Why are Hispanic entrepreneurs so successful in the United States?
Hispanics are the fastest growing group of entrepreneurs on US soil, as shown by various studies. But have you ever wonderedWhy are Hispanic entrepreneurs so successful in the United States? En Hispanic Entrepreneurs we will give you the answer.
According to an investigation by USA TODAY Network, 80% of Hispanics in the country are US citizens. They represent a growing economic and cultural force even though they still face racism that produces less income and access to loans.
Over the past 10 years, the number of Hispanics who own their own businesses has increased 34% said Stanford University. In addition, more of these have applied for loans to start or grow their small businesses. Hispanics have succeeded in the United States by creating and running leading companies in different sectors.
Why are Hispanic entrepreneurs so successful in the United States?
The growing success of Hispanic entrepreneurs has occurred at the same time that this population has become an economic force. Its small businesses bring in around $ 500 billion annually in sales.
In 2020 this population became 30% of the United States, which suggests that its contribution will continue to grow. Although they are fewer in number than Americans' businesses, if they were given the same opportunities, they would generate up to an additional 4 trillion.
In 2018, Bank of America indicated in a report that Hispanics focus on long-term growth. They rely on digital tools, social networks and their community to guarantee their growth. They have proven to be more competitive and more managerial than non-Latinos.
Cultural heritage differentiates them from the rest by taking advantage of it to network, they also manage to retain customers and increase the quality of development. All of these factors lead them down the path of business growth.
Although it is a fundamental rule to use social networks today to promote the company; it is Hispanics who get the most out of them. They have started using them to connect with customers, partners, suppliers and expand the reach of advertising.
Another key factor is your ability to manage personnel., recognize that employees with an essential part of the business. They treat them like family, give them special benefits, bonuses, flexible hours and even remote work. In addition, they see their community as the one that will promote its development. This has been key to its growth.
Other Success Factors for Hispanic Entrepreneurs in the USA
Today's successful Hispanic entrepreneurs are generally millennials who came to the United States as children. 86% of immigrant businesses that generate more than a million dollars belong to this group.
Young people have a unique motivation to succeed and it does so to improve their lives. That is why they are creating new businesses and creating jobs with great speed and success. They own manufacturing companies, health services, restaurants, finance, construction, among other sectors.
They are younger than their non-Latino colleagues, about 33% are under 45 years of age. This contrasts with 22% of those who are not from their community. It also helps them that their businesses scale regardless of the ethnic makeup of the community in which they operate.
The new Hispanic entrepreneur raised his profile, has a higher level of education and a higher rate of home ownership. They produce higher personal income, which represents an advantage that they did not have before. That is why they are starting companies at a higher rate than the national average in all sectors.
Given the gap that still exists to get help from the national bank, some choose to save to start their business. Those that generate less than a million dollars usually get financed with credit cards and other lines of credit. To loans from friends or family, among others.
But others choose unconventional financing alternatives like the Federal Development Agency's Small Business Financing Program. Also through Fintech, crowdfunding or crowdlending (investors who lend money in exchange for interest).
Likewise, they borrow from local banks at a very high interest rate. However, they have been able to overcome the difficulty and achieve successful businesses.
Successful Hispanics in the United States
There is a list of Hispanic entrepreneurs who have stood out above the rest. Among these is Jorge Pérez, he is one of the most influential in the USA as he co-founded the construction company Related Group of Florida. Born in Argentina, he came to this country as a teenager. This year he beat his mansion to donate the money to a foundation to help the community.
Arturo Moreno became the first Mexican-American to own a sports franchise by acquiring the Los Angeles Angels. He made his fortune with the billboard company called Outdoor Systems.
Meanwhile, Beto Pérez, creator of Zumba Fitness, got rich marketing this exercise trend. Together with its partners, it has more than 200.000 stores around the world.
For his part, Matías de Tezanos has founded at least 12 companies. He is currently the CEO of AutoWeb, a pay-per-click marketing network for car dealers and automakers. These and others are improving the economic outlook in the US.
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