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SUMMARY: This report provides timely updates on trends in Latino entrepreneurship. It examines characteristics of U.S. Latino businesses, identifies business approaches that correlate with Latino business success, and highlights Latino entrepreneurs’ attitudes toward and access to capital.


TALKING POINTS:

  • Latino-owned businesses make up a substantial and growing segment of the U.S. economy, contributing 2.8 million jobs in 2016 and over $510 billion in annual sales.
  • Among all Latino-owned businesses, 9% are employer firms, which generate 80% of Latino-owned business receipts. 
  • Among those who applied for financing, scaled firms had all of their funding approved at nearly twice the race of unscaled Latino-owned firms
  • Lattino-owned businessed outpace the growth rate of all other groups. 


DATE OF PUBLICATION: January 2019


AUTHORS: Marlene Orozco (Lead Research Analyst for SLEI), Paul Oyer (Fred H. Merril Professor of Economics at the Stanford Graduate School of Business; and SLEI Faculty Advisor), and Jerry I. Porras (Lane Professor of Organizational Behavior & Change Emeritus at Stanford Graduate School of Business; SLEI Faculty Advisor; and Latino Business Action Network Cofounder)


ABOUT THE RESEARCHER: Stanford Latino Entrepreneurship Initiative (SLEI) is a research and education collaboration between Stanford University and the Latino Business Action Network (LBAN), a 501(c)(3) not-for-profit organization located in Palo Alto, CA. SLEI is housed at the Stanford Graduate School of Business.


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