Latino entrepreneurs and business leaders from across the US gathered at Stanford University for the release of the latest research report on the 2018 State of Latino Entrepreneurship.
By Arthur Garcia, President, ATAX Franchise Inc
Latino entrepreneurs and business leaders from across the US gathered at Stanford University for the release of the latest research report on the 2018 State of Latino Entrepreneurship. Since 2015, the Stanford Latino Entrepreneurship Initiative (SLEI) has annually collected data on Latino business owners across the United States to provide timely updates on trends in Latino entrepreneurship. This year, they created an ongoing research panel of more than 1,000 Latino business owners so that the data collection in future years will capture the growth of established businesses over time.
This report provides academic researchers, policymakers, and business leaders with insights into Latino-owned businesses as a group and as a number of subgroups and profiles. It includes differences in growth and funding experiences by gender, nativity, region, industry, size, and other personal and business characteristics.
Independent of Stanford University, the Latino Business Action Network is a nonprofit entrepreneurship organization based in Palo Alto, California. Its vision is to strengthen the United States by improving the lives of Latinos through entrepreneurship education and a support network. LBAN accomplishes this by empowering Latino communities to substantially scale firms that create jobs, develop leaders, and spawn a new generation of Latino companies. LBAN’s goal is to double the number of large Latino-owned businesses by 2020.
Through a collaboration with SLEI, LBAN has helped to create the database of over 1.3 million U.S. Latino-owned companies. Additionally, LBAN complements the research findings by offering education and resources to Latino entrepreneurs to help reach our common goals. The Stanford Latino Entrepreneurship Initiative - Education Scaling program is a nationally available six-week online education course for business leaders interested in building highly scalable companies. The program provides them with the knowledge, skills, mentors, and access to capital they need to become successful.
As a leading tax and financial services franchise, ATAX has been serving the needs of the Latino community for more than 30 years. Founded by Rafael Alvarez in Washington Heights New York in 1986 he saw the needs of the community and set out to help them. As an alum of the Stanford Latino Entrepreneurship Initiative Program. We are honored that Rafael was selected to speak on the panel. As the first Latino-owned tax and business services franchise in the US, we have seen first hand the importance of Latino-owned businesses on the economy. The U.S. Census Bureau reports that while the total number of businesses in the U.S. declined from 2007 to 2012, the number of Latino-owned businesses grew by 46%. Previous SLEI reports have detailed growth trends in the number of U.S. Latino-owned businesses, estimated to be around 5 million or 17% of the total numbers of small businesses in the US.
Like most small businesses, cash flow issues and access to capital are two challenging factors facing Latino-owned businesses. They use various types of financing to grow their business but most rely on savings and loans from friends and family as opposed to external sources such as bank loans, venture capital, and private equity. At ATAX, we know that having sound financials and updated books helps equip our clients with seeking external funding sources. All clients are provided with access to their books in real-time via Xero and receive financial statements at a minimum monthly frequency. Whether a client is preparing to apply for a loan or pitch their product to potential investors we are there to support and guide them.
As proud supporters of the SLEI Program and LBAN, we want to do our part to see Latino Business owners succeed. As a graduate of the SLEI Scaling Program Cohort 5, the ATAX team was in attendance to see Rafael Alvarez inducted into the Alumni Hall of Fame. We encourage you to review the full research report (Download here) and join us in supporting small businesses across the US.
Rafael Alvarez, Founder & CEO of ATAX Franchise with Mark Madrid, CEO LBAN