Undoubtedly, the Latino population in the United States is a force to be reckoned with. According to the study Latino Business Ownership: Contributions and Barriers for U.S.-born and Immigrant Latino Entrepreneurs written by Robert W. Fairlie, Immigrant Latino entrepreneurs generate $36.5 billion in business income that, adds to the $26 billion US-born Latinos in the country.
Yet, there are many impediments for this minority to achieve business ownership goals and scale. Analyzing and determining ways to revert this situation is essential since Latino businesses are the biggest growing group, including national white-owned companies.
It would be in everyone’s interest to see some of these reasons for failure erased from the conversation since, as Latino businesses grow, multiple industries do as well; there is more employment and better economic conditions in general with structures like ITIN loans offered by companies like Camino Financial.
Barriers to being broken
Conditions aren’t that different today for Latino businesses than 20 years ago; some of the same barriers have been at play for a long time. These are some of the things that make these businesses fail.
Lack of experience
This applies particularly to the younger Latinos who haven’t had business or employment opportunities to teach them how to become entrepreneurs. A leveled opportunities ecosystem would allow them to gain the experience to build and run a successful business that will create new opportunities for the next generation.
Lack of wealth
It’s unsurprising that, with lower income, Latinos can’t build up savings to open their own business. In these cases, the priority becomes hot meals and a roof to thrive under, but not independence. For these situations, ITIN loans were created. So people with low income can achieve their dreams.
Latino education tends to be lower than other population groups. This directly affects their ability to create a new company and the capacity to run it. This includes the language barrier that cripples Latino’s chances. Therefore, the solution can be accessed through capacitation and funds to continue the education to give the owner new tools for a successful business.
It’s safe to say that racism and general cultural discrimination reduce the chances to build and scale a successful business. Latino role models and success cases should be taught and disseminated to turn the conversation around. This will help inspire new people from different generations and create consciousness about the importance of Latino business to the national economy.
Access to financial capital
Another thing that comes in the way of Latino business success is the reduced access to funds to invest in a company and, in a higher sphere, into venture capital. The creation of ITIN loans and other structures like this is the way to ensure this minority has access to much-needed money.
If you are part of this struggling group, find support from the different foundations and companies that see the value of Latino businesses and are willing to bet on them. If you are not, spread the word about the importance of these kinds of companies to the economy.
Be ready to leave these failure reasons behind and become a successful case. Remember that you need to be well advised to have your papers in order so you have the drive to open or grow your business and have the means to make it so. A lawyer specializing in Latino procedures can help you with knowledge and experience that you can take advantage of.