![]() Instead, the structures that exist today appear to systemically underfund these businesses. Compared with their white-owned peers, LOBs outpace WOB revenue growth at every business size. The root of the problem isn’t the investment potential of LOBs. But if today’s LOB population were equitably funded with non-Latino WOBs, they could generate $1.4 trillion in additional revenue today and $3.3 trillion in additional revenue by 2030, according to Bain research, and corroborated by SLEI. ![]() Without the ability to seek equity for growth or affordably priced debt from banks, LOBs remain significantly underfunded compared with similar WOBs, limiting their ability to scale. ![]() In spite of their rapid growth, Latino-owned businesses are not getting their fair share of capital from the investment community. By 2026, 13% of employer LOBs expect to have 100 or more employees compared with just 8% of employer WOBs, according to the SLEI annual survey of employer businesses.Īnd yet there is a serious problem that prevents LOBs from reaching their full potential. Employment among LOBs grew two times faster than non-LOBs between 20. ![]() And this growing, young, and productive Latino cohort is funding an increasing share of our financial system, with the median Latino retirement account achieving a compound annual growth rate (CAGR) of 9% between 20, compared with zero growth for all families in the US, according to the US Survey of Consumer Finances.Įmployment among Latino-owned businesses grew 2x faster than non-Latino-owned businesses (from 2014 to 2016)Īnd these LOBs are creating jobs in the process. Latinos accounted for 82% of growth in US labor force participation from 2010 to 2017 despite representing less than 19% of the total US population. Latinos have a median age of 30, compared with the white population’s median age of 44. This growth is driven, in part, by their younger age structure. Latinos are a rapidly growing cohort, with the US Latino population surpassing 60 million in 2019 and set to double over the next four decades. The total economic output of US Latinos was $2.7 trillion in 2019, making US Latinos the equivalent of the seventh-largest economy in the world. Latino-owned businesses (LOBs) are an overlooked opportunity in the current US economy.
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