done to highlight and evaluate human consciousness via cinema for this community at-large, such is the work of Bianca Quesada with ARCUS Studios , and Tom Chavez & Jacqueline Martinez Garcel with Murado Entertainment. Hispanic communities in the Southwest are not just preserving traditions; they are driving cultural innovation, blending the past with the future in ways that strengthen America’s identity. As Hispanic contributions continue to shape music, art, cuisine, and more, they enrich the nation as a whole, reminding us that the diversity of the American experience is its greatest strength.

Unlocking Economic Opportunities

Investing in Hispanic-owned businesses is a strategic opportunity to unlock untapped talent and drive economic growth across America. Research from Brookings highlights that Hispanic entrepreneurs, like many others, face barriers such as limited access to capital and mentorship. Addressing these challenges isn’t just about helping one group—it’s about tapping into the vast potential that exists within our communities, fueling innovation and creating opportunities that benefit the entire nation.

Recognizing and building on the strengths of specific industries and populations accelerates growth and innovation. For example, Hispanic-owned businesses are well-represented in the construction sector, which stands to play a critical role in advancing new infrastructure projects and renewable energy initiatives under policies like the Inflation Reduction Act. By aligning this entrepreneurial energy with national priorities, such as infrastructure development and sustainability, we can harness the full potential of these businesses to power America’s future.

Cities across Texas are already paving the way with initiatives designed to bolster entrepreneurship. Austin’s Economic Development Department provides grants and resources tailored to minority-owned businesses, helping them scale and innovate. Similarly, San Antonio’s Small Business Economic Development Advocacy Program prioritizes contracting opportunities for small businesses, fostering growth in industries that create jobs and strengthen communities. These local strategies highlight the power of targeted support to amplify opportunity and catalyze regional and national progress. Another example is the Texas Association of Business, where their annual Forum brings together economic developers from Canada, the United States and Mexico, to include on panels for trade, migration, semiconductors, energy. Texas is even making strides in small business formation, just last month Governor Greg Abbott appointed Glenn Hammer and Jeff Burdett as co-chairs of a Small Business Freedom Committee designed to identify regulations and TSG practices which are unnecessary and slow down innovation.? Yet, gaps remain between the remarkable growth of the Hispanic population and its representation in business ownership. This disparity presents a tremendous opportunity to expand these enterprises and drive broader economic growth. By addressing the barriers Hispanic entrepreneurs face, such as access to capital and resources, we can unlock significant potential for economic expansion and job creation—not only within Hispanic communities but across the nation.

We have the opportunity –and indeed, the imperative– to unleash the ingenuity, resilience, and entrepreneurial spirit that exists across America. By breaking down barriers and expanding access to resources, we can create an ecosystem where talent and opportunity converge, driving prosperity and innovation for all. This is how we ensure a dynamic, thriving future—by tapping into the boundless potential that lies within our diverse and enterprising communities.

The Southwest’s Strategic Advantage

The Southwest’s geographic location offers extraordinary advantages that amplify its role as a critical driver of America’s economy. Positioned along major trade corridors that link the U.S. to Mexico and Central America, cities like El Paso and Laredo serve as vital gateways for international commerce. El Paso’s border ports alone facilitate more than $80 billion in trade annually, underscoring the region’s strategic importance to national and global markets.

The region’s young and rapidly growing Hispanic population represents another key advantage. At a time when the U.S. workforce is aging, this demographic—with a median age nearly a decade younger than the national average—provides a dynamic source of energy, talent, and innovation. This vitality is especially evident in Texas, where record numbers of Hispanic youth are enrolling in colleges and universities, positioning themselves to become the nation’s next generation of leaders, innovators, and entrepreneurs.

Embracing An Inflection Period in the Southwest

The Southwest’s future prosperity is not just a regional opportunity—it’s a cornerstone of America’s economic and cultural dynamism. By fully embracing the potential of its Hispanic population, the region can become a powerful engine of growth, innovation, and progress that benefits the entire nation. Cities like El Paso, San Antonio, McAllen, Laredo, and Austin are already demonstrating what’s possible when entrepreneurial energy, cultural richness, and community investment converge. But the possibilities ahead are even greater.

Policymakers, investors, and community leaders have a unique opportunity to fuel this momentum by championing initiatives that empower entrepreneurs, celebrate diverse cultural contributions, and remove barriers to success. Immigrant communities, often undervalued in broader discussions, have long been integral to America’s growth story. Recognizing their role and moving beyond divisive narratives unlocks new opportunities to invest in the talent and drive that define these communities.

By fostering an inclusive environment where innovation thrives and contributions are valued, the Southwest can position itself as a model for the nation—a dynamic region that reflects the very best of what America can achieve. When every individual’s potential is nurtured, when barriers are replaced with bridges, the results ripple far beyond state or regional borders. This is the promise of America: a country propelled forward by the creativity, energy, and diversity of its people, building a brighter future together.