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Latinx-owned businesses in the U.S. are growing, but many Latina entrepreneurs face challenges. Check out these tips for business success.
Being a Latina business owner could not have happened at a better time for me. I immigrated to the U.S. in my late teens and spent most of my career struggling to be heard in environments where diversity was low. It didn’t help that I didn’t feel I fit in. But as a woman and a Latina in today’s environment, I feel empowered and supported to pursue my entrepreneurial dreams.
What changed? I believe it’s been a series of big and small events, some of which might seem unrelated initially. Overall, there is a big push by the government and society to support minorities and women. On top of that, members of these groups are making it a priority to help each other.
It gives me great comfort to hear other Latinas say, “the future of U.S. businesses is Latina.” Not because I think we should take over (every group has the same right to own their well-earned share of U.S. markets) but because it boosts my confidence in the power of self-motivation and encouragement.
But what does the business landscape look like today for Latinos?
Latino-Owned Small Businesses Are Growing at a High Rate
The Latino population has become the United States’ largest ethnic minority, constituting over 17 percent of the nation’s total population. Similar growth can also be seen in the Latino entrepreneur community.
Hispanics showed the highest growth in entrepreneurship of any U.S. racial group between 1996 and 2014, according to American Express’ 2018 State of Women-Owned Businesses report. This is excellent news for Latina entrepreneurs.
Latino business owners generated about $500 billion yearly income during the pre-pandemic period and hired 3.4 million people. (The State of Latino Entrepreneurship, 2020).
As we grow in the business arena, more resources are available to support us.
Many Latino business owners reported that they failed due to the inability to access capital and resources. ( The State of Latino Entrepreneurship, 2020)
We also hope to support one another as fellow entrepreneurs by providing advice and resources or being reciprocal customers.
Funding Is Still a Challenge for Latina Entrepreneurs
Many Latinas use what little they have in savings to fund their businesses and most seldom seek outside funding until it’s already too late. This lack of planning and poor cash flow management can result in business failure. As their personal funds diminish, they must apply for loans, often denied or with high-interest rates—improper funding results in slow or no growth and business shutdown.
It’s essential that Latino entrepreneurs seek advice from the many free and accessible resources available to them as soon as they think of starting a business. It’s also important to continue doing so through the early stages of the business. As they plan for growth, they should engage appropriate professionals and advisers who can assist them during the growth stage.
Latinos Have Entrepreneurial Spirits
Latinos are quite the entrepreneurial type in their countries of origin. This often comes out of necessity, as jobs are not necessarily the order of the day in our countries. That entrepreneurial spirit frequently translates to Latinos starting businesses when they immigrate to the U.S.
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But the problem is that their common approach is “let’s jump in the water and see what happens.”
It’s the philosophy of learning to swim when you see the shark coming. This might work in some cases, but it’s a risky approach in business.
Programs that educate Latino entrepreneurs on proper business management at all stages are key to the survival of their businesses. There is a lot of effort being made to create programs that support minority- and women-owned businesses. However, I notice that many Latinas are not aware of these programs. As much focus should be given to raising awareness as it is to create them.
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Looking Toward the Future for Latina Entrepreneurs
Overall, the outlook for Latina business owners is positive. There is still a lot to be done to provide the right support, training, and funding to improve the success rates for Latina-owned businesses. Latina entrepreneurs should seek training and capital to create and grow their businesses.
Meanwhile, government agencies should continue to implement support structures and resources for them. Making these programs known to the community is also key. Increasing publicity and accessibility of these programs is also crucial.
Last, it’s crucial that Latino business owners support each other by mentoring one another, cross-selling, and being ambassadors for fellow business owners.
In the monthly newsletter, I send out every month, I share relevant and useful resources for business owners. Take a look at the latest and are still effective. Join our newsletter for tips, deadlines, grants, and other resources for you and your business.
The original article was published on Centsai. It has been updated as of June 23rd, 2022.
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