At this same time last year, the entrepreneurship of Latinos and Immigrants was flourishing. Between 2018 and 2023, the number of companies owned by Latinos increased 44%, boosting a historical boom of small businesses and generating more than $ 650 billion in revenue annually. In recent years, Latin and Immigrant Entrepreneurs have started new business at a rate twice as to that of the general population, building national capacity in key sectors such as construction and manufacturing. Today, almost half of Fortune 500 companies were founded by immigrants or their children.
Unfortunately, they threaten them to derail this economic engine. As they increase them, local economies weaken, with the fear that police beats will keep people at home. Many immigrants, including those with legal status, have stopped spending money on restaurants or local shops, choosing to save on lawyers, bureaucracy and tutelage plans for their children if they separate. The destabilizing effects of Draconian immigration policies, along with OE in federal companies for small businesses, undermine the economic future of our country.
The American dream of owning a business is not just about individual success-it is about building strong local economies, where opportunities are available to anyone who has the courage to create them. When small businesses prosper, they create jobs, pay taxes that support local schools and infrastructure, and build wealth for the community. Supporting all emerging businesses in the United States is an investment in the country’s entire economic future.
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As leaders of organizations dedicated to economic advancement and Latin entrepreneurship, we see three critical areas where action is necessary today than ever to release the full potential of Latin and Immigrant Entrepreneurs:
First, Congress should restore federal basic support and philanthropy should maintain, or increase, their investments to help small companies grow, including investments in business coaching resources such as small business and accelerators care centers. With coaching, small business owners can successfully browse the technical aspects of business management, such as creating a business plan, accessing complex government purchasing opportunities, and managing cash flow. Business coaching can also offer life lines to small businesses that sail challenges such as fares or forest fires. Unfortunately, access to corporate coaching resources will be harmed by the proposed financing cuts for US small business administration, as well as small rural companies run by the US Department of Agriculture. It is also essential that business coaching is available in all communities – which goes against the recent dismantling of the minority business development agency, which will close many resource centers for small businesses in various communities.
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Secondly, philanthropy and legislators should invest in financial institutions for community development (IFDCS) so that Latin and Immigrant owned companies can access the necessary financing to prosper. Latin entrepreneurs have about half of the likelihood of white -owned companies to receive the total amount of the requested financing. IFDCs help to close this gap in specializing in loans for small companies very small for traditional bank loans – from food carts to barber shops – and understanding the unique finance and historical credit history of immigrants. Latin -led IFDCs are more likely to serve Latin customers, but only represent about 15% of California IFDCs. Latin Community Foundation has launched the Latin Capital Accelerator initiative to support and increase the capacity of these community and reliable institutions. Cameo Network is a key partner who provides this capacity, where our collective work essentially supports over 300 Latin companies annually, guiding and training IFDCs led by Latinos.
Finally, it is also important that policy formulators directly address loan discrimination to ensure that no entrepreneur is rejected because of their name or appearance. The Federal Reserve found that Latin entrepreneurs were twice the rate of denial of financing in relation to white entrepreneurs. The Consumer Financial Protection Bureau) has completed a rule that would help eradicate borrowing discrimination, requiring the measurement of demographic data on loan for small businesses, but it will not be applied by the current government.
Today, the United States face a choice between two economic future: one that welcomes the talents, motivation and contributions of Latin and Immigrant Entrepreneurs, or one that focuses on an increasingly restricted view of what it means to be American. Economic data is clear: we are stronger with an economy that makes room for all entrepreneurs to pursue their dreams.
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Possession of small businesses has always been at the heart of prosperity in the United States. Having a business of its own is one of the main ways to build wealth in this country. For immigrants and their children, entrepreneurship represents the promise of the United States – that hard work, determination and creativity can lead to a better life. Latin -owned companies could add $ 1.1 trillion to the US economy if they had the same average revenue as white companies. By investing in the success of immigrant and Latin entrepreneurs, we are supporting more than individual dreams; We are building a more resilient, dynamic and prosperous nation for all Americans.
Undermining and threatening the economic power of immigrant communities is a bad deal. When Latin companies thrive, the United States thrives. Our policies and institutions must recognize this fundamental truth.
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