More than 4 million Hispanic businesses in the US contribute more than $800 billion to the economy every year. The number of Latinx entrepreneurs is growing three times faster than any other group. A lack of understanding of the U.S. financial system, a shortage of connections, and an anxiety to take on debt all take a greater toll on Latinx entrepreneurs than on people from other ethnic groups. Rodriguez has been researching the Hispanic market for more than 15 years.
What are the most common mistakes of Hispanics?
Banking, credit, and taxes are the main topics. The fear of debt is the most difficult to overcome. We think asking for a loan shows we need help. When we are in trouble, we only think of debt. We don't want to put money in the bank. Many Latinx immigrants think that the government will take their money because they are not originally from here.
What pitfalls should founders avoid?
Loan sharks. They are fast and don't need financial paperwork. Bad advice from non experts. It is difficult to unlearn wrong information if we don't know what is best for our businesses.
What is the best way to build a network?
You can find professional gatherings with the words Hispanic or Latinx in the invites. There are many initiatives by local governments and big companies to reach Latinx. The best way to listen is to listen to people who started with nothing. Valuable information can help you better understand the system.
Is it possible that Latinx can run successful businesses?
It's more difficult, but also possible. I was told to open a company under my name so my employers could pay me. I stopped applying for jobs when I opened a limited liability company and started asking for business. I was able to manage my taxes and create my own income.
Latinx business owners need more.
Legal advice and accounting professionals. A lot of businesses don't know they need a lawyer. Business owners are paying a lot of money for electricity because they didn't read their contract and their landlord told them they are liable to pay the entire bill Our community is unique in that we don't value professional advice until we are in really bad shape.
What advice would you give to people who are hesitant to take the plunge?
The best time to start is now. From your phone, you can start small. You can start a business in the U.S. in a week. Business advisers can help you go from zero to sales in less than a month with all the necessary paperwork.
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