Latinos Lead in Launching Small Businesses

latinos in small business

We’ve talked before about biases in hiring and banking, but sometimes there are good stories we can share about non-white people getting ahead. Latinos lead in launching new businesses. In fact, the rate of businesses launched by Latinos is nearly double that of Whites, Asians, and African Americans. In 2017, the rate of new Latino entrepreneurs was 0.5% vs. 0.3% across the other ethnic groups reported (Statista). Hispanic-owned businesses are up by 21% in past 4 years, and now, in 2017, they hit 4 million.

Thinking about making changes to your business? ProStrategix knows how to help. Read some of our other articles below, or feel free to connect with us and get a complimentary thirty-minute consulting session.

Foreign-Born Americans are More Entrepreneurial

Contrary to popular belief, or the propaganda and misinformation spewed as news, foreign-born nationals start business at a rate of nearly twice that of American born rate. In fact, “immigrants now launch more than a quarter of U.S. businesses. All entrepreneurs should welcome reform that would make it easier for this class of strivers to stay–and succeed.” (Inc).  

This really isn’t that surprising. The skills needed to be an entrepreneur are very similar to those needed to immigrate – risk-taking, resourcefulness, willingness to learn new things, adaptable to change, and the like. 

Immigration Equals, Job Creation Not Job Loss

Half of Americans are employed by small businesses. A quarter of those are launched by immigrants. Since immigrants start new businesses at twice the rate of citizens, immigration should equal net job creation. The myth surrounding immigration as bad for jobs is unfounded. New York City and our country were founded on immigration. Our values on entrepreneurship are based on this fact. We wouldn’t be the largest economy in the world without it. We hurt our own growth when we restrict entry to people who are more likely to help our economy than harm.  

Access to Small Business Capital is NOT Equal for Latinos

While majority Hispanic owned businesses employ roughly 2.7 million Americans and contribute over $700 million to the economy annually, they still struggle to gain the same access to capital as male, white business owners have. White business owners have more access to credit and financing than do Hispanics or any other ethnic group despite having equal revenue growth, employment growth and profitability.

At ProStrategix, we know you have concerns.  We’re designed to help give you the business support you need so you can focus on doing what you love.  If you would like to learn about how we might be able to help you, please contact us.

The Gender Gap: Women-Owned Businesses Gain Ground

women owned businesses

Historically, women-owned small businesses have lagged behind other small businesses in terms of growth and hiring. However, recent data show that this gap is closing. In fact, women business owners are more optimistic about their growth and hiring than other businesses. 

Your business is doing well. But what’s next? ProStrategix knows how to help. Read some of our other articles below, or feel free to connect with us and get a complimentary thirty-minute consulting session.

Women are More Bullish

The 2019 Bank of America report showed that the 84% of women-owned businesses expect year-on-year sales growth. In addition, 73% of them expect to expand their businesses in the coming year. In comparison, 66% of all other business are as bullish on hiring. In other words, women are planning for growth in a big way.

Number of Women Owned Business are Growing

A report by American Express also showed very encouraging trends. From 2014 – 2019, the number of women owned businesses increased by over 20%. When we look at these numbers by ethnicity, it’s even more promising. In fact, the number of African American women-owned business grew by more than double this rate. They grew by 50%.  

Barriers Remain – Primarily in Raising Capital

As we’ve mentioned before, gender bias in lending and raising capital is very real. The Bank of America report highlights this issue. Sadly, over 50% of women-owned ventures said that they do not have equal access to the best loans and capital. There are some efforts being discussed in Washington. For example, an angel investor tax credit is being explored as an incentive for investors to support local women-owned small businesses. It may be gaining momentum, but it’s a long hill to climb. In fact, only a bit more than 2% of the total venture capital investment went to women-owned ventures.

In Summary

While these numbers are extremely encouraging, work still remains to close the gender gap. If you are woman-owned small business, it is important to ensure that you have the strongest pitch and plan together when raising capital. It is grossly unfair, but in order to win, your pitch will need to be superior to male-owned pitches. I wish it were different, and hopefully, soon, it will be. But, until then, it’s best to go in with your eyes wide open. Don’t be discouraged. If you have a great idea, it can be done.

At ProStrategix, we know you have concerns.  We’re designed to help give you the business support you need so you can focus on doing what you love.  If you would like to learn about how we might be able to help you, please contact us.

The Big Tech Effect on Small Business

big tech effect small business

Are the effects of big tech a friend or a foe to small businesses like yours and mind? The short answer: it’s likely both. As we said in our recent post about Amazon and Small Businesses, you can still have a chance at winning. But, it’s a little unfair since the people that you are playing against make the rules for the game.  

Thinking about making changes to your business? ProStrategix knows how to help. Read some of our other articles below, or feel free to connect with us and get a complimentary thirty-minute consulting session.

Playing Football with the Referees

Working with Amazon, Facebook and Google is a bit like playing football against a team that not only own the refs but can also change the rules of the game in the 4th quarter. Against those odds, it’s hard to win. That’s why it’s not surprising that these digital goliaths are facing congressional scrutiny over their business practices. But tech is taking over, so you will need to learn soon.

Deja Vu?

Many readers may not remember a browser called Netscape. It dates to the 1990s with Microsoft maintaining control where they had no rights. It was using its market dominance to push out Netscape by auto-installing Internet Explorer on all PCs that ran the Windows platform. Microsoft was hit hard by antitrust litigation, congressional scrutiny, but most importantly, European Union scrutiny. The EU took the lead, but by the time action was taken, Netscape was dead. However, one has to wonder if Google Chrome or Google itself would have stood a chance of survival if the Microsoft antitrust actions hadn’t been taken.

Fast Forward to 2020

Congress is starting to seriously look at how these companies impact the competitiveness of small businesses. They are holding a hearing to explore the possible harm these companies have done to small businesses. The questions surround the effect of the mega tech firms have on smaller companies. They want to know if small outlets are disadvantaged when competing directly with internet giants or try to promote themselves on their sites. 

Leaving Las Vegas?

Look, it’s like going to Las Vegas. The house has the advantage in any game you play. In some games, it’s more than others. Antitrust laws are meant to make the odds 50/50. But, rarely is it ever so. Knowing that you are playing against the house, it wise to play the games with the best odds. Thinking the odds are equal across all the games is best way to lose a lot of money. If you’re paying attention to market trends, you’ll notice that it’s best to alter your game so you can play where you do not directly compete.

The Cause and Effect of Big Tech Changes

It’s likely that Congress will find some embarrassing details that will shame the companies for a while. There’s enough fodder. Amazon’s treatment of 3rd party sellers is responsible for E-Commerce failuresAmazonBasics acting like a digital private label. Google and Facebook playing favorites with the ads. I’m betting they’ll find something. But, will it amount to a lasting change or just a PR hit. My money is on the latter. It’s much easier to look like you are trying to solve a problem that to do it. 

At ProStrategix, we know you have concerns.  We’re designed to help give you the business support you need so you can focus on doing what you love.  If you would like to learn about how we might be able to help you, please contact us.

A Small Business Guide to LinkedIn: Part 1

Small Business LInkedin Guide

LinkedIn can be a very powerful tool in B2B selling for Small Business. We don’t claim to be experts. We’re learning too. As part of our learning journey, we can across this amazing infographic from Headway Capital. While we think it is amazing, it’s a lot to take in at one time. To make it easier, we turned the infographic into a series of videos and slide shows that we believe make it easier to use. We call it the Small Business Guide to LinkedIn. 

Thinking about making changes to your business? ProStrategix knows how to help. Read some of our other articles below, or feel free to connect with us and get a complimentary thirty-minute consulting session.

Why LinkedIn?

If you view LinkedIn as just a social media network, you’re missing the bigger picture. It’s is a powerful tool to promote your business, to learn about your market, and to connect with relevant peers. It’s a vast and highly educated network, with over 600 Million users. For more reasons why your small business should use LinkedIn, please watch this short video as a guide

So How Can You Create Your LinkedIn Company Page?

It’s relatively simple to concrete a company page on LinkedIn. If you’ve set one up on Facebook, or any other site, it’s just as simple. Here’s a short how-to guide on making a small business LinkedIn profile. 

At ProStrategix, we know you have concerns.  We’re designed to help give you the business support you need so you can focus on doing what you love.  If you would like to learn about how we might be able to help you, please contact us.

A Small Business Guide to LinkedIn: Part 2

Small Business LInkedin Guide

In our last post, we shared a guide to why LinkedIn is important and how to set-up your LinkedIn company page and how to post the right kind of content. In this post, we will discuss strategies for optimizing your page and building followers  in our second guide to LinkedIn.

Thinking about making changes to your business? ProStrategix knows how to help. Read some of our other articles below, or feel free to connect with us and get a complimentary thirty-minute consulting session.

So, How to Post Content Effectively?

It’s very important that you post relevant content frequently. The rule of thumb is 1 to 2 posts per day. Yes, this is a huge time commitment. But, we hope that you, like us, feel this is an investment well spent. It also takes time. It can take 6 months to a year to gain the full benefit of your efforts. There will be many disappointments along the way, but persistence is key. 

A profile boost like as outlined in the video can deliver a more meaningful audience. Now, you can showcase your content to people who will find it more relevant. Did you know that nearly half of all B2B web traffic from social media originates on LinkedIn? That’s why it’s so important to have your page optimized so you can make the most of this organic traffic. For more about what you should consider posting, please watch the following guide to LinkedIn. 

How can you guide followers to your LinkedIn profile?

This is no small task. If you have completed the prior tasks, this should be easier. You have relevant content and an optimized page so new contacts will be able to gauge your value more quickly. There are no shortcuts to guide true followers to your LinkedIn. It takes effort. The video shows some ways that great ways to help. That said, you will still need to take the time to research the right contacts, read their profiles, find a meaningful reason to connect, and send a personalized invitation.  

At ProStrategix, we know you have concerns.  We’re designed to help give you the business support you need so you can focus on doing what you love.  If you would like to learn about how we might be able to help you, please contact us.