The Latin-owned corporate segment is the fastest growing in the US small business ecosystem. It’s grown 34% over the past 10 years, compared to just 1% for all other small businesses.
This is one of the key findings of the 2020 State of Latino Entrepreneurship Report, a study by the Stanford Latino Entrepreneurship Initiative (SLEI) of the Stanford Graduate School of Business (GSB) in collaboration with the Latino Business Action Network (LBAN).
The report said that without the growth in the number of Latino businesses, the total number of small businesses in the US would have decreased between 2007 and 2012. Latinx entrepreneurs set up companies faster than the national average in almost all industries. Latin-owned companies have revenues growing faster than white-owned companies.
The State of Latin American Entrepreneurship 2020 report examines data from 3,500 white-owned companies and the same number of Latin-owned companies. It also includes time series pulse survey data for March, June, and September.
Another finding is that Latin American-owned companies are significantly less likely than white-owned companies to have credit applications approved by national banks, even though comparable metrics are available for various key lending criteria.
Women entrepreneurs, on the other hand, are still the most vulnerable, especially in light of the COVID-19 pandemic, the impact of which puts a special focus on this year’s report. Women-run businesses are hardest hit by the pandemic, for both Latin American and white-owned businesses.
The report will be presented virtually on January 29th at the sixth annual State of Latino Entrepreneurship Forum. The panel will be led by Latin American business executives who will discuss their on-site experience of keeping business operations going amid the pandemic.
The expected panelists are David Favela, CEO and Founder of Border X Brewing LLC, Eric Donnelly, CEO of Capital Plus Financial (CDFI), and Mercedes O. Enrique, President of CMS Corporation. The moderator is Rosa Santana, founder and CEO of the Santana Group.
