A new study by the Stanford Latino Entrepreneurship Initiative found that while the total number of U.S. businesses declined between 2007 and 2012, the number of Latino-owned businesses spiked by 46%. Latinos are driving small business growth in America with nearly one in four Latino households owning a business. That’s the good news. The challenge is that the overwhelming number of Latino-owned businesses start small and stay small. In fact, only 3% of Latino-owned businesses generate at least $1 Million per year in gross revenue. Companies typically can scale if they have knowledge and capital to do so. One of the more interesting findings in the study is that 77% of Latino businesses that generate more than a million dollars per year are part of a business organization as compared to only 35% for smaller firms. Networking and mentorship seem to be the key to business growth in the Latino sector. This should not be a surprise. As a young entrepreneur in the mortgage business, I used to say that I didn’t have an uncle who owned a community bank. Ernie Reyes and I formed NAHREP in part to address that issue by creating a platform where Latino entrepreneurs could congregate, exchange ideas, and form partnerships. That original idea is still part of our mission statement today.
I think most Latinos would agree that at our core, we are a generous people. If a member of our family is in need, Latinos as a rule, won’t hesitate to help financially. Family is central to Hispanic culture: our generosity has few limits. Maybe that explains why when it comes to making political donations and writing checks in support of actual philanthropic activities, Latinos come up short….When I interviewed Barack Obama last year at NAHREP at L’ATTITUDE, I pressed him about politicians not prioritizing issues that are important to Latino voters, he politely pushed back by saying…
We hear frequently how Latinos are not a monolithic community. In other words, we are not all the same. We come from different countries, have a variety of political views, and even eat different foods. I get all of that, but I also think focusing constantly on our differences versus our similarities undermines our political and economic power as a community...
This might be my most provocative blog in a while. Let me first state that I am happily married to a beautiful gringa. My kids are half- White and some of my best friends throughout my life have been White, so don’t let the title of this blog throw you.