Saturday, July 20, 2024

Latinos and Immigrants Creating Their Own Economic Opportunities

Latino Businessman

Latinos and immigrants are taking their economic future into their own hands according to a new study by the Ewing Marion Kauffmann Foundation which showed immigrants accounting for roughly 29% of new business creation in the United States with new businesses owned by Latinos growing to 22%.

Part of what is driving this uptick in new business creation among minority groups is the economic reality these groups face. With some immigrants running into language barriers and education levels at or below a high school education, many immigrants and Latinos have found it hard to secure salaried positions in the workforce. The study found that immigrants started new businesses or became self-employed at a rate twice that of native-born Americans, with many of these new businesses being “mom and pop” shops employing fewer than 10 employees in most cases.

Alberto Dávila, chairman of the economics and finance department at the University of Texas-Pan American in Edinburg, Texas commented that “if you dig into the numbers, it’s really Mexican self-employment that is carrying this growth”

Overall, the numbers represent an average of 520 new businesses created per month by immigrants and Latinos. David Kallick, a senior fellow at the institute, explaining the unique entrepreneurial prospects for immigrants and Latinos noted that because they come from different backgrounds, some immigrants may be able to identify gaps in the marketplace for products or services that could benefit their local communities.