The wilting economy has been challenging for every small business owner, there is no doubt about that. Some business owners, however, have weathered that storm better than others. According to Gabriel Sanchez Zinny over at the Huffington Post, Hispanic business owners have succeeded at a time where many others have been forced to close their doors.
The Hispanic population has made leaps and bounds in the last couple of decades – as recently as the 1980’s there were only 400 Hispanic owned businesses in the US, bringing in just $1 million combined. In 2011, they accounted for roughly $37.8 billion. That’s massive.
Nearly all Hispanic-owned business sectors saw increases while other businesses were on the decline. The service sector saw a 41 percent increase in 2011 and wholesale grew by 19 percent in the same year.
That growth is perhaps even more impressive considering the many disadvantages that Hispanic business owners face – including a language barrier for some, a lack of business start-up information, and challenges obtaining traditional financing options.
The majority within this segment have previously had to rely on family, credit cards, or life savings for funding, thanks to lower approval rates from traditional lenders – due in part to a higher level of carried debt and a higher perceived credit risk. As the Hispanic business population continues to grow, we will likely see more and more Hispanics turning to alternative and specialty lenders for the financing their businesses need to succeed.
It’s refreshing to see a minority segment that has been so underrepresented in American business for so long finally breakthrough in a major way. There’s no doubt that Hispanics in will only continue to prosper in small business as we make our way into 2013.
As always, if you’re a Hispanic small business owner (or any small business owner for that matter), be sure to check out Direct Capital’s financing options.