7 Challenges Hispanic Entrepreneurs Face – And How to Overcome Them
There are nearly 5 million Hispanic-owned businesses in the United States that contribute more than $800B to the American economy on an annual basis.
To help you appreciate the common challenges Hispanic entrepreneurs and business owners face, we asked successful Hispanic professionals and business owners about the challenges they’ve overcome. From being branded as a Hispanic business leader to lack of due recognition, there are several common challenges that Hispanic-owned businesses and ventures encounter.
Here are seven common challenges these Hispanic entrepreneurs work to overcome:
- Being Branded as a Hispanic Business Leader
- The Assumption That the Business Serves Only Hispanics
- Unstable Economic Environment and Apparent Lack of Funding
- Discrimination
- Securing Funding
- Insecurity and Lack of Self-Confidence
- Lack of Due Recognition
Being Branded as a Hispanic Business Leader
Not being taken seriously and being pigeonholed as the “Hispanic” business leader instead of just a business owner. I am very proud of my Hispanic heritage and here in Miami, there are lots of successful entrepreneurs that identify with their Hispanic heritage. But just because I happen to be Hispanic does not mean that every success, or failure, I have needs to be examined through that lens. I am just as proud of the fact that I am American as anyone blessed enough to grow up in this country and I find it frustrating that my heritage takes precedence over my accomplishments. At the end of the day, complaining doesn’t do anyone any good and I attribute my success to my ability to shut out the noise more than anything else. Life isn’t fair and the world doesn’t owe you anything. Once I truly accepted that I got out of my own way and carved my own path forward.
Ubaldo Perez, Hush Anesthetic
The Assumption That the Business Serves Only Hispanics
Most investors and potential partners have assumed that my business is targeted specifically at helping Hispanics. This has presented challenges because I have to convince people that my business is for everyone. To overcome these kinds of challenges, I have needed to be very clear about my target market and what value I can offer them. I’ve also needed to make sure that my branding and marketing are top-notch and convey a professional image.
Matthew Ramirez, Paraphrase Tool
Unstable Economic Environment and Apparent Lack of Funding
One of the main challenges we face is the innate apprehension and sometimes lack of knowledge around funding opportunities. Coming from countries where the latter are difficult or non-existent, it’s easy to feel overwhelmed and skeptical when these are presented to you as an entrepreneur. The unstable environments around us present also another challenge, as big inflation rates and unstable political situations make us all redefine our growth strategies more often than in more established markets.
Marco Genaro Palma, PRLab
Discrimination
As a Hispanic Entrepreneur or any minority entrepreneur for that matter, one of the biggest challenges we face is discrimination, but one must rise above it and never lose dignity. Mahatma Gandhi said “Be the change you want to see happen. We must be the change we wish to see in the world.” One must never lose focus and sight of our main objectives and more importantly, one must have a positive impact in our community and the people that surround us.
Pablo Paz, Interactive Contact Center
Securing Funding
One challenge I have always faced is getting loans for my business. Banks will do a lot of business with Hispanics regarding checking accounts and other things but make it hard for us to get business loans, despite all the talk about reaching out to minorities. That is especially true for start-ups.
I chose to go with some alternative lending to meet my needs until I could build up some credit and financial resources. I also got a small loan for Hispanic minorities. It’s a great loan with low interest.
Tanya Klien, Anta Plumbing
Insecurity and Lack of Self-Confidence
The biggest enemy I have when handling a business is myself. Despite my achievements, I sometimes feel insecure and have no confidence in my actions, especially when I see other people of different races perform better than I do. I always blame it on my heritage and cultural upbringing, which I struggled with during the early years of managing the company. However, I have tried to open up a bit and realized that the world is changing. People’s perspectives are now becoming more inclusive, which has positively changed how I see myself and the people around me. After a little while, I learned that we are all equal, and the only thing that separates us from others is the level of effort we put into mastering our crafts.
Adam Garcia, The Stock Dork
Lack of Due Recognition
Opportunities don’t always come easy for Latinos in the United States, but in spite of that undeniable fact, the fastest-growing small business owners across the country are, in fact, Latino business owners. They employ millions of workers across multiple industries. What I have come to realize is that people don’t fully recognize the sizable – and positive – impact that Latino entrepreneurs and business owners have had on the economy. Greater awareness of that should incentivize more Latinos and other minorities to pursue business ownership, further demonstrating that the American dream is available to anyone, regardless of their ethnic or racial background.
Erik Rivera, USA Rx
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