Make no mistake – business is booming for Hispanic entrepreneurs. According to research, the number of Latinx business owners grew 34 percent over the past 10 years, compared to just 1 percent for all other business owners in the United States.
In addition, Latinx business owners contributed about $500 billion to the economy in annual sales.
(As an aside, we understand that Hispanic and Latinx aren’t synonyms, but in an effort to be inclusive to those groups, we’ll use these descriptors throughout the piece.)
However, Latinx businesses have faced their share of unique challenges during and in the aftermath of the COVID pandemic. A recent Stanford study indicates that a helping hand can go far in empowering small businesses–especially Latinx businesses–to survive and thrive in difficult market conditions. From the sample of Latinx businesses reviewed, researchers found those businesses had “fewer resources to weather the ongoing storm”–that is, less cash on hand and a lower PPP loan approval rate, about 3% compared to 7% for white-owned businesses. It also found, however, that 82% of SLEI Education Scaling Program alumni received PPP funding compared to 18% of scaled Latino-owned businesses and 28% among scaled white-owned businesses.
That means, a little help can go a long way in empowering Latinx entrepreneurs to make a difference in their communities. We at Clover want to empower Latinx merchants to build and grow thriving businesses. So, we’ve collected these handy resources and tips for Hispanic business owners looking for a little extra help and advice.
Money is critical for every entrepreneur, and for Latinx business owners, building a strong financial base can mean the difference between success and failure. Without ready access to loans and other financial support, many small business owners wind up using their own money in their ventures, making it even tougher to grow their businesses. Fortunately, Hispanic entrepreneurs have several avenues to explore that provide access to loans, grants, and other monies that can help stabilize or grow their businesses.
Take a look at these 5 types of resources to help boost capital:
With enough drive and determination, you can launch a business. Once it’s up and running, however, it can be hard for Hispanic entrepreneurs to find someone to answer questions and provide a sounding board for advice.
This gap in mentorship and networking is slowly being filled by groups and individuals eager to help the next generation of Latinx business owners. Take these, for starters:
More consumers are shopping more intentionally to support diverse businesses–especially businesses of color and Hispanic-owned businesses. That helps strengthen local economies, create job opportunities, close the racial wealth gap, and celebrate diverse cultures. The great news is that over the past year Latino-owned businesses reported growth of around 15%. And maintaining that level of growth is critical for long-term success.
On the flipside, many merchants would like to insert themselves into the supply chain or ecosystem of Hispanic-owned businesses, but they may not know where to start.
Consumers can tap these resources to help support Hispanic-owned businesses:
Merchants can also help by:
And, we at Clover now offer our Back2Business program to help small business owners–especially Latinx and other minority-owned small businesses–get back on their feet and back to business with grants, mentorship, and other support.
This information is provided for informational purposes only and should not be construed as legal, financial, or tax advice. Readers should contact their attorneys, financial advisors, or tax professionals to obtain advice with respect to any particular matter.
Sign up and learn more about Clover.