Think of your town and the places you like to shop. Did you think of any small, local businesses? Owned and run by our neighbors, friends, and family, small businesses help color our lives and neighborhood. Unfortunately, one-fifth of all US small businesses close within a year due to a lack of funds and support. Obstacles are more ubiquitous for diverse-owned businesses, including BIPOC-owned, women-owned, and LGBTQ-owned businesses. That’s why funding and resources are imperative for small businesses with diverse leadership, such as Latino/a-owned businesses.
Across the country, there are 5 million Latino/a/x- and Hispanic-owned businesses, generating over $800 billion in revenue annually. These businesses are in industries like coffee and apparel, many also fair trade.
Latino/a business owners face disproportionate obstacles when it comes to funding and helping maintain their enterprises. Loans from the Small Business Administration (SBA) can be crucial for small businesses, but 32% of Hispanic entrepreneurs reported being denied an SBA-backed loan, compared to 18% of white-owned businesses. Also, most Latino/a business owners reported having to rely on personal funds or financial aid from friends and family to start and maintain their business.
The following resources and funding opportunities for Latino/a-owned businesses can help keep these businesses open and inspire more diverse entrepreneurs to pursue their small business dreams.
Unique Funding for Latino/a-Owned Businesses
Grant and investment opportunities tailored to specific communities are critical, ensuring marginalized entrepreneurs can receive aid. The following list gathers several of these opportunities for ease of access:
- Latino Economic Development Center: A community development financial institution (CDFI) to help businesses in Puerto Rico, Washington, DC, and Baltimore.
- National Association for Latino Community Asset Builders: NALCAB advances racial & economic equity by providing grants, loans and training to member organizations across the US — supporting their work to advance economic mobility in the Latino communities they serve.
- The League of United Latin American Citizens: Offers Latino/a Americans help and resources in various areas, including grants for entrepreneurs.
- The National Hispanic Business Group: Promotes economic advancement within the Hispanic business community through mentorship, scholarships, specialized workshops, and in-person events throughout the year.
- Latino Entrepreneurship Fund: From the Latino Community Foundation, this fund has invested more than $1.6 million since 2020 in the immense power and potential of Latino entrepreneurs.
- Local Funding: Try searching “Latino/a business funding + STATE” to find specific grants and loans by location.
Get Out the Word
One of the biggest challenges for small businesses is simply being known. With unethical, overbearing corporations like Amazon and Target, possessing disproportionate market share, many people don’t discover small businesses unless they’re intentionally looking for them.
For Latino/a-owned businesses, connecting with other like-minded enterprises, consumers, press, and more, is survival.
The below communities and networks offer a space for Latino/a-owned businesses:
- Association of Latino Professionals For America: This professional association serves hundreds of thousands of professionals, offering things like a Latina-led mentor program, scholarships, and more.
- EY Entrepreneurs Access Network: Offers a range of resources, including one-to-one coaching, training programs, and an annual spring summit for Black and Hispanic/Latino leaders.
- The Hispanic Association of Small Businesses: A nonprofit designed to empower current and aspiring Hispanic entrepreneurs, providing a range of free- to low-cost services to local business owners, including informational resources, business education workshops, remedial English classes, and consultation and networking opportunities.
- Latinas Think Big: The largest network for Latina professionals, entrepreneurs, and students, offering in-person events as well as an online community of over 20,000 members.
- The Latino Business Action Network: In partnership with Stanford University, aims to foster the growth and success of Latino businesses through innovative programs.
- The U.S. Hispanic Chamber of Commerce: The umbrella organization for more than 200 local Hispanic chambers of commerce and Hispanic business organizations around the United States.
- Latino Civic Alliance: Latino Civic Alliance Small Business Technical Assistance PRIMERO Program offers consulting services at no charge to small business owners.
A diverse market is a win-win for everyone, enriching our lives through ethical consumption, narrowing wealth gaps, and social justice.
If you love to patronize a small business owned by someone in the Latino/a/x community, consider sharing these resources with them. Small businesses are community institutions, and they only thrive when we come together to support them.
Find more resources for business owners: LGBTQ
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