Latino Entrepreneurship: Tips For Every Aspiring Latino Entrepreneur

Latino entrepreneurship is slowly becoming the cornerstone of the US economy. It signifies the population, comprising Latin immigrants, starting their businesses in the US and cultivating higher growth for themselves and the entire US economy.

Latinos have been found starting businesses at more than twice the rate of the general population of America. These people are filled with self-belief, hard work and determination and are gradually emerging as the face of the American dream. In short, they have become the main catalyst driving the historic small business boom in the United States.

If you are a Latino reading this, you'll be glad to know that, yes, you guys have proved your excellence, brilliance and value, especially in the business world, and if you are one of the numerous aspiring Latino entrepreneurs seeking guidance for starting a business, here are some tips that will help you through the process.

#1 - Come Up With A Business Plan:

There are no brownie points for guessing the first step to starting a business. It’s getting hold of a business plan and idea. In a fast-moving economy like the US, almost anything sells, but it doesn't mean you just get your hands in any business. Have a long-term vision, and think about how the business will grow and what new opportunities will come along the way.

Think of the strengths and weaknesses, trouble points and how to overcome them while conducting business operations. Before you even begin thinking about investing your first penny, do a detailed analysis and research on how the product or service should be offered, who will be your target audience, what will be the price, and how will the people perceive it. It can be anything from a small retail store operating in a particular area of a cable and internet service like Xfinity Servicio al Cliente serving across states to diversified industries, contributing to the growth of an economy. For Latinos trying to go out of their locality and community areas to serve, location is an essential aspect of their business.

#2 - Good Credit Is Important:

One thing that stands out for a Latino business than American citizens and other typical entrepreneurs is that they possess financial discipline and are financially literate. A Stanford study reportedly observed that when a Latino starts a business, 70% of their capital and funding comes directly from their savings. Only 6% is sourced through commercial loans.

So, when you have a great business idea in mind, and if you truly believe in it, there is no harm in investing your life savings. But at the same time, if you are looking for credit, always go for good credit practices, like getting help from friends, family or relatives who are willing to help you. Latinos do have community programs that come forward to help their people. This way, you can save a lot of money and do not have to worry about interest.

Lastly, if you think you need to take a commercial loan, always do proper research and comparative analysis before applying for it.

#3 - Find A Mentor:

Having someone to look up to and understand how they dealt with a situation and how they overcame business troubles is like a blessing. More than 3 million people work in over 350,000 Latino-owned businesses. From 2007 to 2019, Latino entrepreneurs grew by 34% compared to white-owned businesses, which declined by 7%. 

With such astonishing figures, you will surely find the right mentor. In fact, maybe you will find a mentor from the same industry you plan to start a business in. It is recommended to never hesitate to ask and learn from other's mistakes, and it is completely alright to find a mentor outside your community. If you can relate to their story and issues, share the same mindset, and get inspired, that's all you need to find and follow a mentor.

From the iconic Carolina Herrera to the legendary Carlos Castro, Latinos have made a significant mark and contribution to the business community in the US and globally. You can read their life stories and search about them; voila, you will have plenty of tips for Latino entrepreneurs.

#4 - Look Into Funding for Latino Businesses:

If you are planning to make your Latino business success story big, you must find multiple ways to fund your business and be prepared for hustle and hard work. We have already discussed how financially disciplined Latino people are. Still, establishing a business always tests patience, and hence, to survive tough times, there is always a constant need for strong funding. There are multiple sources of Latino business funding offered by different US-authorized entities that help in establishing small businesses, such as -

• US Small Business Administration (SBA)
• Minority Business Development Agency (MBDA)
• Community Development Financial Institutions (CDFI)
• The League of United Latin American Citizens
• The National Association for Latino Community Asset Builders

Numerous entities, including Hispanic American banks and credit unions, are always there to help, support, guide and offer entrepreneurial advice for Latinos. If you need help, you may contact them, and if you think you can manage alone, stay connected with these organizations and their people, as they would help you in ways you can't even imagine. Creating connections and expanding networks will always help you. This way, you also build your reputation among people and across networks.

The concept of Latino entrepreneurship has never been used as widely as it is being used now, given the dominance it has acquired due to the continuous support it has been providing to the US economy through its basic and advanced business forms. Latino entrepreneurs are creating their path to success, contributing to the US and world economy. For every aspiring Latino entrepreneur, the above tips would be a panacea for all doubts and queries while dreaming of becoming a successful businessperson. There are endless possibilities; you must take the first step, and the rest will automatically follow.