Businesses founded by Latinos in the United States have had a better recovery compared to companies founded by white people, after the worst years of the pandemic.
This was shown by the results of the Annual Report on Latino Entrepreneurship carried out at Stanford University, which was published this Thursday.
The objective of the report is to identify how businesses opened by Latinos in the United States have behaved, a segment that corresponds to the fastest growing in the countryaccording to the research.
The data shows that 19% of businesses founded by Latinos said they have recovered from the negative impacts of the pandemic and they are doing the same as before the closure of the world economy; versus 18% of businesses that were opened by white people.
But not only that, but 23% of the businesses consulted said that, even, they are better than they were before that the pandemic began; versus 18% of companies that were founded by white people.
According to the results, these companies have achieved expanded customer bases and greater participation in government contractsas the most relevant factors for the recovery of Latino businesses.
However, the investigation found that government contracts awarded to Latino companies areon 31 times less compared to government contracts that are given to white-owned businesses.
For the report, Stanford researchers surveyed more than 10,000 companies with at least one employee.
The findings showed that, despite the hard blow that the pandemic dealt to Latino businesses, they have now achieved rapid growth and increased revenue as well.
In this regard, the research data showed that Latino companies had an average growth of 25%, measured between 2019 and 2022while companies founded by white people had 9% growth in those years.
“This growth is not only in the number of employer companies, but also in the income they generate and even in the payroll,” said Barbara Gomez Aguinaga, associate director of the Latino Entrepreneurship Initiative at Stanford University, in a report for Axios. .
However, not all data is positive for businesses opened by Hispanics in the United States, according to the report’s results.
There are two problems they are mainly facing: difficulties accessing credit and staff shortages.
According to the research, banks deny loans or offer higher rates than white-founded businesses, even though the founders’ credit scores are similar.
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Source: La Opinion
