If you weren’t paying attention this Hispanic Heritage Month, it’s time for a heads up. The latest research from the Stanford Latino Entrepreneurship Initiative shows that Hispanic owners are the “fastest growing segment of the small business ecosystem.” What are we all doing to ensure these owners’ continued success?
Hispanic small businesses are growing
First, the good news: Hispanic businesses are growing! According to our data, 61% of Hispanic-owned businesses are in the scale stage in 2021, up by 17% compared to last year. Hiring has followed apace with 89% of Hispanic businesses planning to add employees this year, which is almost double the figure we measured in 2020.
Marketing and brand awareness are big focuses
A key part of our survey process is understanding the emerging challenges faced by small business owners. Among Hispanic entrepreneurs, 12% said their biggest challenge in Q3 2021 is marketing –an 80% quarter-over-quarter increase that stands apart from other demographics.
Still, Hispanic owners are less optimistic than their peers
The growth we measured hasn’t always translated into optimism. In fact, 22% of Hispanic owners told us they predicted business in 2021 would be the same or worse as 2020. That’s compared to 17% of owners from other demographics.
Capital access should remain our number one priority
No matter how you slice the data, small business owners of every demographic tell us that access to capital is their number one challenge. Hispanic owners, like all New Majority entrepreneurs, have a harder time accessing bank loans, business credit, and venture capital compared to their white counterparts.
Write a Reply or Comment
You should Sign In or Sign Up account to post comment.