Bloomberg News states that more than 4.7 million businesses owned by Hispanics exist in the United States and add as much as $800 billion to the economy annually. The number of Latinx business entities is growing by as much as three times every year as compared to any other group, which was reported by researchers at Stanford Graduate School of Business.
However, few factors like little understanding of the financial system in the US, shortfall of connections, and an anxious sense of uncertainty to take on debt adversely affect the Latinx entrepreneurs as compared to the other groups, as per Marcelo Rodriguez, who is the founder of InQmatic, a company that extends loan and financial counseling to more than 3000 Spanish speaking business entities.
Bloomberg News also reports that Rodriguez has conducted extensive research on the Hispanic market set up for 15 years and more sat down to discuss the problem.
The following aspects were discussed.
What are the commonly made mistakes by Hispanic entrepreneurs?
Mistakes are related to taxes, credit, and banking. Hispanic entrepreneurs believe that taking on a debt implies that they are not performing well and require help. They think of debt only in trouble, not at the beginning of any venture. Since many Latinx are immigrants, there is a fear that the government will be after their money.
What are the pitfalls that must be avoided by the founders?
Loans sharks are one thing that must be steered clear of as they do not require financial paperwork. Aside from that bad advice from ones that are not experts.
What is the best way of building a network?
You can look for the events that are organized by the industry and then attend all the professional events with Hispanic or Latinx words mentioned in the invites. There are several initiatives to which government, big companies, and consulates want to reach out.
Can undocumented Latinx run a business successfully?
It is difficult but it is possible, reports Bloomberg News.
What do Latinx business owners require other than this?
Legal advice and accounting professionals to be precise. Many businesses are not even aware of the fact that they require a lawyer. Many business owners are shelling out a lot of money for paying high electricity bills since they did not read in between the lines and are paying the electricity bill for the entire building instead of their part.
What advice is required other than the above?
The entrepreneur can start with small steps by starting from home or over the phone. The barriers to entering the United States are low so getting into a business is easy. Aside from that necessary paperwork is also required, reports Bloomberg News.
