A recent study revealed that immigrants, including Latinos, are starting businesses at an impressive rate, even exceeding the national average. This is a powerful trend highlighting the entrepreneurial spirit within our community.
Building a business creates a path to financial success, especially for immigrants who might face limitations in the traditional job market. These new businesses also play a key role in propelling the U.S. economy forward.
The analysis, conducted by UCLA economist Robert Fairlie, found that Latinos have the highest rate of new business creation compared to any other racial or ethnic group in the US. In 2023, a staggering 600 out of every 100,000 Latinos launched a new business, compared to just 280 out of 100,000 Americans.
There’s more than just necessity driving this trend. Gustavo Suarez, founder of Trez (the first payroll platform focused on Latino businesses), emphasizes the inherent entrepreneurial spirit within the Latino community. Immigrants often arrive with a strong desire to build a better life and create a positive impact, which perfectly aligns with the characteristics of a successful entrepreneur.
Despite this positive momentum, Latinos and other communities of color continue to face hurdles in accessing capital at the same rates as white counterparts.
But there’s progress! The good news is, the number of federally-backed loans to Latino-owned small businesses reached a record high of $3 billion in 2023, doubling in just two years according to the U.S. Small Business Administration.
Latino-owned businesses are a significant force in the U.S. economy, contributing a whopping $800 billion annually. Furthermore, a recent Stanford Latino Entrepreneurship report found that Latino businesses experienced a median growth rate of 25% between 2019 and 2022, compared to just 9% for white non-Hispanic owned businesses.
This data paints a clear picture: Latinos are a driving force in American entrepreneurship. By fostering this trend and ensuring access to resources, we can empower our community to achieve incredible success.
Listen to what our hosts have to say here: https://www.youtube.com/watch?v=osfnKN5hHV4
