Research
A compilation of research studies, white papers and other valuable insights for Hispanic entrepreneurs impacting businesses across the Globe, our Country and our region.
years
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UNLEASHING THE HISPANIC BUSINESS POTENTIAL THROUGH DIGITAL INCLUSION
Latino entrepreneurs and small business owners were among the hardest hit by the pandemic, exacerbating existing inequalities. A lack of access to digital tools and critical capital caused a third of Latino-owned businesses to temporarily close or permanently shut down. Insufficient access to a digital safety net, including e-commerce channels, has continued to hamper the resilience and competitiveness of Latino businesses for the past two years.
Throughout the country and across the globe, the pandemic has made all companies part of the tech industry. As Hector Mujica of Google.org notes, “We need to stop talking about the digital economy and just talk about the economy. The economy is the digital economy. Two-thirds of jobs require basic digital skills.”
For Latino-owned businesses to experience the upward economic mobility that tech can bring— and in turn become an economic engine for their communities—the ratio of several current data points needs to change. Although Latinos now represent more than 18 percent of the U.S. population6, they only represent 7 percent of the tech workforce, just 4 percent of tech leadership7, only 2 percent of tech board members8, and 2 percent of tech startup founders. Despite the billions of dollars going into the tech industry, Latina representation in the tech field is just 0.4 percent9.
Flipping these ratios will require closing the nation’s current digital divide with massive federal investment in broadband access and the technical upscaling of
small businesses. Other actions needed to increase the tech capacity of Latino-owned businesses include:
• Capacity-building resources that are offered in Spanish and English. Skills building resources need to be culturally relevant and led by people who look and sound like the community they are targeting.
Untapped Economic & Job Creation Potential
Hispanics continue to comprise a larger portion of Illinois’ population. Since 1980 the number of Hispanics in Illinois has grown by 228 percent, from 639,885 in 1980 to 2,098,667 in 2012. As a result of this ongoing growth, the number of Hispanic-owned businesses (HOBs) in Illinois has grown to approximately more than 70,000.
This report identifies some of the challenges Hispanic business owners face. Understanding these challenges and identifying effective ways to support the growth and success of Hispanic-owned businesses will help Illinois tap into an enormous source of future employment, tax revenue, purchasing power and statewide economic benefits.
Levels of Internationalization, Opportunities and Challenges
Latino/Hispanic-Owned Businesses represent economic growth opportunities in every community where they do business. In a globalized world, growth for firms can come from selling into markets beyond one's domestic borders. In a globalized world, growth for firms can come from selling into markets beyond one's domestic borders. In a globalized world, company efficiencies can be found in sourcing materials, equipment, and supplies from international vendors. Globally integrated firms take full advantage of the benefits of globalization because thy combine those twin perspectives.
Illinois has the fifth largest concentration of Hispanics and Hispanic-Owned Businesses (HOBs) in the United States. In a region rich with both the vitality of Hispanic entrepreneurs and with geographic clusters of firms that make connections to global communities easier, and important question to ask is: How well are Latino businesses partaking of global opportunities? The research presented in this report attempts to answer that question.
This research was conducted as a joint project between the Brennan School of Business, Dominican University, and the Illinois Hispanic Chamber of Commerce.