When obstacles are faced daily, Latina entrepreneurs need a place where they will be encouraged
While you may find some news mentioning that entrepreunial activity is at an all time low, you would be surprised that one community is buzzing away at entrepreneurship…minority women and in particular, Latinas!
Latinas, as I’ve mentioned in previous articles, are the fastest growing group of women entrepreneurs according to a report commissioned by American Express OPEN.
The report also makes us aware that there are over 1 million Latina-run businesses in the U.S. but what was especially surprising to me was that most evidence points to the little known fact that many Latinas begin their adventure in entrepreneurship when they are in their 40s and 50s!
“The economic impact that Latinas have on the economy is enormous. It is estimated that Latinas are starting businesses at 6 times the rate when compared to their white counterparts and their financial success is beneficial beyond their family and community.”~ 2013 Nielsen Report on Latinas
This is all great news but the reality is that while some are celebrating the entrepreuners who have become more visible there are thousands of others who are encountering the barriers that many women face daily and most likely these visible entreprenuers encountered as well and WON!
Let me give you a few of the barriers uncovered by a report conducted on behalf of the U.S. Senate Committee on Small Business and Entreprenuership;
· Women only account for 16 percent of conventional small business loans.
· Women receive just seven percent of venture funds.
Another report prepared for the National Women’s Business Council stated that:
· On average, men start their businesses with twice as much capital as women.
· Women receive only two percent of total funding from outside equity, compared to 18 percent for men.
· Women-owned firms were much more likely to have their loan applications denied than their male-owned counterparts.
· Women lack confidence to launch their own businesses as opposed to males. According to a 2012 report nearly two-thirds of men are confident they can start businesses, but women aren’t as confident regardless of education and experience.
Such obstacles where faced by this Latina entrepreneur I recently wrote about and she turned to family and friends to get her business off the ground. But where can those of us who don’t have such a supportive base turn to?
Next- Latina entrepreneurs need a place where they will be encouraged