Latino entrepreneurship is driving up the overall share of new businesses owned by immigrants, especially since the COVID-19 pandemic. The Wall Street Journal reports that Latin American immigrants are starting businesses at more than twice the rate of the U.S. population as a whole.
According to a new analysis of Census Bureau data, Latino-owned businesses accounted for 36% of launches last year, compared with 25% in 2019, the year before the pandemic began. Meanwhile, new business creation by white and native-born Americans has slowed in the past two years.
Women are driving many of the new ventures, which are primarily in services, food, and delivery, all sectors that have experienced increased demand since the onset of the pandemic.
Although entrepreneurship is an attractive option for undocumented immigrants because it doesn’t require work authorization or a Social Security number, access to capital is a common challenge for Hispanic entrepreneurs, as many immigrants, regardless of their status, have low credit scores, weak banking ties, and few assets.
