It’s no secret that Hispanic people have made and continue to make contributions in this country that influence us every day, so it’s only right that we take a month of the year to focus on and honor them. Since 1989, we have celebrated National Hispanic Heritage Month from September 15 until October 15.
In industry, Latinx small-business owners are taking the nation by force. Despite facing up against not only competitors but also blatant racism, in some cases, Latinx-owned businesses make up the fastest-growing group of entrepreneurs in the United States. A 2018 study from Stanford University showed that in the last 10 years, the number of total business owners in the United States grew only 1%, but the number of Latinx business owners grew by 34%, with no signs of stopping.
Strength and Resilience
It’s a heartbreaking reality that individuals who are BIPOC (Black, Indigenous, and People of Color), Hispanics included, face an uphill battle against racism when starting a business. BIPOC tend to have less generational wealth than white people, but policies in place currently favor the affluent and continue to widen the gap even more. But many BIPOC individuals have not let any of that stop them.
Hispanic people also tend to have lower salaries, on average, than white people. This starts a vicious cycle of lower credit scores, which leads to higher interest rates or even being turned down for traditional business loans.
Despite going against all odds, the average revenue growth of Latinx-owned businesses outpaced the growth of the country’s economy at an incredible 14%.
A Culture of Community
When denied bank loans, some Hispanic entrepreneurs have been forced to fund their budding businesses with money from their own pockets. Others have been fortunate enough to be surrounded by a supportive community, where friends and family would loan start-up money to help these businesses get started.
The strong community has also bled into community banks. Hispanics get loans from local banks at a higher rate than they do from national banks, since relationships between a community full of Hispanic business owners and local banks grow stronger, and those local banks work harder to network with the businesses in their own communities.
Successful Hispanic Entrepreneurs
Here are some of the most successful Hispanic entrepreneurs who have left their mark on history and culture:
- Sofia Vergara. Not only is Sofia Vergara a talented actress, but she also co-founded Latino World Entertainment, a multi-million-dollar media and talent agency.
- Geisha Williams. Geisha Williams is CEO and President of PG&E, and more impressively, the first Latina to ever lead a Fortune 500 company. PG&E is one of the largest energy companies in America, and since Williams has taken the lead, she has overseen the company’s move to get nearly 33% of its energy from renewable sources.
- Jessica Alba. The Honest Company and Honest Beauty were founded by Jessica Alba, and her work there got her on the list of Fortune’s 10 most powerful women entrepreneurs.
- Alberto ‘Beto’ Perez. Did you know Zumba was founded by a Hispanic man? Alberto ‘Beto’ Perez started as an aerobics instructor who was inspired to start Zumba while he improvised new exercise techniques for a class. Zumba is now a worldwide exercise sensation with over 15 million people currently taking Zumba classes.
Our Hispanic Ties
Here at Lux Beauty Club, we are proud to be captained by our own Hispanic business owner, Victoria Flores, as she leads out in the CBD and beauty and wellness industries. Victoria began a business selling hair extensions after a successful finance career. After realizing the benefits of CBD in her own beauty and health regimen, she pivoted and started Lux to share CBD-based products with the world.
While there are other CBD products out there, Victoria’s are made from the highest quality “clean” ingredients from a supply chain that her company owns. They’re USA-made and sourced from FDA-certified farms. No toxic ingredients or weird stuff!
Cast Your Vote
Every dollar you spend is like a vote you cast, telling the world and the economy what is valuable to you. When you are conscious about where your money is spent, you can help empower Latinx business owners to succeed.
This month, as you celebrate Hispanic heritage, go out of your way to show some love to your favorite Hispanic-owned businesses (you can find a great list here if you don’t know where to start). Treat yourself to some goodies while you’re treating Hispanic business owners to your business.