With major retailers cutting diversity commitments, Latino business owners are forging new paths to success.
The co-founders of a company that makes beauty products tailored for Latina skin tones no longer aspire to get their line into national retail chains. A duo behind a jigsaw puzzle company celebrating Latino culture is considering whether to introduce more generic imagery to expand their customer base.
Businesses like Belleza Latina and Rompecabezas de Cultura are among the many Latino-owned companies reassessing their strategies as major U.S. corporations roll back their diversity, equity, and inclusion (DEI) initiatives. These efforts, which gained momentum following nationwide conversations about racial and social equity, now face an uncertain future as political and economic shifts reshape corporate priorities.
Some Latino entrepreneurs worry that partnerships formed under past DEI commitments may disappear, while others are focusing on new ways to connect with their communities and sustain their businesses.
Ana López and Diego Rivera founded Rompecabezas de Cultura in 2020, inspired by a lack of representation in the puzzle industry. Their company transforms Latino art into high-quality jigsaw puzzles, celebrating everything from vibrant murals in Los Angeles to traditional folklórico dancers. In 2022, they secured partnerships with major retailers, bringing their puzzles to online platforms and select storefronts.
However, with corporate DEI programs under scrutiny, the duo is reevaluating their approach.
“We have to think about whether these retailers will continue supporting our brand,” López said. “Do we adjust our designs to fit a broader audience, or do we double down on our cultural storytelling?”
Similarly, Belleza Latina, a cosmetics company specializing in products for Latina skin tones, has faced challenges as the retail landscape shifts. Co-founders Sofia Martínez and Javier Hernández initially aimed to launch their line in national stores but have since turned their focus to direct-to-consumer sales and partnerships with Latino-owned boutiques.
“Rather than waiting for big retailers to come knocking, we’re leveraging social media and community-driven events,” Martínez said. “Our customers want authenticity, and we can deliver that directly.”
The rollback of DEI initiatives by major companies like Target and Walmart has caused uncertainty for many Latino entrepreneurs. While these programs once opened doors for minority-owned businesses, some experts argue that true economic success must come from self-sustaining community support.
“There’s no denying that DEI efforts created opportunities,” said Dr. Ricardo Méndez, a business professor at the University of California, Los Angeles. “But the key for Latino entrepreneurs now is to build strong, independent ecosystems where success doesn’t rely solely on corporate partnerships.”
For some, this means turning to alternative distribution channels. José Ramos, founder of Orgullo Café, a premium coffee brand highlighting Latino coffee growers, has expanded into Latino grocery stores and local farmer’s markets instead of big-box retailers.
“Latino businesses thrive when we support each other,” Ramos said. “We can’t depend on corporate trends. Instead, we focus on connecting directly with our customers.”
Resilience and Adaptation
Despite these challenges, many Latino founders remain determined to push forward. Carolina Vargas, founder of Aroma de Casa, the first Latina-owned candle brand in a major beauty retailer, has adjusted her approach by fostering strong community ties and expanding partnerships with independent stores.
“There’s always a way forward,” Vargas said. “Our culture is about resilience and reinvention. If one door closes, we build our own.”
While corporate diversity commitments may fluctuate, the passion and drive of Latino entrepreneurs remain constant. Many are finding new ways to grow their businesses, ensuring that Latino voices and culture continue to thrive in the marketplace.
As Méndez puts it, “Success isn’t just about gaining a seat at the table—it’s about creating our own.”
