PALO ALTO, CA, Mar 27, 2024 (GLOBE NEWSWIRE) -- Today, the Latino Business Action Network (LBAN), in collaboration with the Stanford Graduate School of Business (GSB), released the 9th annual State of Latino Entrepreneurship (SOLE) research report highlighting the latest trends in Latino entrepreneurship across the U.S. The findings will be presented today at the 2024 State of Latino Entrepreneurship (SOLE) Summit.
The research provides valuable insights into the contribution and opportunity Latinos represent to the U.S. economy, as well as shedding light on the continuous challenges faced by Latino business owners. This year’s report aims to understand better the diversity and intricacies of Latino entrepreneurship, focusing on three different sub-groups: women business owners, tech-centric firms, and immigrant-owned companies.
KEY TAKEAWAYS:
THE LATINO OPPORTUNITY FOR THE U.S. ECONOMY
The research shows that Latino-owned businesses are a dynamic and growing portion of the U.S.; with more than 5 million firms driving $800 billion in revenue, they represent a huge opportunity for the U.S. In fact, the number of Latino-owned businesses is growing 10x faster than white-owned businesses. Between 2007 and 2022, the United States experienced a 57% growth in Latino-owned businesses, substantially surpassing the 5% increase in white-owned businesses during the same period. Latinos continue to have higher growth rates than those owned by white entrepreneurs. As shown in the graph, the 3-year (2020-2023) median compound annual growth rate was 8.7% for Latino-owned businesses versus just 5.6% for white-owned businesses.
Latinos are not only starting businesses faster and experiencing higher revenue growth rates but they are also creating more jobs with better benefits. Between 2007 and 2022, the annual payroll of Latino-owned businesses more than doubled (123% increase), consistently showing higher growth rates compared to white-owned businesses. When considering how Latinos are creating businesses, growing them, and creating more jobs, it's evident that Latinos have a positive impact on the economy.
However, besides these great numbers, Latinos continue to face challenges due to systemic biases that limit their growth. If Latino entrepreneurs receive fair access to capital and contracts, it will unlock trillions of dollars of additional economic growth for the U.S. economy, benefiting us all. That is why LBAN places such a big focus on ecosystem building; at the heart of their mission is creating the ecosystem that Latinos and everyone else deserve. The State of Latino Entrepreneurship Summit is a testament to their commitment, with more than 1,000 in-person attendees ranging from business owners, policymakers, capital providers, elected officials, students, and other ecosystem builders coming together to network and collaborate, fostering meaningful connections within the community.
REPORT SEGMENTATION
The report dives deeper into Latina-owned businesses and tech-centric businesses. It’s important to highlight that Latinas are starting new businesses and growing revenues more rapidly than their male counterparts. When looking at tech-centric companies, Latinos are over-indexing in the tech sector, which leads to faster adoption of AI technologies. To learn more, visit www.lban.us
With industry leaders such as José E. Feliciano, Managing Partner & Co-Founder of Clearlake Capital Group & Stanford Trustee, and Julián Castro, CEO of the Latino Community Foundation and former Secretary of Housing and Urban Development, the SOLE Summit promises to be an insightful and engaging event full with impactful discussions and strategic insights. The event will have different panel discussions on topics ranging from AI, access to capital, redefining the VC landscape for Latino startups, investing in immigrant entrepreneurship, and mergers & acquisitions.
“At LBAN, we are fortunate that some of the largest financial institutions and corporations are actively engaging in unlocking this Latino opportunity with us, and we welcome all others,” said Arturo Cazares, CEO of the Latino Business Action Network. “The SOLE Summit at Stanford serves as a pivotal gathering, bringing together diverse stakeholders, including other ecosystem builders, academics, and government representatives, to share ideas and create collaborations that will grow economic opportunities for our country.”
LBAN, the driver of the SOLE Summit, is supported by Bank of America, Wells Fargo, JPMorgan Chase, Surdna Foundation, Dell Technologies, Latino Community Foundation, Prosperity Now, Immigrants Rising, and many others.
About the Latino Business Action Network (LBAN):
LBAN is a dynamic Silicon Valley-based nonprofit with a big mission to strengthen the U.S. economy by empowering Latino Entrepreneurship across the country through entrepreneurship research, education, and a network of resources. For more information on LBAN, please visit www.lban.us
For media inquiries, please contact:
Marian Garcia Cruz
LBAN Marketing Manager
(408) 384-9389