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As we celebrate Hispanic Heritage Month this year, it’s a great time to recognize the many contributions of Hispanic small business owners. And there really are many.
Olson
According to LDC’s 2021 US Latino GDP Report, Latinos contributed $2.7 trillion to the United States, equaling the world’s seventh largest economy, and growing 57% faster than the US economy. From 2010 to 2019, US Latino GDP was the third-fastest growing of the 10 largest GDPs in the world, and the US economy ranked fourth. Latinos also account for 68 percent of U.S. labor force participation growth, driven by Latino business owners. In the year As of 2019, Latina women owned 18 percent of women-owned businesses, and between 2014 and 2019, Latina companies grew 40 percent (Latinas in Business Inc.). These are significant numbers and show the impact Latina business owners are having on the nation’s overall economy.
There is no doubt that these business owners are helping to boost the US economy, but we all know that they have been hit hard by the impact of the pandemic and the changes associated with higher interest rates and inflation. However, these tips can help many Latino business owners or aspiring entrepreneurs get started or get to the next level.
Get the right guidance and information
Many women may not know where to find reliable information when starting a business or making critical business decisions. The good news is that there are many free resources and tools* available to help educate female business owners. The SBA.gov* website is another good place to start. It even offers a version of the site in Spanish. Additionally, the Minority Business Development Agency connects women to resources, events and opportunities through the Women of Color Enterprise Initiative*. Finally, the US Hispanic Chamber of Commerce (USHCC)* has more than 200 local chapters designed to support aspiring Hispanic business owners, as well as dedicated Latino entrepreneur programming.
Prepare a business plan
Having a good idea is not enough! Developing a business plan is the first key step for any business owner. An effective plan can help you prioritize how you spend your time and money and set measurable goals. It also helps to better anticipate and avoid potential risks by identifying current or future obstacles. For example, due to the effects of Covid-19, you may need to create additional online offerings or develop a digital presence for your business. Some of you may need to change relationships with supply chains and suppliers or reduce hiring due to inflation. Regardless, it’s time to assess how you’ve adapted to the current situation, assess which of these adjustments you want to build on going forward, and map it into your plan.
Get the support of a consultant
The past two years have reinforced what we’ve always known: it takes a village. As women entrepreneurs continue to navigate the challenges and inflation they face post-Covid-19, connecting with mentors and other professionals is one of the most important ways to share knowledge, exchange best practices and learn from each other. Our company recently partnered with the Nasdaq Entrepreneur Center to help women entrepreneurs overcome key business challenges through the Milestone Mapping Coaching Circle*, a 12-week mentoring program that helps them develop a peer support network and connect with mentors. Interested female business owners can apply to participate, and if accepted, will be placed in the circle.
Be ready with credit
Once you have a business plan, meet with advisors and other professionals, and do your research, arranging credit is an important next step before you can get business financing. It’s important to work with a bank that offers tools and resources to make financing easier to understand, and a banker who can show you what your business needs to get approved for a loan. Before applying for a small business loan or line of credit, your bank will want to see that your business generates steady cash flow, has a low level of debt, and is in a strong financial position to handle debt payments. The more you know about what makes a strong credit application, the better prepared you will be to pursue credit for your business. A business plan can help you get business financing. For example, lenders for SBA loans and some larger business loans and lines of credit may require a formal written business plan before extending credit.
Many Latino entrepreneurs can find success by creating or updating a business plan, looking for mentoring opportunities, building expertise, and arranging credit.
Ryan Olson is general manager of Wells Fargo’s small business operations in Boise, Idaho.
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