4 tips to help Latina business owners succeed
By: Jenny Flores, Head of Philanthropy for Small Business Growth
SAN FRANCISCO, October 15, 2021 / PRNewswire / – As we celebrate Hispanic Heritage Month this year, it’s a good time to recognize the many contributions of Hispanic small business owners. And there really are a lot of them. well Fargo was the lead sponsor of the Latino Donor Collaborative‘s US Latino GDP report, which tracks the growing influence of the Latino community in the US economy, and the results are incredibly promising. Latinos have contributed $ 2.7 trillion to U.S. GDP in 2021, which is equivalent to the world’s seventh-largest economy, and they’re growing 57% faster than the U.S. economy as a whole. From 2010 to 2019, Latin American GDP was the third fastest growing among the 10 largest GDPs in the world, with the US economy ranking fourth. Latinos also account for 68% of the growth in workforce participation in the United States. These numbers are due, in large part, to Latin American business owners. In fact, in 2019, Latin women owned 18% of all women-owned businesses.1, and between 2014 and 2019, businesses owned by Latinas grew by 40%.2 These are big numbers and show the impact Latin American business owners have on the country’s overall economy.
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But we all know that small business owners have continued to struggle to stay open given the ongoing repercussions and fluctuations of the pandemic. While statistics for businesses run by Latinas are sobering – twice as many Latina-owned businesses experienced shutdown during the COVID-19 pandemic compared to their male counterparts (30% vs. 16%)3 – the tips below can help aspiring Latino entrepreneurs stay on track for success.
Develop a business plan
Having a good idea is NOT enough! Developing a business plan * is the key first step for any business owner. An effective plan can help you prioritize how you spend your time and money and set measurable goals. It can also help identify current or future obstacles in order to better anticipate and avoid potential risks. For example, with the impacts of COVID-19, you may have had to create more online offerings or improve your digital presence for your business. Some of you may have had to change your relationships with supply chains and suppliers or cut back on hiring. Either way, now is the time for you to consider how you have adjusted to the current situation, which of those adaptations you want to build on in the future, and then document that in your plan.
Get mentoring support
Latinos are increasingly in an advantageous position to start their own business – they are younger, with a higher level of education: almost 90% of Post-Millennial Latinos are high school graduates. They are contributing to the workforce in greater numbers, buying more homes and closing the wealth gap at a rapid rate. But the last year and a half has reinforced what we have always known: you need a village. As women business owners continue to emerge from the impacts of the pandemic and move from survivability to recovery and opportunity, connecting with mentors and other experts is one of the most powerful ways and most effective in exchanging knowledge, sharing best practices and learning from each other. . well Fargo recently partnered with the Nasdaq Entrepreneurial Center where women entrepreneurs can get additional support through its Milestone Mapping * Coaching Circles, a 12-week mentoring program to help them overcome key business challenges while building a network of peer support and a connection with mentors. Interested women business owners can apply to participate and, once accepted, they will be placed in a circle.
Find the right advice and information
Many women may not know where to turn for reliable information to help them with critical business decisions. The good news is that there are many free resources and tools available * to help educate women business owners. Another great place to start is the SBA.gov * website. It even offers a version of its site in Spanish. Additionally, the Minority Business Development Agency connects women with resources, events and opportunities to help them succeed through its Enterprising Women of Color initiative. Finally, the United States Hispanic Chamber of Commerce (USHCC) * has more than 200 locals designed to support ambitious Hispanic business owners and also offers specific programming for Latin American entrepreneurs.
Be prepared for credit
Once you’ve got a business plan, connected with mentors and other experts, and done your research, credit preparation will be a critical step before getting business financing. It’s important to work with a bank that offers tools and resources that make financing easier to understand, and a banker who shows you what your business needs to get approved for a loan. Before you apply for a small business loan or line of credit, your bank will want to make sure that your business is generating stable cash flow, has low debt levels, and is in a sound financial position in order to manage your payments. the debt. The more you know about what bankers want to see in a credit application, the better prepared you’ll be to get credit for your business. A business plan can also help you get financing for your business. For example, for an SBA loan and some larger business loans and lines of credit, lenders may require a formal written business plan before granting credit.
By creating or updating a business plan, seeking mentorship opportunities, increasing knowledge, and preparing credit, more Latino entrepreneurs can be successful.
1 2019-state-of-women-owned-businesses-report.pdf (q4cdn.com)
2, 3 Main lessons from the 2020 report on the state of Latin American entrepreneurship | LatinasinBusiness.us (English only)
* Links available only in English
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SOURCE Wells Fargo