Latinos are the main workforce in the United States. Their cultural, historical and social contributions are reflected in every corner of the country and their representation has a significant economic impact.
Until 2018 the total economic output (or GDP) represented 2.6 trillion dollars. This means that, if Latinos in America were a country, its GDP would rank eighth worldwide, according to the 2020 LDC U.S. Latino GDP Report.
Latino owned businesses had an average revenue growth of 14% by 2019, according to the Stanford Latino Entrepreneurship Initiative. But currently, 31% of these businesses are at risk of closing due to Covid-19, according to information from McKinsey & Co.
The lack of access to financing in this crisis is one of the most relevant reasons why Latino owned businesses are in a state of uncertainty. Not all businesses can apply for a credit and only some financial institutions – such as Camino Financial – offer small business loans for minorities that are truly accessible.
Facts you didn’t know about Latinos in the US
Latinos are a substantial part of public life in the United States; they are entrepreneurs, voters, politicians, consumers and above all, they generate a large part of America’s cultural legacy. To highlight their importance, we have prepared a list of 5 things you didn’t know about Latinos in the US, according to the L’ATTITUDE initiative, a national platform that showcases the contributions of U.S. Latinos.
1. By the end of 2020, the purchasing power of Latinos is projected to exceed $1.7 trillion. With the changes in their consumption habits brought about by the pandemic, the race gap could narrow, at least on the economic aspect.
2. In five years Latinos will represent 30% of all public-school students. Education has become relevant for the new generation of Latinos in the US, 83% of voters in the 2016 election considered education as a factor in their vote.
3. In the last decade Latinos created about 4.3 million new businesses. This figure is a majority percentage of all businesses in the United States. If this trend continues and access to small business loans for minorities improves, outreach will be much higher.
4. Latino owned businesses with employees generate nearly 3 million jobs in the United States. A characteristic feature of Latinos in the U.S. is support among the community itself. As Latino owned businesses continue to emerge, the number of jobs for people of Hispanic origin will continue to rise.
5. The number of Latinos in the United States is 58.6 million, 18% of the total population. According to projections, this percentage will increase 30% by 2050. If entrepreneurs have access to small business loans for minorities this could mean more Latino business creation and therefore more jobs for the community.
Hard work and persistence that characterize Latino business owners in the U.S. has allowed them to overcome political conflict, racism, lack of access to small business loans for minorities, and will also overcome this global health crisis.
Latinos are creating small businesses faster than the rest of the U.S. population; however, projects are held back by a lack of funding. If these businesses grow faster, they could contribute 1.4 trillion to the country’s economy.
It is time to join the latinos who’ve made it and to start the business of your dreams. You just need to let all the talent that runs through your veins flow, like the 4 million Latinos have done in the last 10 years. Seek support from companies like Camino Financial to get small business loans for minorities tailored to your needs and leave the name of Latinos high. What kind of business do you want to start?