Economic Development

Turbo-Charging Latinx Business

June 1, 2020  • Institute Staff

“We are sitting on top of a positive detonator” of wealth creation, announced Ramiro Cavazos, the CEO of the US Hispanic Chamber of Commerce. Cavazos was discussing Latinx business potential at a forum hosted by the Institute’s Latinos and Society Program. Currently, Latinx companies account for one in four new US businesses and contribute $700 billion annually to the economy. Yet just 3 percent of Latino-owned businesses reach $1 million or more in revenue, leaving an estimated $1.47 trillion on the table compared with non-Hispanic, white-owned businesses. That’s why the Institute’s Forum on Latino Business Growth developed A Playbook for Scaling Latino-Owned Businesses with expert recommendations. The playbook promises “plays” to increase the number of scaled Latino businesses, create jobs, spur economic vitality, and drive wealth for more Americans. “The Latino business is not a foreign entity,” said Claire Kramer of the Federal Reserve Bank of New York at the publication’s February launch. “This is your neighbor, your colleague, someone you do business with.”