Latino-owned small businesses are fueling entrepreneurship in the United States and growing faster than any other demographic. According to a study by McKinsey, Latinos created 36% of all new businesses in 2023, almost double their 19% representation in the population. However, this entrepreneurial dynamism occurs despite persistent barriers.

Today, 19% of the U.S. population identifies as Latino or Hispanic. By 2060, Latinos are expected to represent approximately 28% of the total U.S. population, according to a report by the Latin Times based on data from the U.S. Census Bureau. Latino entrepreneurs, to a large extent, are younger and open up the possibility of value creation and long-term growth, as the education levels of these entrepreneurs are expected to continue to rise.

According to the survey, in Miami, Latinos make up 47% of the population and own 27% of small businesses, generating more revenue per employee than non-Latino businesses. McKinsey attributes this success to higher education, robust local networks, and better access to finance, which create a thriving ecosystem for entrepreneurs.

However, many places don't offer all three of these pillars like Miami, leading Latino entrepreneurs to face considerable challenges. Latinx small and medium-sized enterprises (SMEs), for example, have more trouble scaling, hiring, and retaining talent and gaining access to financing than their non-Latino peers.