Is Miami the Blueprint for Latino-Owned Business Success? Here’s How to Follow Their Lead 

Is Miami the Blueprint for Latino-Owned Business Success? Here's How to Follow Their Lead 

Across busy neighborhoods in Miami and beyond, the hum of Latino-owned businesses tells a story of grit and ambition. They’re the bodegas, tech startups, construction firms, and family-run restaurants that keep local economies alive. The reality is that their contribution to the U.S. economy is essential. Yet, many of these businesses face barriers that prevent them from fully realizing their potential – and this is something that affects many other Latino-owned businesses across the nation. 

Recent research by McKinsey reveals a striking contrast between the entrepreneurial spirit of Latino communities and the hurdles they encounter. Latino-owned small businesses are growing faster than those of their non-Latino counterparts, but they still struggle to access funding, scale operations, and retain talent. The gap between their potential and their current reality is a $1.4 trillion opportunity waiting to be unlocked. 

What Experts Say

Lucy Perez, Senior Partner at McKinsey & Company, tells BELatina that Latino entrepreneurs are younger, dynamic, and more eager than ever to drive change. However, barriers to funding remain a significant challenge. Latino entrepreneurs face loan approval rates that are 15 percent lower than those of their non-Latino, White counterparts, even when applying for similar amounts. This gap isn’t just a financial issue. It’s also a missed opportunity for economic growth across communities. 

In Miami, the landscape looks a bit different. The city offers a blueprint for how Latino businesses can thrive when the right ecosystem is in place. Latinos make up nearly half of the city’s population and own over a quarter of its small businesses. Many of these businesses generate more revenue per employee than their non-Latino peers, thanks to higher educational attainment levels and participation in industries with higher profit margins. The success story of Miami shows what can happen when entrepreneurs have access to education, networks, and funding. 

Latino-Owned Businesses Succeed in Miami – How Can This Happen Elsewhere?

But why isn’t this success story universal? Across the country, Latino business owners often operate in industries with lower revenue potential. Many lack the support networks that can help them navigate complex business landscapes. And too often, they’re held back by cultural or language barriers that can make it difficult to secure loans or expand operations. 

Perez outlines several policy changes that could help bridge these gaps. First, increasing access to capital through government-backed loans and community funding programs could provide a lifeline to businesses that are otherwise overlooked by traditional banks. Second, mentorship programs and partnerships with larger corporations could provide Latino entrepreneurs with the resources they need to grow. Third, capability-building initiatives, such as business skills training and scholarships, could help entrepreneurs close the educational gap and move into higher-revenue industries. 

Latinas Are Key to Small Businesses in the U.S.

Latina entrepreneurs, in particular, represent a growing force within the small business community. From 2017 to 2021, Latina-owned businesses accounted for 31 percent of all new Latino-owned employer firms. Their businesses are growing faster than those owned by non-Latina, White women, a trend that highlights the increasing economic power of Latina entrepreneurs. 

The rise of Latina entrepreneurs offers a glimpse of what’s possible when barriers are reduced. With the right policies and support in place, the next decade could see a surge in Latino-owned businesses across the U.S., creating millions of jobs and boosting economic growth. The success stories emerging from cities like Miami provide a roadmap for how to make this vision a reality. 

The Roadmap

Yet, the work doesn’t stop there. Financial institutions must address systemic biases in lending practices. Policymakers need to ensure that educational opportunities are accessible to everyone. And local communities must continue fostering the kind of ecosystems that have made places like Miami a hub for Latino entrepreneurship. 

Perez leaves no doubt about the urgency of this work. “Unlocking the potential of Latino-owned small businesses presents an opportunity equivalent to $1.4 trillion in additional revenue for the economy,” she says. “That’s a future well worth fostering.” 

The numbers speak for themselves. The potential is there. All that’s needed is the will to create an environment where every entrepreneur has a fair shot at success. Beyond closing gaps, it’s about building a stronger, more inclusive economy for everyone. 

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