Cautious optimism for Latino businesses, entrepreneurs

The Great Recession hit wage earners across the board, some more than others.

A nationwide survey of 600 Latinos conducted in 2009 by LatinoMetrics revealed that half of Latino families were bringing in less income than the previous year, with one in three making the same money and only one in seven making more greenbacks.

Survey data also revealed that six in 10 Latinos were making ends meet; four of those indicated it’s not easy but they’re getting by. One in 10 said things are looking up, and another one thought all was moving along swimmingly.

The younger Latino maintains the most positive outlook on the economy, while those in the over-40 age bracket and making less than $20,000 per year are particularly concerned about finances. This latter group is also more likely to report that they have witnessed more Latinos leaving the United States recently than coming in.

“Hispanics have been hit hard by the Great Recession,” according to Carlos Garcia, president of Garcia Research, in a summary report of the survey findings “The lowest income, Mexican-origin, mono-lingual Spanish segment (is) seeing the worst of it. Still this community has strong family support systems to help them weather such situations. Perhaps due to that support, they are largely getting by and optimistic for the future.”

Latino economic prospects

Latinos account for between 15 percent and 16 percent of the country’s overall population. In Colorado, that number is closer to 21 percent. Hispanics represent the fastest-growing group in the nation in a number of categories, including consumers, employees, business owners, taxpayers and voters, the Hispanic Association on Corporate Responsibility has reported.

While analysis from the Pew Hispanic Center indicates that economic prospects for Latinos are particularly tied to the presence of a strong economy as well as skills training, pay for native-born Latinos and college-educated ones is catching up to those of white Anglos.

For example, the average full-time annual salary of $31,000 – approximately 60 percent of what non-Latino whites made in 2000 – is what Latinos earned. Since the average pay of whites increased sharply at that time, the pay gap between white and Latino employees went up by $7,000 for males and $5,000 for females. According to the Pew Hispanic Center, the earning gap “reflects the impact of recent Latino immigrants who comprise 40 percent of all Hispanics.”

And while over-time wages for immigrants do improve, what keeps their earning potential from rising is the lower average education they hold. Studies show that all or almost all wage gaps between white and Latino workers are due to gaps in education and English language skills. The Center asserts that for Latino and non-Latino white workers who possess similar skills, there’s nearly no wage differential.

Outlook and opportunities

The projected outlook for Hispanic-owned businesses is not insignificant. According to a report by HispanTelligence, “Hispanic-owned Businesses: Growth Projections to 2012,” Latino-owned businesses are estimated to grow 41.8 percent within six years to 4.3 million, representing a total revenue increase of 39 percent or $539 billion.

While the number of initiatives to assist Latino entrepreneurs and small business owners is on the rise, two particular resources are worth exploring: the federal Latino Technet Initiative and a book, “Latinnovating: Green American Jobs and the Latinos Creating Them.”

The Latino Tech-Net Initiative just launched in May. Spurred by the federal Recovery Act and administered by the Mission Economic Development Agency, the initiative supports 17 computer centers in 10 states are receiving computer equipment, software, and training to increase technology use by low-and moderate-income Latino families, small businesses and entrepreneurs to help create jobs and job opportunities. The Colorado Rural Housing Development Corp. in Del Norte is one of the participating agencies.

“This project will provide tools that enable businesses to conduct faster, more-efficient outreach and improve customer access through websites, emails, and e-commerce,” Anna Gomez, deputy assistant secretary for communications and information for the National Telecommunications and Information Administration, explained in a recent blog post. “Bilingual training will include basic digital literacy and business curricula specific to micro-entrepreneurs, including programs for budgeting, e-commerce and online marketing.”

In “Latinnovating,” author and 2010 Latina Style Entrepreneur of the Year Graciela Tiscareno-Sato features successful business enterprises led by Latino innovators in 10 different sectors: solar energy, packaging, printing, mechanical engineering, fashion design, software, ice and energy storage, eco consulting, venture capital, and social justice.

The next installment of this column will feature a mini-review of local and state resources, programs and organizations that can help Northern Colorado Latino entrepreneurs and businesses navigate their way through this lagging economy.

Ana Arias is principal of Arias Global Consulting, based in Fort Collins. She welcomes suggestions on topics you’d like to see covered in “Latino Voices” and can be reached at [email protected].

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