Latinx Businesses Less Likely to Get Funding
The Stanford Latino Entrepreneurship Initiative (SLEI) last week released a report which took a closer look at national trends underlying Latinx business growth. The 2018 State of Latino Entrepreneurship report found that while Latinxs launch more businesses than any other group, their companies often start small and stay small -- a trend that can be at least partially attributed to lack of funding. When applying for financing, only 28% of Latinx business owners receive full funding, compared with 48% of white business owners. SLEI found that if the current number of Latino-owned businesses grew to match the size of their non-Latino counterparts, it would add 5.3 million new jobs and $1.5 trillion to the U.S. economy. There are an estimated 5 million Latinx-owned businesses in the U.S, and about half of employer Latinx firms are owned by immigrants. While the total number of businesses in the U.S. declined from 2007 to 2012, the number of Latinx-owned businesses grew by 46%. More here.