Forbes reports that Revenue of Latino-Owned Businesses Outpaced Other Firms.
Surprisingly, Forbes is not in this alone; other companies are sharing this opinion. JPMorgan Chase claims Latino-owned businesses are the U.S. Economy’s Best Bet. Similarly, Stanford Business calls Latino business to be a Key to a Stronger U.S. Economy.
This gets most of the people asking the question:
What made a small-marginalized community in the USA an unstoppable force and possibly the best thing that can happen to the US economy?
Let us look at this incredible journey of growth together and evaluate some of the reasons Latino businesses are outperforming their competitors.
Top 5 Reasons Latino-Owned Businesses Outperform Their Competitors
No Shame or Stigma
Most Hispanics that we see today come from immigrant families with very limited financial resources. Parents from these families encouraged their kids to become more financially independent right from the get-go.
This is the reason hustle culture is very common in the Hispanic community. Thanks to this culture, kids are not shamed when they start with simple, low-paying jobs. Parent and the community encourage their kids when they start any business.
Eventually, kids starting with basic jobs develop a much better business sense that helps them become successful entrepreneurs in the future. Moreover, Latino business owners learn from life experience, so they have a much better chance of bouncing back after a setback.
In fact, a report by hispanicwealthproject states that Hispanic businesses came back stronger after economic setbacks during COVID-19. Not only they were able to bounce back faster but also their evolution and growth were incredible.
Better Understanding of Audience
For a long time, the Latino community has been treated as the secondary audience by brands. Companies intentionally rated Latinos based on their buying power, putting them in a position of no bargain.
However, after the Latino community in the US grew in number, became strong financially, and got more educated, their market power shifted. Now, when Latinos are in a position of power, they strongly relate to marginalized communities, making sure they make everyone feel included.
From offering customizing products to becoming the voice and face of marginalized communities, Latino-owned businesses are trying to accommodate every ethnicity, culture, and social status.
Moreover, Latino businesses also brought Spanish into the spotlight, making sure Hispanics would feel right at home. Thanks to this initiative, even mainstream brands in the US like Xfinity also started targeting the Spanish community through the use of Spanish.
Today, Xfinity offers a dedicated Xfinity servicio al cliente where Hispanic customers can seek guidance in their native language without struggling with English.
Education and Dedication
Just a few generations ago, Hispanics were less in number and less educated. Most of the Latino immigrants faced immense pressure to do better with limited resources. Eventually, when the next generation of Hispanics came into existence, they were raised to value education and hard work.
Today, the Hispanic population has improved significantly in literacy. A report released in 2022 concluded that 45% of Hispanic adults, aged 25 and older, have at least some college experience. These numbers have shown immense growth compared to just 36% in 2010. Moreover, this number is expected to grow more in the coming years.
Another important thing that has helped the Hispanic population is their hard work and dedication. Parents encourage their kids to work harder and start some kind of side hustle at a young age. Eventually, this helps Hispanics become incredible business owners. These owners are more involved and participate in tasks rather than just assigning tasks and giving orders.
Family and Community First Approach
Impressing a Latino parent is one of the most difficult tasks. Most Latino dads will test your idea, product, and business model more harshly than any investor in the market.
As a result, you will get honest opinions that might make you feel demotivated at first but save you from humiliation in the market.
Moreover, Latino communities are very tight-knit. Most of the elderly people in Latino communities work as advocates of the brand and product when they actually like it.
This means that Latino businesses struggle to find their ground, but once they do, the unwavering community and family support help them to grow exponentially.
More Digital Savvy than Ever
Previously, when the Hispanic community had a low literacy rate, they generally struggled with technology. However, things have changed now. Young Latinos are much more tech-savvy and have a better understanding of community-based platforms, digital devices, and social media networks.
Another important factor to consider here is that the majority of Hispanics living in the USA have their families in different countries. In this case, social media works as an ideal communication platform. This is the reason Hispanics are chronically online and well aware of all the global news and changing world dynamics.
Moreover, the Nielsen report concluded that Hispanics spend longer time on smartphones, social media, and digital devices, so they are much better with digital marketing strategies. All these factors make Hispanics much more tech savvy which comes in handy when they start a business.
Latino-Owned Business Doing Wonders
- Ceremonia
- Onset
- Nopalera
- Lorenza Jewelry
- El Chilito Hot Sauce