Latino Entrepreneurship Trends Revealed in New Research Report from Stanford Graduate School of Business
STANFORD, Calif.–(BUSINESS WIRE)–The Stanford Latino Entrepreneurship Initiative (SLEI) at Stanford Graduate School of Business (GSB), in collaboration with the Latino Business Action Network (LBAN), released a report covering the latest trends in Latino entrepreneurship in the U.S.
For the past seven years, SLEI has collected survey data from Latino-owned businesses across the country. The latest report is the largest survey to date, with 15,000 business owners surveyed, including 7,500 Latino-owned employer businesses and 7,500 Non-Latino, White-owned employer businesses.
“Latino entrepreneurs have shown their resilience over the past year, with many growing their companies organically and opening businesses in a variety of industries,” said Marlene Orozco, PhD, Associate Director, SLEI. “Our goal in collecting this survey data is to demystify any preconceived notions we have about Latino-owned businesses, illustrating that these are viable, prominent workplaces that are growing our nation’s workforce exponentially.”
The report highlights key areas of Latino entrepreneurship, including firmographics, financial data and employee statistics from Latino businesses and the overall ongoing effect of COVID-19 on the Latino entrepreneur community.
Key themes and findings include:
- Firm & Employee Growth: The number of Latino-owned employer firms has grown 35% in the last 10 years compared to 4.5% growth among White-owned firms. In addition, Latino-owned businesses are increasing their number of employees at a dramatically faster rate than White-owned employer businesses (55% vs. 8% since 2007).
- Tech Focus: Latino-owned businesses are as likely as White-owned businesses to be in the technology industry.
- Career Advancement: Latino business owners are more likely to provide opportunities for the growth and advancement of their employees than White business owners.
- COVID Bright Spots: Latino-owned businesses are more likely to make proactive, strategic business changes to mitigate the negative challenges of the pandemic.
The report’s results and trends were presented virtually at the SOLE Forum on Friday, Jan. 28. Speakers included SLEI’s Associate Director Marlene Orozco, Stanford GSB’s Dean Jonathan Levin, U.S. Administrator of the Small Business Administration Isabella Casillas Guzman, as well as several entrepreneurs from the latest survey as they discuss the report’s findings and their implications for the future of Latino entrepreneurship.
To view the forum recording, please visit: https://youtu.be/XWfn_O5dH08.
To view the published research report, please visit: https://www.gsb.stanford.edu/faculty-research/publications/state-latino-entrepreneurship-2021.
About Stanford Latino Entrepreneurship Initiative Research Program
SLEI operates a research program that explores and expands knowledge of the Latino entrepreneurial segment of the U.S. economy through research, knowledge dissemination, and facilitated collaboration. The program, jointly supported by LBAN and Stanford GSB’s Center for Entrepreneurial Studies, conducts an annual national survey to assess the current state of U.S. Latino entrepreneurship and is curating a significant panel of Latino entrepreneurs to enable longitudinal research to understand trends over time.
About Stanford Latino Entrepreneurship Education Scaling Program
SLEI also operates an education program (SLEI-Ed) as a collaboration between Stanford GSB Executive Education and LBAN. It is an opportunity designed for U.S. Latino business owners who generate more than $1 million in annual gross revenues or have raised at least $500,000 of external funding. This eight-week immersive program provides business owners with education, enhanced networks, personal mentorship, and a better understanding of accessing and managing capital to scale their businesses. The program has almost 900 SLEI-Ed Alumni from 39 states and Puerto Rico who collectively generate over $5.4 billion in annual gross.
About Latino Business Action Network
LBAN works to make America stronger by empowering Latino entrepreneurs to grow large businesses through entrepreneurship research, education, and networks. Victor Arias, Jr. is Chairman of the Board, Professor Jerry I. Porras, Chairman Emeritus, and Arturo Cazares, CEO. Learn more: http://www.lban.us