2018 State of Latino Entrepreneurship Forum Part 1

TL;DR

Latino-owned businesses face challenges in scaling and accessing external funding, but there are positive trends, such as higher rates of business creation and growth among Latina and immigrant entrepreneurs.

Transcript

[MUSIC] Buenos dias. >> Buenos diaz. All right, [LAUGH] I like that. Hi, my name is Victor Arias. And I am the Chairman of the Latino Business Action Network, which is one of the collaborators for this event. And I also had the privilege as serving as a trustee of Stanford from 1996 to 06. [FOREIGN]

[LAUGH] >> I grew up in El Paso, Texas. Anybod... Read More

Key Insights

• 🙃 Latino-owned businesses face challenges in scaling and accessing external funding, primarily from national banks.
• 🙃 Latina entrepreneurs are making significant contributions to the growth of Latino-owned firms but face funding ceilings.
• 🥳 Immigrant millennials who arrived in the US before their 16th birthday show promise in scaling their businesses.

Questions & Answers

Q: Why do Latino-owned businesses face challenges in scaling and accessing external funding?

One reason is the lower rate of bank loan access from national banks compared to other demographic groups. Latino entrepreneurs also report not feeling qualified for external funding, which may limit their options. Additionally, the lack of necessary materials, such as business plans, hinders their ability to obtain funding.

Q: How are Latina entrepreneurs faring compared to other demographic groups?

Latina entrepreneurs are experiencing significant growth in the number of businesses they own. However, they tend to have smaller businesses and face funding ceilings. They also report feeling less qualified to access funding from financial institutions, which may impact their ability to scale their businesses.

Q: What are some positive trends in Latino entrepreneurship?

Latino entrepreneurs have a higher rate of business creation and growth compared to other demographic groups. Immigrant millennials who arrived before their 16th birthday also show promise in scaling their businesses. Additionally, Latino businesses have a higher rate of international clients and customers outside the US, indicating their global mindset and potential for expansion.

Q: Are there specific regions where Latino businesses are thriving?

While Latino businesses are concentrated in Latino-dense states like California, Texas, Florida, and New York, there is growing entrepreneurship in the South and Midwest regions. This suggests that Latino businesses are establishing themselves in new entrepreneurial gateways across the country.

Summary & Key Takeaways

• Latino entrepreneurs own businesses at a lower rate and have lower revenue levels compared to the overall population.

• Bank loans from national banks are accessed at lower rates than other funding types, with government funding being the least accessed.

• Latina entrepreneurs are on the rise, with significant growth in the number of Latina-owned firms. However, they face funding barriers and feel less qualified to obtain external funding.

• Immigrant millennials who arrived in the US before their 16th birthday have a high representation among skilled firms, suggesting their success in scaling businesses.

• Latino entrepreneurs have a higher rate of international clients and customers outside the US.