Latino entrepreneurs are not just contributing to the U.S. economy; they are redefining its future. Their success is America’s success.
Arturo Cázares
CEO, Latino Business Action Network
The numbers tell a compelling story: Latino-owned businesses represent one of the most dynamic and rapidly growing sectors of the U.S. economy. With more than 5 million firms generating over $800 billion annually, Latino entrepreneurs are fueling job creation, economic expansion, and innovation across every industry.
Recent research by the Latino Business Action Network (LBAN) and Stanford Graduate School of Business underscores just how critical this entrepreneurial activity is. Without the rapid growth of Latino-owned businesses over the past five years, the total number of businesses nationwide would have declined. Latinos are not just participating in the U.S. economy; they are driving it forward. On average, Latino entrepreneurs launch businesses at a faster rate, achieve quicker revenue growth, and create more jobs with superior benefits. When Latino-owned businesses scale, they uplift not just their communities but the entire country. Our country needs more of what Latinos bring.
Facing systemic barriers
Significantly, this economic powerhouse is largely immigrant-driven: About half of all Latino-owned businesses are established by immigrants, highlighting the indispensable role immigrants play in the U.S. economy.
Yet, despite these extraordinary contributions, Latino entrepreneurs continue to face persistent, systemic, and implicit barriers that limit their ability to scale and amplify their impact. Latino entrepreneurs are only half as likely to receive full funding compared to their white counterparts, secure less than 2% of all venture capital, and have diminished access to critical business contracts. Moreover, there’s an alarming lack of transparency: Just 51% of Latino business owners receive clear explanations when denied funding, versus 86% of white-owned businesses. This opacity hinders their ability to address funding application challenges and perpetuates longstanding inequities within the financial system.
These disparities are not limited to Latinos. They are part of broader systemic and implicit barriers impacting Black, Indigenous, and women entrepreneurs, further limiting economic growth and innovation. However, the economy is not zero-sum. By understanding and addressing these obstacles, capital providers, corporations, and public institutions can not only level the playing field but also expand it, making the economy bigger for everyone.
Creating a more inclusive economy
If Latino entrepreneurs had equitable access to capital, contracts, and support, their already impressive growth trajectory could yield transformative economic outcomes for America. Addressing these systemic issues has the potential to unlock trillions of dollars in added economic value, a unique opportunity for the nation’s future.
At the LBAN, we believe that unlocking the full potential of Latino entrepreneurs is one of the most important economic opportunities of our time. Through research, education, and a thriving national ecosystem, we’re working to grow the U.S. economy by empowering Latino entrepreneurship. Ecosystem building isn’t just one of our pillars; it’s the center of everything we do. Community is our greatest strength. Social capital has always been the superpower of Latino families and neighborhoods. Now, we are scaling that to the professional level, helping entrepreneurs overcome barriers and scale. This is an ecosystem of mutual support, built on trust, powered by connection, and focused on outcomes. Together, we’re breaking barriers, accelerating growth, and creating a fairer environment for all entrepreneurs.
We invite all to join in building a more inclusive and prosperous economy for all. Learn more at lban.us.
