A report by three groups of congressional lawmakers said that the roughly five million Latino companies in the United States contribute more than $800 billion to the economy each year.
The Latin Business Analysis was conducted by the Joint Economic Conference, the Latin Caucus, and the House Small Business Committee.
The group noted that “in the decade leading up to the pandemic, the number of Hispanic business owners increased by 34 percent, compared to just 1 percent among non-Hispanic business owners, and that one in four new businesses started by entrepreneurs.” .
“Hispanic companies drive economic growth and are an integral part of America’s economic dynamism,” said Virginia Democratic Representative Don Baer, chairman of the Joint Economic Committee.
Bayer noted that while many small Latin businesses have remained open during the pandemic and made it easier for Americans to access the goods and services they need, many of these companies have “faced obstacles in accessing economic relief.”
According to the report, fewer than one in four Latino-owned businesses receive more than $100,000 in funding from national banks, compared to nearly half of white-owned businesses.
California Democratic Congressman Raul Ruiz, who chairs the Hispanic Caucus, noted that “Hispanic businesses employ three million workers with an annual wage of more than $100 billion.”
The report indicated that 53.2 percent of these companies employ 1 to 4 people; 26.2 percent have 5 to 19 employees and 8.4 percent have more than 20 employees.
Legislator Nidia Velasquez, Democrat of New York and chair of the Small Business Commission, said Hispanic businesses “face obstacles that prevent them from reaching their full potential, and Hispanic entrepreneurs have fewer access to capital, federal contracts and valuable training.”
