It’s Small Business Week! This week serves as a timely reminder of the significant contributions made by small businesses to the economy of our great country. And within this distinct landscape, there’s a subset of the small businesses that we want to highlight: the Latino owned small businesses.
Why Supporting Small Businesses Matters
Small businesses serve as the backbone of the U.S. local economy, and Hispanic entrepreneurs play a crucial role in this setting. Latinos exhibit a higher likelihood of venturing into business ownership compared to their white counterparts. The growth trajectory of Latino-owned businesses is nothing short of remarkable, surpassing the establishment of businesses by other demographic groups, Latino/a-owned businesses grew at a median rate of 25% from 2019 to 2022, while white-owned businesses grew 9% over the same period. This rapid expansion stands as a testament to the entrepreneurial spirit and resilience embedded within the Latino community.
These businesses are not mere economic entities; they are engines of progress, cultural bridges, and determination. Their collective contribution—nearly 5 million Hispanic-owned businesses adding over $800 billion annually—fuels economic vitality, job creation, and community development.
Navigating Challenges: The Path for Latino-Owned Small Businesses
Despite their significant contributions and rapid growth, Latino entrepreneurs continue to navigate a landscape riddled with systemic challenges that can stifle their potential. Access to capital remains a critical hurdle, with many facing difficulties in securing loans and investments that are readily available to their white counterparts. This disparity in funding is not just about numbers; it’s about the ability to innovate, expand, and compete on a level playing field.
Empowering Latino Entrepreneurs: Overcoming Hurdles to Success
The struggle extends to the domain of corporate and government procurement and contracting, where Latino-owned businesses often find themselves at a disadvantage. Not only are the awarded contracts smaller, but bidding and activation process tends to be lengthy- and financially burdensome- which can disrupt cash flow and planning. This not only affects the immediate financial health of these businesses but also long-term growth and scalability.
Language barriers further compound these issues, as non-English speaking Latino entrepreneurs may find it challenging to engage with financial institutions and procurement entities to transact needed loans and/or contracts.
Strategies to Support Latino-Owned Businesses
Supporting Latino-owned businesses is a vital step towards fostering a diverse and robust economy. By choosing to stand by these enterprises, we not only celebrate the rich cultural heritage they bring to the marketplace but also contribute to their growth and sustainability. Simple steps like purchasing from diverse vendors, including Latino owned businesses; outreaching and promoting contracts/bid opportunities in Hispanic-dense settings, such as Hispanic or minority chambers of commerce and ensuring that the procurement or supplier diversity officers are properly trained on culturally competent communication and engagement.
Building Bridges: Collaborating with Latino Entrepreneurs
Engaging with Latino entrepreneurs, understanding their unique challenges, and advocating for their needs can lead to more equitable access to opportunities and resources.
Collaborations and partnerships can amplify their voices and presence in various industries. Financial support through investments, grants, and loans is crucial, as many Latino-owned businesses face barriers to traditional funding sources. Recognizing the importance of cultural nuances in business practices can also improve interactions and transactions with these businesses.
Lastly, consistent support beyond designated heritage or cultural commemorative periods ensures that Latino-owned businesses thrive all year round, contributing significantly to our local and national economies.
Community Engagement and Economic Empowerment
Building strong relationships within the community is fundamental for the success of Latino-owned businesses, fostering trust, collaboration, and a sense of belonging.
By engaging with fellow entrepreneurs, and community organizations like the Maryland Hispanic Chamber of Commerce (MDHCC), Hispanic Chamber of Commerce of Montgomery County (HCCMC), Latino Economic Development Center (LEDC), Southeast CDC, Hispanic Chamber of Commerce of Prince George’s County, and the Salvadoran American Chamber of Commerce, Latino business owners access valuable resources, mentorship, and potential customers.
These organizations underscore the role of community networks in supporting business growth. Empowering young Latinos to become entrepreneurs ensures a sustainable legacy through mentorship, education, and exposure to business opportunities.
Supporting Latino-owned businesses creates a positive economic ripple effect, as they hire locally, pay taxes, and reinvest in the community, while also enriching the cultural fabric with unique products, services, and experiences, according to research by the Association of Latino Professionals for America (ALPFA).
Empowerment Through Support for Latino-Owned Small Businesses
Supporting Latino-owned small businesses is not just about being kind, but rather about sustainable support that empowers and drives the economy.
Hispanic entrepreneurs play a pivotal role in our local economies, contributing to job creation and community development. Despite their significant contributions, they face systemic challenges such as limited access to capital and language barriers. By choosing to support Latino-owned businesses, we celebrate diversity and contribute to their growth and sustainability.
Collaborations, partnerships, and financial support are essential in leveling the playing field and ensuring equitable access to opportunities. As Small Business Week unfolds, let’s pledge to support Latino-owned businesses not only this week but throughout the year.
At Cool & Associates, LLC, we can help with training, community engagement, and helping your organization communicate effectively with Latino businesses in a culturally engaging manner.
Image: ©Arturo Peña from Getty Images Signature
