How Latino Entrepreneurs Pursue Their ‘American Dream’
Did you know that the economic future of the U.S. depends on Latino startups? As a matter of fact, Stanford Latino Entrepreneurship Initiative (SLEI) discovered that Latino startups can be a $1.4-trillion opportunity.
Latinos comprise 17 percent of the U.S. population. Unfortunately, only 8 percent of all startups are Latino-owned and less than 1 percent of venture-backed firms are founded by Latinos.
In spite of the challenges in the business realm, several promising Latino entrepreneurs continue to tap into the best startup ecosystems to pursue their ultimate "American Dream" of going from survival to success in the U.S.
Latinos are Entrepreneurs
When we say or hear the world "Latino," we often associate it with the word "entrepreneur," noting the Latino drive when it comes to business. In fact, experts said their entrepreneurial spirit is almost an "unstoppable force."
Latinos, however, are hindered from accessing the tools to succeed. According to Sol Trujillo, a highly successful Latino businessman and passionate advocate for Latino-owned businesses, sustaining the development of businesses in the U.S. is currently a major concern.
While Latino entrepreneurs remain optimistic about their financial growth and success, 54 percent of businesses surveyed are either growing sluggishly, staying stagnant or dwindling.
The Challenges in the Business Realm
With the recent findings discovered by the Stanford Graduate School of Business, the financial and cultural hurdles the Latinos are experiencing are quite startling. While several Latino businesses may be young and still lack maturity from an economic point of view, inequality and opportunity are definitely some of the obvious challenges Latino entrepreneurs face.
Trujillo also noted that Latino-owned businesses are having a difficulty in accessing capital and mentor networks. They are also prevented to access more "creative" forms of capital.
Another reason is the so-called "knowledge gap," where majority of Latino business owners use their personal savings or credit cards to start up their businesses because they don't know about governmental loans that are available to help flourishing businesses.
"It's very hard to tap into those circles," Manos Accelerator CEO and cofounder Edward Avila said. "If you're a Latino who didn't go to Stanford University or the Ivy League schools, it's a challenge. And Latinos don't typically have wealthy friends and family to get them started."
Pursue the "American Dream"
Despite these challenges and the struggles to expand with the strength and revenue that non-Latino businesses possess, Latinos are still optimistic and resilient in pursuing their American dreams. And with their unstoppable entrepreneurial spirit, Latino entrepreneurs can surely go far.
Even though the odds are against them, including the lack of diversity in venture-backed startups in the U.S., Latino entrepreneurs defied these odds by proving they can do more than manual labor and are skilled in doing creative and innovative thing.
Breaking the Barriers
Despite being one of the underserved minorities in the U.S., Latinos are gradually breaking down the barriers to catalyze growth, not only for the Latino community but for the whole economic future of the nation. And though the stakes are much higher without a network of support, success never depends on race; rather, it's how you are willing to take the risks to make it happen.
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