Hispanic business insights report takeaways and nine ways to support them
According to Pews Research, the U.S. Hispanic population reached 62.5 million in 2021, up from 50.5 million in 2010. It’s a 19% increase in one year, much faster than the nation’s 7% growth rate. That sounds like a very promising trend in relation to Latino Entrepreneurship. So, have these numbers affected how Latinos create and grow their businesses? Let’s take a look at the data and break it down.
Every year, Stanford creates the State of Latino Entrepreneurship report, which collects robust survey data from Latino-owned businesses or LOBs across the country. This year was their largest survey yet, with 15,000 business owners — 7,500 Latino-owned employer businesses and 7,500 non-Latino, White-owned employer businesses. It’s showing great numbers around business growth and opportunities for employment.
The report is showing that even in times of crisis, Latinos are not slowing down when it comes to creation of businesses. In fact, they are continuing to make strides in business and job creation, as well as making positive and proactive efforts on combating the challenges of the last few years.
Here are a four key points from the report about Hispanic businesses:
- Starting businesses at a faster rate than the national average across almost all industries — 44% growth in the number of businesses in the last 10 years compared to just 4% for non-Latinos.
- Growing employee opportunities from 1.9 million in 2007 to 2.9 million in 2019, representing a 53.6% growth rate.
- Creating a healthier environment by providing health insurance, paid holidays, and retirement benefits at a higher rate than their White-owned counterparts.
- Latino business owners are more likely to be building businesses with a purpose for the long term — they are twice as likely to report their primary goal as an entrepreneur is to operate a business that can be inherited by their family.
Unfortunately, the pandemic did affect overall revenue and profitability of LOBs. That’s where we come in. We need to offer more support as patrons and consumers of Latino products so they can continue to operate and create long-term businesses that outlast the 5 year average. Luckily, the support has begun for LOBs from large companies, like Google. They are partnering with the US Hispanic Chamber of Commerce to offer Latino-owned attributes in search, maps and shopping, plus new financial support and skills training for Latino business owners and non-profits.
Interesting, a new study finds that both the labor market and the broader economy will be increasingly helped by the growing population of Latino workers as retirement of the Baby Boomer generation commences. This is supported by the 2021 U.S. Latino GDP Report, which shows that Latinos have contributed close to three-quarters of the entire labor force expansion that has taken place since the Great Recession. They are contributing to programs like Social Security, Medicare, Medicaid, and many Veterans’ Administration programs that will be crucial for those retiring. Not only this, but as they become more highly educated, and start businesses with long term goals, they will be critical for the US economy.
As Marlene Orozco, Director of Stanford Latino Entrepreneurship Initiative, stated, “There’s a real sense of resiliency with Latino businesses that we’re uncovering.” The numbers are encouraging for the future LOBs, but they won’t work without our support and patronage in the coming years.
Here’s are nine ways you can support their growth:
- Shop at Latino-owned stores and restaurants in your area and online
- Write reviews so they are more visible in companies like Google & Yelp
- Promote these businesses on social media, in your own business and word of mouth
- Diversify your vendors by incorporating or partnering with LOBs for your business and corporate events
- Support Hispanic Organizations like the League of United Latin American Citizens and non-profits like Fuerza Local (Local First Arizona) and the Raza Development Fund, started the COVID-19 Hope Fund in partnership with Wells Fargo and other local organizations.
- Support local initiatives and events run by and for Latinos
- Network with other LOBs to form a community and create visibility
- Start your own LOB and partner with orgs mentioned to fund your vision
- Teach the younger generations to do the same
For details on organizations in your area, research your local chamber of commerce, small business associations, and local non-profit groups that support LOB’s.
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