Latina entrepreneurs are playing an increasingly vital role in the U.S. economy, leading businesses across industries and driving economic growth at unprecedented rates. As one of the fastest-growing entrepreneurial demographics, Latinas are launching businesses at a rate six times faster than any other group. Their impact extends beyond business ownership—Latinas are creating jobs, generating wealth, reshaping industries, and contributing to local and national growth. They are not only business owners but also job creators, community leaders, and economic drivers.
As Women’s History Month and International Women’s Day highlight the contributions of women in business, it’s important to recognize the impact Latina entrepreneurs have made despite limited access to capital and systemic barriers.
Growth of Latina-Owned Businesses
Latina-owned businesses are expanding rapidly. According to U.S. Census Bureau, the number of employer businesses owned by Latinos increased by 8.2% from 2020 to 2021, outpacing the national average. Within this surge, Latina entrepreneurs account for a sizable portion of new business formations.
Research from the Stanford Latino Entrepreneurship Initiative shows that Latino-owned businesses employ more than 3 million people across nearly 350,000 businesses. Latina entrepreneurs are a key part of this expansion, driving growth in key industries such as retail, healthcare, and professional services, overcoming funding gaps and limited resources to build sustainable, high-impact businesses.
Economic Impact of Latina Entrepreneurs
Research from the 2024 U.S. Latino GDP Report estimates that the Latino GDP exceeds $3.2 trillion, making it the fifth-largest economy in the world. Latina entrepreneurs are a driving force behind this economic momentum, generating jobs and creating pathways to financial independence for their families and communities.
Many Latina-owned businesses prioritize hiring from within their communities, contributing to workforce development and economic stability. Their businesses serve as both economic engines and cultural pillars, strengthening local economies and supporting the broader workforce.
Addressing Barriers to Growth
Despite their impressive growth and success, Latina entrepreneurs face persistent challenges, particularly in securing funding. According to research from the Stanford Latino Entrepreneurship Initiative, Latina business owners receive only 39% of the funding they request from banks, compared to 55% for businesses owned by white women and 65% for those owned by white men. Additionally, 17% of Latinas report difficulty accessing credit or loans—nearly double the rate reported by white women or Latino men. These financial barriers limit their ability to scale operations, forcing many to rely on personal savings or alternative funding sources.
To address these disparities, initiatives such as Latino-focused business incubators, mentorship programs, and access-to-capital initiatives are helping bridge the gap. Organizations like the U.S. Hispanic Chamber of Commerce and the Latino Business Action Network, provide critical networking opportunities and funding resources for Latina business owners. The Maryland Hispanic Chamber of Commerce, in particular, serves the Hispanic business community by promoting business opportunities, workforce development, and providing resources to foster growth and prosperity.
A Latina Entrepreneur’s Success Story
We would be remised to not showcase our own origin story when discussing Latina-entrepreneurship! In 2011, Veronica Cool founded Cool & Associates LLC with a vision to bridge the gap between businesses, nonprofits, government agencies, and the Latino community. Her journey as a Latina entrepreneur has been marked by perseverance, strategic growth, and a commitment to empowering others. In a candid interview, she shares what it truly means to be a business leader—discussing the challenges she has faced, the lessons she has learned, and the impact she hopes to make.
A Future Powered by Latina Entrepreneurs
As Latina entrepreneurs continue to grow, businesses and organizations can play a role in fostering their success through:
- Providing access to capital through grants, venture funding, and financial literacy programs.
- Creating mentorship opportunities that connect Latina business owners with experienced industry leaders.
- Developing supplier diversity programs that include Latina-owned businesses in corporate and government contracting opportunities.
- Advocating for policies that support minority and women-owned businesses at the local and national levels.
Latina entrepreneurs are transforming industries and shaping the future of the U.S. economy. Investing in their success is not just about business—it’s about sustainable economic impact.
As a Latina-led firm, we are committed to empowering our clients and partners through strategic consulting, technical assistance, and workforce development. Contact us today to explore ways to collaborate.
Image:
Young woman preparing a package for delivery to clients. Online clothing store by @filadendron from Getty Images Signature
Related Blogs:
– Latino Businesses: A Vital Force in the U.S. Economy
– The Latina Impact: Driving Economic Growth and Resilience in America
– Latina Equal Pay Day: Bridging the Wage Gap and Advancing Economic Equality
