WASHINGTON, Sept. 15, 2022 – Over the past 10 years, Hispanic entrepreneurs have continued to start small businesses at a faster rate of 44%, compared to 4% of their non-Hispanic counterparts, according to a meta-analysis from SCORE, mentors to America’s small businesses and a resource partner of the U.S. Small Business Administration.
There are nearly five million Hispanic-owned businesses throughout the country, and they contribute more than $800 billion to the American economy each year, according to SCORE’s analysis. Not only that, Hispanic small businesses employ about three million workers, with more than $100 billion in annual payroll.
Despite Hispanic small businesses’ significant contributions to the U.S. economy and their rapid growth, this community of entrepreneurs face unique challenges they must overcome in order to thrive.
Hispanic-owned small business funding woes
According to SCORE data, Hispanic entrepreneurs are grappling significantly with pandemic fallout, with 30% sharing that their business is weaker today than at the height of COVID.
More specifically, Hispanic small businesses face obstacles with financing. While funding has provided a greater lifeline for Hispanic entrepreneurs during the pandemic, 39.3% say access to financing remains a challenge, compared to 18% of White small business owners. Additionally, 42.6% of Hispanic small businesses say cash flow is an issue, compared to only 32.1% of White entrepreneurs.
In order to fund their small business dreams, 31% of Hispanic entrepreneurs are more likely to tap into their own personal savings, compared to 24% of White small business owners.
Here’s what Hispanic entrepreneurs need
Nearly 65% of Hispanic businesses say they need access to capital and nearly 40% say debt/loan forgiveness would help them succeed in the coming year.
In response, SCORE has created SCORE for Hispanic Entrepreneurs, a centralized resource hub that offers personalized support and resource guidance.
“SCORE is prepared and continues to support Hispanic entrepreneurs in every stage of their business,” says Ricardo Casas, assistant district director for SCORE Southeast Florida. “We encourage Hispanic small business owners to take advantage of the free, expert mentoring offered in both English and Spanish that can guide you to overcome any challenge and be successful.”
Hispanic small business owners benefit from SCORE
SCORE Southern Maryland client Sandra Vasquez emphasizes the importance of her SCORE support system: “Latino businesses are becoming a leading force behind the American economy. However, it’s tough to navigate through the red tape. SCORE provided me with the information and training in order to successfully get through the process and open my gym almost one year ago.”
Doug Nunez and Rafael Bruno, co-owners of The Torta Chaser in Las Vegas, Nev., reflect on their experience with SCORE: “We cannot thank SCORE enough for all they did to help make our dream a reality. We learned so much from the resources and workshops provided, and especially from our amazing mentor, Lori Karbel. She really helped us grow our business and ourselves as individuals. We now consider her part of the familia!”
For more information about resources available to Hispanic entrepreneurs, visit SCORE.org.
Since 1964, SCORE has helped 11 million entrepreneurs start or grow a business. SCORE's 10,000 volunteers provide free mentoring, workshops and educational services to 1,500+ communities nationwide, creating 25,084 new businesses and 71,475 non-owner jobs in 2021 alone. Visit SCORE at www.score.org. Follow @SCOREMentors on Facebook, Twitter and LinkedIn.
Funded in part through a cooperative agreement with the U.S. Small Business Administration.
Megaphone of Main Street: The Small Business Rural/Urban Divide (NOTE: Analysis of the responses of business owners who identified as Hispanic were compared versus non-minority business owners for this meta-analysis)