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.
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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.