Diversity, equity and inclusion are essential to business success in today’s challenging and fast-paced global business landscape. Latinos comprise the largest minority group in the U.S., representing almost 20% of the total population. They also account for a substantial portion of the nation’s economic growth.
Partnering and collaborating with Latino organizations allows both parties to grow, enhance cultural competency, and ultimately, make a measurable difference in society. Today’s post will explore why U.S.-based organizations should partner with Latino-owned businesses and highlight strategies to help you get started.
The Impressive Growth and Resilience of Latino-Owned Businesses in the U.S.
Considering the size of the Latino population in the U.S., their contribution to the national economy is appreciable. Latino-owned businesses (LOBs) generate more than $800 billion annually, and their economic output as a demographic group (businesses and consumers combined) is even more impressive, at more than $2.8 trillion.
The Latino population’s entrepreneurial aptitude is demonstrated in several studies and reports, including an annual report conducted by Stanford, which shows that LOBs substantially outpace others in both payroll and revenue growth. As the fastest-growing small business group, Latino-owned firms are fueling the U.S. economy and are drivers of innovation, while also creating jobs twice as fast as white-owned businesses. In an impressive example of resilience during a time when many companies failed, Latino-owned organizations grew by 25% during the pandemic compared to 9% for white-owned and other firms.
But despite impressive numbers, LOBs are typically underfunded. Though many Latino-run firms have stronger business metrics and gross revenues than white-owned businesses with similar profiles, they experience lower approval rates for financing. Hence, we can conclude that their potential is not yet fully realized. Outstanding gains could yet be achieved with additional support and investment.
All things considered, the advantages of partnering with Latino-led businesses reach well beyond achieving diversity goals. The economic benefits, extended reach, and unique capabilities afforded by partnering with Latino firms could help your organization not only grow but flourish in ways few other initiatives could.
Why Partnering with Latino-Owned Businesses is Good for Your Organization
Extensive data support the myriad of advantages that result from aligning with Latino-owned enterprises.
1. Access to a Bigger and Untapped Market
A significant majority of Latinos are under 34 years old, making them a valuable long-term customer base with considerable potential for increased customer lifetime value. Partnering with Latino-owned organizations helps you tap into new markets, broaden your customer base, and gain a competitive advantage. Furthermore, Latino entrepreneurs and business owners are well-connected within their communities and can promote your brand to a wider audience, boosting brand awareness across cultural lines.
2. Opportunity for Innovation
Partnerships with Latino organizations represent unique opportunities to tap into innovative ideas and concepts. Diverse backgrounds bring new perspectives, extending relevance to previously untapped audiences. Latino organizations have a strong history of creating novel business models that cater to their community’s needs. It’s an invitation to innovation, as you will be aligned with a group that has demonstrated an ability to create and disrupt industries.
3. Enhance Workforce Diversity
Workforce diversity is crucial for any business. Bringing a Latino-led organization into the mix instantly diversifies the workforce, as Hispanic individuals in the U.S. represent multiple cultures, including Mexico, Puerto Rico, Cuba, El Salvador, the Dominican Republic, and several other countries throughout Central and South America. Many of these countries are known for their advanced educational systems and gifted talent, especially in areas like technology. Our nation’s demographics are changing rapidly, and collaborating with Latino-led firms can help you attract and retain top talent, create leadership opportunities, and gain relevance in your market niche while fostering a more inclusive work environment.
4. Cultural Competency and Social Responsibility
Teaming up with Latino organizations is a great opportunity to enhance cultural competency. Latino entrepreneurs often have deep ties to their communities, customs, and traditions, and working with them will help you better understand and cater to the unique needs of the rapidly growing Latino sector. In addition, developing partnerships with Latino-led organizations is an important element of social responsibility, as it highlights your organization’s commitment to equity by providing equal opportunities to a population segment that has historically been systemically marginalized.
5. Foster Economic Growth
Affiliation with Latino organizations ultimately supports the economic growth of the community and the nation as a whole, as is demonstrated by their impressive business success statistics. When you team up with LOBs, you help promote economic sustainability and growth. It’s a way to invest in diversity and expand opportunities to communities that often have limited access to resources.
Getting Started: Partnering with Latino Businesses and Other Ways to Provide Support
If you are considering partnering with Latino organizations, here are some tips to get you started.
1. Make Diversity Part of Your Company Culture
Companies must embrace DEI as part of their internal culture. Doing so facilitates more fruitful partnerships with Hispanic-led businesses. Success is assured when these initiatives are championed at the highest levels of leadership, as it demonstrates a true commitment to change to all stakeholders.
2. Connect with the United States Hispanic Chamber of Commerce
The United States Hispanic Chamber of Commerce (USHCC) offers a Business Matchmaking program connecting procurement professionals in various industries and federal agencies with Hispanic Business Enterprises (HBEs). Submit your request or RFP here.
3. Invest in Hispanic-Owned Organizations
Access to funding is one of the biggest barriers to growth for Latino-owned enterprises according to the U.S. Small Business Administration, but investment can come in many forms. Contracts awarded and financing are more direct, but professional advice, guidance, and advocacy are valuable too.
Work With an Expert in Hispanic Strategy: How Cool & Associates LLC Can Help
Partnering, hiring, and working with Latino organizations offers benefits beyond business transactions. It’s a way to improve representation, strengthen cultural competence, and promote social responsibility while fueling economic growth. It’s an opportunity to tap into new markets, enhance diversity and inclusion, and positively impact society in ways that would not be possible otherwise.
Cool & Associates LLC provides expertise in how to effectively partner with Hispanic organizations and the Latino sector as a whole, by developing a strategy uniquely designed to help you achieve your organization’s objectives.
We work with organizations in both the public and private sectors, and throughout several industries, including but not limited to healthcare, construction, financial services, community development, and education. We provide strategy and consulting services, community outreach, professional development and training, marketing and communications, translation and language services, and operational support to ensure your successful engagement with the Latino population in the US.
Contact us today to get started.
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