This February is Social Justice Month. As such, I wanted to take the time to highlight something pretty close to home for me, and that is Latin-owned Businesses!
According to the United States Census Bureau, there are now 4.65 million Hispanic-owned businesses, and they represent 14% of the 33 million total U.S. businesses. The growth that they have achieved over the past few years continues to exceed the growth of other businesses in the U.S. In fact, Hispanic businesses grew 40.2% between 2012 and 2018 - much faster than other U.S. firms that grew 18.8% in the same period. Today, about 1 out of every 7 companies is run by a Hispanic American.
However, despite the fact that Latinos are excellent entrepreneurs, it seems that they have a tough time starting and running a business. According to a Stanford study, only 6% of Latinos' money comes from commercial loans, while 70% comes from personal savings.
In comparison with other U.S. businesses, Hispanic-owned small businesses:
Are 30% more likely to be home-based
Tend to involve multiple employees in purchasing decisions
Rely on “neutral” third-party social media apps, blogs and industry websites when researching potential purchases
Often use Facebook, YouTube and Instagram to research suppliers
Look for suppliers that offer superior customer service such as flexible contracts and online chat sales support, being that there may occasionally be a language barrier
Even with so much against them, there’s still a huge potential for Latin-owned businesses to strengthen the American economy. If Latino owned businesses grow at the same rate as the U.S. average, they could contribute $1.4 trillion to the U.S. economy. This could potentially add almost 8% to the $18 trillion U.S. economy.
Nothing is more exciting than potential! As French-Cuban American diarist, Anaïs Nin once said, “The day came when the risk to remain tight in a bud was more painful than the risk it took to blossom.”