Whilst the United States economy is taking a hit due to the recent situation around the world, there is positive news to be found.
Latino small business owners are thriving in the United States at present, becoming the fastest-growing group of entrepreneurs nationwide. A Stanford University study found that across the last decade, the number of Latino small business owners grew by 34%. That is in sharp contrast to the national statistic for business owners, which grew by just 1%.
Sadly, the situation affecting the rest of the country has also been hitting these new businesses hard, with 86% of Latino small business owners reporting significant economic impact through the course of 2020. That comes on the back of a year where the same demographic contributed nearly $500bn in tax dollars to the economy. Whilst the United States Government is currently curbing import agreements with Latin American countries to stimulate the wider economy, it is ironically the small business owners from the same group looking likely to help keep the tax money coming in.
One such Latino business owner, Luciana Gomez, spoke to CNBC about her experience opening Café Victoria in Dallas. “I had a passion and I started there,” said Gomez. “I traveled to Europe to find concepts, and find things I wanted to explore, see and bring back here.”
She is one of just 23% of Latino small business owners who have applied for a federal loan in the wake of recent restrictions, and despite problems, she also reveals why Latinos appear to be resilient during these challenging times.
“I’ve been going back and forth with the bank and I’m just shocked at how long it’s taking,” she added. “As Hispanics, our currency is a little more resilient and we’re more culturally open to dealing with crisis. We keep the motor running until we can drive again.”
Whilst the current situation is troubling, once the world emerges from the current gloom it seems Latino business owners will continue to grow and thrive within the United States.
Opening a small business is relatively easy, which means anyone with an idea, a bit of motivation and of course, a little capital can make their ideas a reality. ZenBusiness outlines that there are five key steps to starting an LLC in the United States, all of which are relatively straightforward. That makes it a land of opportunity for entrepreneurs of all nationalities. Also, a culturally diverse nation such as the United States offers many different core customer bases for a wide range of ideas.
Why though, are Latino business owners enjoying such success? Jerry Porras is a professor of organizational behavior and change at Stanford University, the body that conducted the recent study evaluating responses from more than 5,000 Latino business owners across the country. He believes the significant difference is cultural.
“Latinos as a culture gravitate toward starting businesses and being their own boss, creating something for their families,” he told the Guardian. “Another important ingredient is that a lot of Latino businesses are being started by immigrants, who are hungrier and more passionate about what they’re doing and want to have an impact on their own financial wellbeing. Being an entrepreneur is a powerful way to do that.”
The economic future might not be clear in the United States, or indeed the wider world, but at least the report’s findings deliver good news for the Latino small business owner and prospective entrepreneurs of the United States