News Americas, NEW YORK, NY, Weds. July 28, 2021: Latinos are one of the most important communities in the United States; in the last ten years, their representation within the total population of the country increased from 16% to 18%, according to figures from the Pew Research Center. As of 2019, the average age of this group is 30 years old, just into the most productive range, according to scientific studies.
The more than 60 million Latinos living in the United States are looking for better economic and social conditions. One of the areas where they have found the possibility to develop is through entrepreneurship that allows them to achieve better living conditions. Currently, there are approximately 4.6 million Latino-owned businesses, according to information from the U.S. Small Business Administration.
Despite these numbers, Latino businesses are mostly small; the average revenue of each Latino business is 1.2 million, considerably less than that of white-owned firms that reach 2.3 million dollars. One of the main reasons for this disparity is the lack of access to financing for Latinos. Fortunately, there are financial products such as ITIN loans that allow them to obtain capital, even if their immigration status does not allow them to apply for a social security number.
5 Challenges for Latinos as business owners
Staying afloat through the pandemic
As for any company, regardless of the population sector, the main assignment in these times is to stay in operation. Adapting to current trends, such as digital transformation, focusing on the needs of consumers, and generating loving relationships with your customers, all of these aspects are of utmost importance to emerging stronger from the health crisis.
To consolidate the needs of businesses, a good alternative is to approach companies like Camino Financial, which offers ITIN loans for business owners who are not candidates for financing in traditional banking institutions.
Job Generation
Hiring Latino workers, offering competitive salaries and better working conditions, will allow members of the community to improve their standard of living, as well as access to education, security, and health care for their entire family. The wage disparity is a task that will take time to eradicate, but it can start with Latino businesses themselves.
Share knowledge
It is the responsibility of business owners to share knowledge with upcoming Latino entrepreneurs. Advice on topics ranging from establishing a company, necessary documentation, suppliers, types of financing, sales strategies. The more Latinos are part of the formal economic engine in the United States, the more consumption will be generated among the same community.
Constant innovation
Innovation refers to the improvement of production and administrative processes. It is about making any business more efficient and therefore more competitive in any market. As well as analyzing strategies and objectives to be more practical, save time, and above all money, that is the true innovation. There is always a simpler way to do things without sacrificing quality.
Participate in more sectors
According to Biz2Credit’s data, Latino businesses are highly represented in industries such as Accommodation and Food Services (19.6%), Services (16.3%), Construction (14.4%), Retail Trade (13.3%), and Transportation and Warehousing (6.9%). It is a priority within the medium-term objectives of Latinos to increase their participation in sectors such as health, education, and technology, so they will be part of the most important trends in the coming years.
According to Jerry I. Porras, Lane Professor of Organizational Behavior and Change, for Latinos to acquire a more relevant role in the U.S. economy, it is necessary that banks and financial institutions facilitate access to financing. It is important that the authorities are responsible for verifying that the criteria for granting financial products to Latinos are met according to the norm.
In this way, the next Latino entrepreneurs will be able to access all kinds of financial products in a simple way, just as they do today with specialized services such as ITIN loans. It does not seem a simple task, but it is undoubtedly a conquest that millions of Latino entrepreneurs are achieving, hand by hand with their successful companies, generating a good reputation for the community.
