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President Biden proclaims May 1-7 as National Small Business Week

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SBA highlights National Small Business Week celebration “Building a Better America Through Entrepreneurship” with remarks from President Biden.

SBA, Isabel Guzman

SBA Administrator Isabel Casillas Guzman. (Photo Source)

The U.S. Small Business Administration (SBA)’s 2022 National Small Business Week celebrations will officially commence with a three-day virtual summit and an awards ceremony for honorees. SBA Administrator Isabella Casillas Guzman will kick off the national event on Monday, May 2, addressing registered participants during the educational, training, and networking event. To end the celebration, President Joe Biden will deliver pre-recorded remarks congratulating our National Small Business Week award winners and acknowledging the contributions of America’s 32.5 million small businesses to our Nation’s historic economic comeback.

President Biden, in his proclamation declaring May 1-7 as National Small Business Week, stated, “For generations, small businesses across America have shaped and embodied our Nation’s entrepreneurial spirit and driven our economy forward. Today, more than 32 million small businesses employ almost half of America’s workforce and represent the heart and soul of countless communities. During National Small Business Week, we celebrate America’s small businesses and their enormous contributions to American life and prosperity.

“When I first took office, the pandemic had devastated America’s small business community. Hundreds of thousands of small businesses had closed, main streets were shuttered, and millions more Americans were out of work through no fault of their own. Even with the creativity and resilience of small business owners and workers, COVID-19 took an incalculable toll on so many lives and livelihoods. That is why I made it a top priority to provide substantial, immediate relief to our Nation’s small businesses, giving them the tools, resources, and support they needed to reopen, rehire, and rebuild.

“My American Rescue Plan and other emergency relief programs distributed hundreds of billions of dollars to millions of small businesses to keep the lights on and keep workers on the payroll. My Administration also removed historic barriers to level the playing field for businesses across rural and urban America, especially businesses owned by veterans, women, and people of color. These efforts have helped millions of small businesses not only weather the pandemic but thrive.

President Biden and SBA Administrator Isabel Guzman. (Photo source)

“My Administration is committed to unlocking new opportunities to help small businesses grow and compete. Through the American Rescue Plan, our State Small Business Credit Initiative provides States, territories, and Tribal governments with resources to establish loan and equity capital programs to support entrepreneurs. In addition, the Bipartisan Infrastructure Law has created unprecedented contracting opportunities for small businesses in every community. Already, more than 4,000 projects have been announced to upgrade America’s infrastructure, creating significant opportunities for small businesses to grow. The law is delivering affordable high-speed internet access to every community — urban, rural, suburban, and Tribal — so every small business can use digital technologies and gain new customers across the country and around the world. The Bipartisan Infrastructure Law makes the Minority Business Development Agency within the United States Department of Commerce a permanent entity — seeded with a record amount of funding — so minority-owned businesses can receive tailored assistance for their unique challenges and access the capital they need to grow.

“I firmly believe that equal opportunity is the bedrock of our democracy. That is why my Administration is committed to using Federal procurement dollars to support firms owned by underrepresented people and to help small businesses build generational wealth. Last year, I announced a set of reforms to increase contracting opportunities for underserved businesses by up to 50 percent by 2025. We are also capitalizing on our historic investments in supply chain resilience and “Made in America” manufacturing so small businesses can innovate, compete, and build the products of tomorrow. To position small businesses for success in the long term, the United States Small Business Administration’s Community Navigator Pilot program is forging stronger partnerships with local organizations to get resources to underserved small businesses.

“Thanks to these initiatives and the resilience of the American people, America’s entrepreneurial spirit has never been stronger. New business applications grew by more than 30 percent over the course of the pandemic, with almost 5.4 million new applications in 2021 alone. More Americans than ever before — including more women and people of color — are following their dreams and starting new enterprises. My Administration will continue to support them, build upon this remarkable resurgence, and strengthen the foundation of our economy with America’s small businesses at the forefront.

You might be interested: Biden-Harris Administration expands SBA Pilot Program targeting access to capital for underserved entrepreneurs

“This National Small Business Week, let us renew our commitment to supporting our Nation’s small businesses. From local “mom and pop” shops to innovative start-ups, small businesses are pillars of our communities and the engine of our economy. By rebuilding our economy from the bottom up and middle out, we can maintain our global competitiveness and build a stronger Nation where everyone can succeed.

 

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A post shared by Isabel Guzman (@sbaisabel)

The President’s proclamation closes with “NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim May 1 through May 7, 2022, as National Small Business Week. I call upon all Americans to recognize the contributions of small businesses to the American economy, continue supporting them, and honor the occasion with programs and activities that highlight these important businesses.”

This year’s National Small Business Week virtual conference will offer free educational webinars, free business advice, and an opportunity to network with fellow business owners.

Registration is required; individuals interested in the conference can register here.

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov

silent auction

Register now for our Silent Auction for a chance to win big prizes from our donors! 

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This year’s Annual Fundraiser and Silent Auction is all about giving and receiving. For over a year, small businesses and entrepreneurs have struggled through hardships due to the Covid-19 pandemic. As an organization, Latinas in Business has been committed to amplifying the voices of minority small business owners and female founders through these turbulent times. 

Our fundraiser this year, titled Latinas Are Back in Business, aims to bring together our vibrant community of business owners and entrepreneurs to celebrate their success and share their stories and experiences throughout the pandemic.  

The Annual Fundraiser and Silent Auction will take place on December 8 from 4pm to 7pm, featuring special guests, celebrities and female founders. 

“We are extremely excited and grateful that many sponsors and members are joining us to amplify the voice of  Latinas suffering during the Covid-19 pandemic. Many female founders have suffered losses not only in their businesses but also in their families and friends.  We want to bring a little joy and hope to many female founders and tell them we will continue to support them,” Susana G Baumann. President and CEO, said.   

Join us for this free virtual event on Wednesday, December 8 from 4:00 pm to 7:00 pm EST –Zoom and Live streamed on Latinas in Business Facebook page. 

You won’t want to miss this event! Register Now! 

Register and make a bid for a chance to win big prizes! 

The silent auction portion of the event will feature big prizes from our donors and fellow minority business owners, female founders, and entrepreneurs. Register for the event and make a bid for a chance to win one of these prizes. Below is a list of our confirmed donors so far, with more to come! View the full auction page here. 

fundraiserCrate & Twine Gift Box donated by co-founder Tania Molina. Crate & Twine combines the efforts of two strong, independent small business women from two distinct fields of industry. Tania, creator and owner of Villakuyaya Organic Dark Chocolates, and Suany Baca, creator and owner of Sweets by Suany, came together with a vision of uniquely curated gift boxes centered around Tania’s chocolates and Suany’s cookies and sweets, and filled in with heart and soul items that give the receiver of the gift box a feeling of love and pride from receiving.   

Win one of these beautiful gift boxes to share with a loved one this holiday season. The gift box includes: Villakuyaya Chocolate Bars (3), Villakuyaya Hot Chocolate Jar, Villakuyaya Truffles (4), Sweet by Suany Alfajores Marplatences (2), Sweet by Suany Design Christmas Cookies (2), Sweet by Suany Choco Bomb by Villakuyaya Chocolate, Christmas Rompope, Palo Santo by South Rhoades Apothecary, Crocheted Mini Christmas Gnome by Lnkreactions, Fancy Matches by Candlefolk, and a Custom Candle. 

Create your Business or Career Vision for 2022! donated by Dr. Ginny A. Baro. Connect with Dr. Ginny for a private 1-hr. VIP strategy & business acceleration session AND a copy of Dr. Ginny’s latest best-seller “Healing Leadership” book.

During that one hour, Dr. Ginny Baro will cover the top 3 challenges and create a 12-month practical action plan based on what’s most important and meaningful to you!

Dr. Ginny A. Baro is an award-winning international motivational speaker, certified leadership coach, career strategist, and #1 bestselling author of Fearless Women at Work. Named one of the Top 100 Global Thought Leaders, she delivers coaching programs, trainings, and keynotes to global audiences to develop individual women and leaders and helps Fortune 500 companies build inclusive leadership dream teams.

Group Session for 6 donated by Erica Sandoval. Erica is a passionate licensed clinical therapist who is dedicated to promoting diversity, equity, and inclusion. She is also committed to amplifying the voices and businesses of Latinx social work leaders. 

This prize includes an inspiring group session for 6 people on “How to Set Boundaries & Cultivate Joy with Latino Families this Holiday Season” Or “Navigating Difficult Conversations.”

Additionally, winner will receive a copy of Erica’s book, Latinx In Social Work, #1 Best Seller New Release on Amazon. 

3-month Business Coach and Advisor to Grow! donated by Jennifer Garcia. Jennifer Garcia is a multi-faceted business professional and leadership coach with a passion for empowering people and transforming businesses. 

Jennifer is also the founder of Fluential Leadership, a business and leadership consulting firm focused on elevating small-to-medium-sized business performance through developing and executing growth strategies, recruitment, and retaining talent. 

Let Jennifer guide you and help you grow your business with this 3-month coaching package! 

Improve your Life with YOGA virtual classes! donated by Norma Colón. Win 2 Sessions of 5 classes each that will teach you simple techniques!

Norma Colón, a proud Latina, born and raised in The South Bronx, brings her passion for Iyengar Yoga to every class and private lesson.

A Certified Iyengar Yoga instructor since 1999, (with other prior certifications) Norma has been practicing and teaching Yoga for more than 40 years, in the tradition of Yoga Master B.K.S. Iyengar since 1987. Norma has studied with many of the world’s top Iyengar Yoga teachers as well as with her Guru, B.K.S. Iyengar and his daughter, Gita Iyengar. She continues her studies with Abhijata Iyengar, even on Zoom.

Private YOGA classes to jumpstart your wellness! donated by Norma Colón. Place a bid on this prize for a chance to win 3 private yoga classes with Norma, an experienced certified yoga instructor with over 40 years teaching and specializing in Iyengar Yoga. 

Reconnect to the Power Within with RENOVAD donated by Renovad Experiential Retreats. Renovad hosts world-class renovation experiences around the globe in destinations that evoke relaxation, inspiration and adventure, providing women of consequence a unique opportunity to reinvigorate mind, body, and soul. 

Bid for a chance to win a $500 GIFT CERTIFICATE towards one Renovad 2022 Experiential Retreat.*

Choose from the following upcoming Retreats:

MOROCCO: Zagora Desert, Marrakech & Atlas Mountains, May 27 – June 4, 2022, OR GREECE: Athens, Paros & Santorini, Sept 3-10, 2022.

*Valid with the purchase of a complete CORE RETREAT PROGRAM. Please find additional information about these trips: https://www.renovad.co/retreats

fundraiser4 VIP Tickets to Disney on Ice at Prudential Center in Newark, NJ donated by Investors Bank.

Thanks to Investors Bank, one of our amazing sponsors for this event, you will have a chance to make memories with your entire family at Disney On Ice presents Let’s Celebrate! at Prudential Center in Newark NJ.

See your favorite Disney characters like never before! VIP tickets for the best location

We will also be giving away a number of Latina Inner Circle Memberships during the silent auction to all who participate on December 8 from 4 pm to 7 pm on our Facebook LIVE Streaming event.

To view the full list of prizes and donors, visit the silent auction page here. For more information and to register for the event visit: https://www.eventbrite.com/e/208728290937.

Support your local Latina businesses this Small Business Saturday #ShopSmall

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Tomorrow marks the 12th annual Small Business Saturday — a day to celebrate and support small businesses in our communities. Founded by American Express in 2010 and officially cosponsored by the U.S. Small Business Administration (SBA) since 2011, Small Business Saturday takes place annually on the Saturday after Thanksgiving, encouraging consumers to #ShopSmall and support the nation’s 32 million independent businesses as part of their holiday shopping sprees. 

This year, more than ever, supporting our small businesses is crucial. After over a year of setbacks due to the COVID-19 pandemic, many small businesses are still struggling. As businesses rebuild and pivot post-pandemic, holiday shoppers can help by choosing to shop small, both locally and virtually, rather than at a big name retailer.

According to the 2020 Small Business Saturday Consumer Insights Survey commissioned by American Express, spending among U.S. consumers who shopped small on the holiday reached an estimated $19.8 billion. Additionally, the survey found that 97% of shoppers recognized the positive impacts of shopping small and 85% reported they have encouraged others to #ShopSmall as well.   

How to support your local small businesses 

Go On A Small Business Shopping Spree – Avid holiday shippers know all about Black Friday and many will make a day of it, going on a shopping spree with friends and family to get the best deals and discounts. Small businesses often offer similar sales on Small Business Saturday. Like Black Friday or Cyber Monday, you and your family can go on a local shopping spree to support the small businesses in your community. Consider the items you would like to purchase for the holidays and find small businesses that sell them instead of simply going to big name retail stores. 

Spread the Word – Use social media and word of mouth to help promote the small businesses in your area. Many small businesses do not have the luxury to create large marketing campaigns and promotions the way big retailers can. Instead, most rely on word of mouth and local advertisement. By simply spreading the word about a small business you are helping them grow and thrive. After your local shopping spree, spend some time sharing your favorite locations with others and also consider leaving them an online review about your experience!  

Keep it Up Year Round – Small Business Saturday is only one day out of the year, but it’s a good time to introduce yourself to the small businesses in your area. After the holiday, keep up your support year round. You don’t need to wait until next year to continue to #ShopSmall! 

Latinas are Back in Business! 

Want to continue supporting Latina small business owners and entrepreneurs? Join us for Latina In Business’s annual silent auction December 8th! 

The free virtual event will include a LIVE Streaming session where female founders will share the struggles they faced during the pandemic and how they not only survived but also thrived! 

The Silent Auction page includes donations from major sponsors and also, high-end female brands including Renovad Experiential Retreats, Fashion Designers of Latin America, Stuyvesant Champagne, Villakuyaya Gourmet Chocolates, and many more. The lowest bid starts at $15 but viewing of the Silent Auction Page is free to all who register.  

By bidding, you will be helping support female founders while entering for a chance to win big prizes! See here to register now. 

restaurant, covid-19 worker

Applications for the SBA’s Restaurant Revitalization Fund are now open

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The Small Business Administration’s Restaurant Revitalization Fund is now accepting applications. This program will provide emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19.

restaurant, covid-19 worker, businesses impacted by COVID-19, RRF

Photo by dapiki moto on Unsplash

About the Restaurant Revitalization Fund 

During the Covid-19 pandemic, small businesses have been impacted the most, with many facing tremendous losses in revenue and others forced to shut down. Of these businesses, restaurants and food establishments have been hit the hardest, as Covid-19 safety restrictions have limited business flow. 

Under President Biden’s American Rescue Plan Act, the Restaurant Revitalization Fund (RRF) has been established to provide funding to help restaurants and other eligible businesses recover from pandemic-related losses and stay open. The program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

Applications for the RRF are now open as of May 3, 2021. Apply now!

Who can apply? 

Eligible businesses who have experienced pandemic-related revenue loss as listed on the SBA site include: 

  • Restaurants
  • Food stands, food trucks, food carts
  • Caterers
  • Bars, saloons, lounges, taverns
  • Snack and nonalcoholic beverage bars
  • Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
  • Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
  • Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
  • Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
  • Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
  • Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products

How to apply? 

All eligible businesses can apply directly though the SBA’s application portal: https://restaurants.sba.gov or through SBA-recognized Point of Sale (POS) vendors. Participating POS providers include: Square, Toast, Clover, NCR Corporation (Aloha), and Oracle. 

If you need assistance preparing your application, check out the following resources: 

 Watch a Webinar: Learn how to apply for RRF

RRF Application Dates

Priority Period 

Applications open today at noon, Monday May 3, 2021. Throughout the first 21 days from the opening of the Application portal, the SBA will accept applications from all eligible applicants, but only process and fund priority group applications.

Priority groups are defined as a small business that is at least 51% owned by one or more individuals who are: women, veterans, or socially and economically disadvantaged. 

Socially and economically disadvantaged individuals are those “who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities…and whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area.” 

You might be interested: NJEDA & digitalundivided showcase resources for Black & Latino Entrepreneurs

Open to All 

From days 22 through funds exhaustion the SBA will accept applications from all eligible applicants and process applications in the order in which they are approved by SBA.

How funds can be used

Funds may be used for specific expenses including:

  • Business payroll costs (including sick leave)
  • Payments on any business mortgage obligation
  • Business rent payments (note: this does not include prepayment of rent)
  • Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
  • Business utility payments
  • Business maintenance expenses
  • Construction of outdoor seating
  • Business supplies (including protective equipment and cleaning materials)
  • Business food and beverage expenses (including raw materials)
  • Covered supplier costs
  • Business operating expenses

For more information, access to forms and other specifications visit: sba.gov 

Background photo created by osaba - www.freepik.com'>small business, business loan,

How American Rescue Plan Act will help minority-owned small businesses recover post-COVID

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The American Rescue Plan Act will help small businesses recover post-COVID by providing critical assistance to businesses across the country and delivering $50 billion in aid and relief. 

Minority-owned businesses have struggled to get small-business relief loans 

The COVID-19 pandemic brought on great financial difficulties for businesses across the nation. Small businesses were greatly affected, with women- and minority-owned small businesses hit the hardest. 

Photo by Gene Gallin on Unsplash

Since last April, workers of color have faced the highest rates of pandemic-related unemployment. Data shows that Black and Latino people are now facing greater rates of unemployment than during the 2008 Great Recession. Minority-owned small businesses have also faced greater difficulties accessing capital and relief loans. 

The Paycheck Protection Program, which launched in March 2020, has now become the largest small-business support program in U.S. history, sending $734 billion in forgivable loans to struggling companies. It has helped nearly 7 million businesses stay afloat, but it has also been plagued by complex, ever-changing rules that have hindered many businesses from getting much needed relief loans. 

Many of the businesses affected by the changing rules and confusion have been minority-owned businesses. From language barriers to unfair biases, minority business owners have struggled to gain access to capital and bank loans from major banks. Many have since turned to their communities and smaller, local banks to find relief, but new changes to the program under President Biden are now pushing to funnel more money toward women- and minority-led businesses. 

You might be interested: PPP Loan forgiveness: $50,000 loans for small business and self-employed

Changes to PPP and SBA loans under the American Rescue Plan 

New Funding and Changes to the Paycheck Protection Program (PPP). The bill includes $7.25 billion in additional funding for the Paycheck Protection Program (PPP) and changes eligibility for the PPP, including:

  • Expanding eligibility for 501(c) nonprofits. It also makes local offices of larger nonprofits eligible for PPP assistance as long as those locations are not larger than 500 employees for first PPP loans or 300 employees for second PPP loans, expanding access to vital relief for nonprofit organizations that are critical to local services and the economy.
  • 1st PPP Draw loan deadline: on or before 31 May 2021 (businesses must have been in business from 15 Feb 2020)

PPP loans have:

  • A fixed interest rate of 1% that is non-compounding and non-adjustable
  • No requirement for collateral or personal guarantees
  • No fees or prepayment penalties
  • A 5 year maturity

New Programs per the American Rescue Plan Act

Supplemental Targeted EIDL Advance Payment: 

  • A $5 Billion fund for $5k payments to those hardest hit

Restaurant Revitalization Fund & Grants – Coming soon

  • A $28.6 billion fund for grants to eligible entities in this hard-hit industry
  • Max $5 million grant/location and aggregate max $10mil grant

lack of access to capital

How to Apply 

If you have a small business and would like to apply for any of these SBA programs, visit www.sba.gov to learn more about COVID-19 Small Business Guidance and Loan Resources. Under SBA’s Coronavirus Relief Options page, you can learn about how to apply for a variety of programs including: 

  1. Paycheck Protection Program (PPP) 
  2. Economic Interruption Disaster Loan (EIDL) 
  3. SBA Express Bridge Loans 
  4. SBA Debt Relief for 7(a), 504, & Microloans 
  5. Shuttered Venue Operators Grant program

Steps to finding a lender:

Need more help? Check out our other PPP resources

shopping small business

Small Business Saturday a day to support your local Latino small businesses

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Despite the disadvantages Latino small businesses face, they have outstripped small business growth’s national rates. However, they encounter barriers that other small business owners and entrepreneurs might find easy to overcome. Frequently, financial education and language barriers drag down Latino small businesses compared to other demographics. Still, “when there’s a will there’s a way,” and nobody believes this truth more than a Latino small business owner.

shopping small business

Despite the disadvantages Hispanic businesses face, they have outstripped small business growth’s national rates. However, they encounter barriers that other small business owners and entrepreneurs might find easy to overcome. Those barriers are related to low levels of education and literacy, especially in the financial literacy arena, lack of English language skills, and difficulties in navigating the financial system in the United States.

When I arrived in this country in 1990, I realized that this society was based on the power of literacy and the written language, a great disadvantage for a number of immigrants who come from countries where literacy is a luxury, or from areas where large indigenous populations speak native languages, many of which do not have a written format. They come from societies based on verbal or oral communication and solidarity networks. It is still a common practice for small businesses to keep their finances in a pen and paper fashion.

Participants at 2016 Internet Marketing Week SBDCNJ - Rutgerts School of Business NJ

Several business courses are offered through SBDC around the country. Here: Sunny Kancherla, Director, NJSBDC E-Business Division at Participants at 2016 Internet Marketing Week SBDCNJ – Rutgers School of Business NJ

Americans are used to a highly functional literate society based on written communication in almost every aspect of their lives: school, media, business, banking, you name it. The rise and imperative use of technology leave many behind. Digital dexterity and knowledge are mandatory in any business environment wanting to compete in the real world.

Most foreign degrees are usually assessed by independent evaluators or academic institutions without certain equivalence. For instance, a six-year professional degree in an area of expertise, common in many Latin American universities, might be compared to an undergraduate degree in the United States.

Professional and entrepreneurial immigrants might have some advantages over their counterpart immigrant workers but only if they master the English language. Even so, they encounter difficulties in starting a new business until they get some degree of acculturation and understanding of the system’s mechanisms.

Being there, doing that

Carlos Quintana, a California community organizer that leads an organization called “Manos Unidos” –yes, this is not a typo- says he works with people from Mexico, Argentina, Peru and other countries who often are wary of applying for a grant, joining a chamber of commerce or volunteering for a city advisory commission because they have experience with corrupt agencies in their native countries.

Many, Quintana says, have the drive to start businesses but don’t understand the rules about taxes, accounting, and payroll. Also, he mentions the digital divide; Latinos are not using computers, which are a primary source of information. His organization, like many others throughout the country, can help them figure out planning and licensing requirements and can connect them with Spanish-speaking accountants and tax preparers.

However, the language divide is still a concern for many Latino business owners who would like to grow their businesses and find out about opportunities in state, federal or the private sector. The tricky part is to find a program designed for learning enough specific English business vocabulary to get by at a reasonable cost.  Specialized packages can go from $1500 and up, just to start. Some universities do offer continuing education short programs such as University of South Florida or Columbia University summer courses. However, these classes are too expensive and more suitable for corporate employees or international business students.

Latino small businesses

CHELSEA, MA – JULY 23: Adult education students listen at Centro Latino in Chelsea, a suburb where the Latino population has boomed. (Photo by David L Ryan/The Boston Globe via Getty Images)

Additional barriers in financial literacy and best practices

A report from the Ninth Federal Reserve District, which includes Minnesota, Montana, North and South Dakota, 26 counties in northwestern Wisconsin and the Upper Peninsula of Michigan, states that although they have seen an impressive growth in their Latino small businesses –among the six states in the Ninth Federal Reserve District, Minnesota had the highest percentage increase in revenues for Hispanic businesses, at 248 percent for the period 2002–2007–, they still lag behind national levels.

“The low average for gross receipts may be partly due to the average size of Hispanic-owned businesses. Many of them are microenterprises, or establishments with zero to just a few paid employees. But there are other factors besides size that keep Hispanic-owned businesses from reaching their potential.” Among others, the report mentioned causes such as having a fear of government and established institutions, a limited understanding of American business processes, and encountering a lack of culturally friendly or linguistically appropriate services at local institutions.

Likewise, they have detected “difficulties understanding and communicating with the state and city structures necessary for opening a business. Examples include the need for a federal and state tax ID, registration forms, and property taxes. Also, many Latino entrepreneurs have limited experience with effective business sustainability practices. Limited knowledge in fields like accounting, commercial bank accounts and credit history poses a major roadblock for businesses that would otherwise be of great contribution to Minnesota’s general economy.”

Unfortunately, I have not found many options other than maybe small initiatives at local community level dealing with these barriers, and I would love to hear from more of them. Latinos are very entrepreneurial; the wealth and employment potential they can bring to their communities should not be underestimated. Moreover, they should be taken as an unbeaten role model to be successful against all odds.

How most and least diverse cities in the US affect minority-owned businesses

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A study conducted by WalletHub found out that minority-owned businesses thrive in ethnically diverse cities. Population trends predict that by 2044 minority populations will rise to 56 percent so that no single ethnic group will constitute as the majority in the country. This is a relevant and important trend given the current political climate and immigration issues.

Exhibitors at the 2014 First Health and Wellness Fair. minority-owned businesses

Exhibitors at the 2014 SHCCNJ First Health and Wellness Fair

Diversity fosters growth and enriches our environments– from exposure to different cultures and languages to economic benefits for businesses. A study conducted by WalletHub compared 500 U.S. cities across three key metrics, including ethnoracial diversity, linguistic diversity and birthplace diversity.

minority-owned businesses

Jill Gonzalez WalletHub Analyst

The study found that the most culturally diverse city in the US is Jersey City, New Jersey, while Oakland, California has the highest ethnic and racial diversity– four times higher than Hialeah, Florida, the city with the lowest. Furthermore, Hialeah, Florida has the highest concentration of Latinos and Hispanics at 96.26 percent.

Ethnically diverse cities help diverse businesses thrive. One of the main benefits of living in an ethnically diverse city is innovation. An innovative environment fosters growth and allows for creation of businesses and job opportunities. 

“Diverse cities tend to be economically strong,” said WalletHub Analyst, Jill Gonzalez. “Small businesses can thrive in diverse cities, as these are melting pots of innovative ideas that help these businesses to improve, develop new technologies and hire skilled workers.”

Gonzalez also added that minority-owned businesses can find support at the state and federal level. “Most of the states implement their own programs that promote or help diverse business,” she said. “At the federal level, the Minority Business Development Agency works to create policies and programs that result in the growth of minority-owned businesses by facilitating services that provide access to financing and contracts.”

minority-owned businesses

Mary Kay consultants at the 2017 Latina SmallBiz Expo

The main challenge of living in an ethnically diverse city, according to Gonzalez, is creating and maintaining a safe, inclusive environment. With various different ethnic and racial groups, conflicts may arise and newer groups might feel excluded by the existing local community. Established groups may also feel threatened by the economic and social impact of newer groups. Communities can minimize these challenges by focusing on inclusion, tolerance, and teamwork.

You might be interested: 50 Top U.S. corporations giving opportunities to minority small businesses

Overall, “the benefits far outweigh the challenges,” Gonzalez said. Diverse cities are full of potential and opportunities, especially for minority-owned businesses. Innovation and inclusion are the two keys to a successful, diverse environment.

shopping small business

Small Business Saturday: Against the odds, Latino small businesses thrive

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Financial education and language barriers drag down Latino small businesses compared to other demographics. Still, “when there’s a will there’s a way,” and nobody believes this truth more than a Latino small business owner.

shopping small business

Despite the disadvantages Hispanic businesses face, they have outstripped small business growth’s national rates. However, they encounter barriers that other small business owners and entrepreneurs might find easy to overcome. Those barriers are related to low levels of education and literacy, especially in the financial literacy arena, lack of English language skills, and difficulties in navigating the financial system in the United States.

When I arrived in this country in 1990, I realized that this society was based on the power of literacy and the written language, a great disadvantage for a number of immigrants who come from countries where literacy is a luxury, or from areas where large indigenous populations speak native languages, many of which do not have a written format. They come from societies based on verbal or oral communication and solidarity networks. It is still a common practice for small businesses to keep their finances in a pen and paper fashion.

Participants at 2016 Internet Marketing Week SBDCNJ - Rutgerts School of Business NJ

Several business courses are offered through SBDC around the country. Here: Sunny Kancherla, Director, NJSBDC E-Business Division at Participants at 2016 Internet Marketing Week SBDCNJ – Rutgers School of Business NJ

Americans are used to a highly functional literate society based on written communication in almost every aspect of their lives: school, media, business, banking, you name it. The rise and imperative use of technology leave many behind. Digital dexterity and knowledge are mandatory in any business environment wanting to compete in the real world.

Most foreign degrees are usually assessed by independent evaluators or academic institutions without certain equivalence. For instance, a six-year professional degree in an area of expertise, common in many Latin American universities, might be compared to an undergraduate degree in the United States.

Professional and entrepreneurial immigrants might have some advantages over their counterpart immigrant workers but only if they master the English language. Even so, they encounter difficulties in starting a new business until they get some degree of acculturation and understanding of the system’s mechanisms.

Being there, doing that

Carlos Quintana, a California community organizer that leads an organization called “Manos Unidos” –yes, this is not a typo- says he works with people from Mexico, Argentina, Peru and other countries who often are wary of applying for a grant, joining a chamber of commerce or volunteering for a city advisory commission because they have experience with corrupt agencies in their native countries.

Many, Quintana says, have the drive to start businesses but don’t understand the rules about taxes, accounting, and payroll. Also, he mentions the digital divide; Latinos are not using computers, which are a primary source of information. His organization, like many others throughout the country, can help them figure out planning and licensing requirements and can connect them with Spanish-speaking accountants and tax preparers.

However, the language divide is still a concern for many Latino business owners who would like to grow their businesses and find out about opportunities in state, federal or the private sector. The tricky part is to find a program designed for learning enough specific English business vocabulary to get by at a reasonable cost.  Specialized packages can go from $1500 and up, just to start. Some universities do offer continuing education short programs such as University of South Florida or Columbia University summer courses. However, these classes are too expensive and more suitable for corporate employees or international business students.

Latino small businesses

CHELSEA, MA – JULY 23: Adult education students listen at Centro Latino in Chelsea, a suburb where the Latino population has boomed. (Photo by David L Ryan/The Boston Globe via Getty Images)

Additional barriers in financial literacy and best practices

A report from the Ninth Federal Reserve District, which includes Minnesota, Montana, North and South Dakota, 26 counties in northwestern Wisconsin and the Upper Peninsula of Michigan, states that although they have seen an impressive growth in their Latino small businesses –among the six states in the Ninth Federal Reserve District, Minnesota had the highest percentage increase in revenues for Hispanic businesses, at 248 percent for the period 2002–2007–, they still lag behind national levels.

“The low average for gross receipts may be partly due to the average size of Hispanic-owned businesses. Many of them are microenterprises, or establishments with zero to just a few paid employees. But there are other factors besides size that keep Hispanic-owned businesses from reaching their potential.” Among others, the report mentioned causes such as having a fear of government and established institutions, a limited understanding of American business processes, and encountering a lack of culturally friendly or linguistically appropriate services at local institutions.

Likewise, they have detected “difficulties understanding and communicating with the state and city structures necessary for opening a business. Examples include the need for a federal and state tax ID, registration forms, and property taxes. Also, many Latino entrepreneurs have limited experience with effective business sustainability practices. Limited knowledge in fields like accounting, commercial bank accounts and credit history poses a major roadblock for businesses that would otherwise be of great contribution to Minnesota’s general economy.”

Unfortunately, I have not found many options other than maybe small initiatives at local community level dealing with these barriers, and I would love to hear from more of them. Latinos are very entrepreneurial; the wealth and employment potential they can bring to their communities should not be underestimated. Moreover, they should be taken as an unbeaten role model to be successful against all odds.