According to recent data from the U.S. Census Bureau, there was a significant increase in business activity during 2020, driven by changes in personal and professional goals, as well as changes in consumer behavior, especially due to the Covid-19 pandemic. According to an article by The Wall Street Journal on this data, one aspect highlighted is the remarkable growth of Latino companies in the United States, which continued to be a striking trend even four years after the beginning of the pandemic.

The data further demonstrates that Latin American immigrants are starting businesses at a rate (36%) more than twice that of the general U.S. population. This has contributed to increasing the global share of new businesses owned by immigrants. Meanwhile, new business creation by white, native-born Americans has slowed in recent years.

A crucial factor in the continued success of Latino companies is the type of business they offer. Food and delivery services, especially popular with Latino businesses, experienced a surge in demand during the pandemic, according to analysis by economist Robert Fairlie.

Entrepreneurship is seen as an attractive option for many immigrants, including those who are undocumented, as it does not require a work permit or Social Security number. In addition, a lack of fluency in English and U.S. credentials can make obtaining traditional employment increasingly difficult, according to the report.

Food is particularly popular among immigrant entrepreneurs due to the low initial investment required and the flexibility of schedules. Many immigrants are also interested in foods that hark back to their cultural origins.

The Latin Times article on the subject presents the example of Deisy Vivas, a Venezuelan immigrant who, after losing her job during the pandemic, launched her own Venezuelan food company with her husband. This illustrates how entrepreneurship can be a response to the difficulties faced by immigrants in the labor market.

While there are many success stories, this publication highlights the challenges that Latino companies face. Many of them have difficulties obtaining credit and tend to be smaller in size compared to businesses owned by non-Hispanic whites. This reflects persistent barriers that Latino entrepreneurs face in accessing financial resources and growing their businesses.

“Forty-two percent of startups with Hispanic owners were denied credit, compared with 25% of startups with white owners, according to data from the 2022Federal Reserve Small Business Credit Survey. Hispanic startups also tend to be smaller, the study found, with 46% reporting more than $100,000 in annual revenue compared with 62% of white-owned firms, according to the analysis”, Latin Times published.