Tue Oct 01 09:45:00 UTC 2024: ## Latino-Owned Businesses Show Resilience Despite Economic Challenges
**NEW YORK, October 1, 2024** – A new study by Biz2Credit reveals that while Latino-owned businesses experienced revenue growth in 2023-24, rising expenses led to lower earnings compared to the previous year. Despite these challenges, Latino-owned companies outperformed non-Latino-owned businesses in terms of earnings, highlighting their resilience in the face of economic headwinds.
The Biz2Credit 2024 Latino-Owned Business Study analyzed over 121,000 funding requests from small and mid-sized companies across the U.S. The study found that Latino-owned businesses saw a 11.6% increase in revenue, however, expenses rose by a much larger 22.7%, resulting in an average earnings decline of $41,100.
“Inflationary pressures significantly impacted all small businesses, but Latino-owned companies were not immune,” stated Rohit Arora, CEO of Biz2Credit and Biz2X. “Despite the revenue gains, the rapid increase in expenses, including labor costs, fuel prices, and interest rates, led to a decrease in profits.”
Despite these challenges, the study also found that Latino-owned businesses are a vital force in the U.S. economy. The Stanford Graduate School of Business Latino Entrepreneurship Initiative (SLEI) reports that Latinos contribute $3.2 trillion annually to the U.S. economy and own nearly 5 million businesses.
Furthermore, Latino immigrants are starting businesses at twice the rate of the general population, with 36% of new businesses being launched by immigrants in 2023, according to the U.S. Census Bureau.
The Biz2Credit study provides valuable insights into the financial performance of Latino-owned businesses and highlights their significant contribution to the U.S. economy. While facing economic challenges, these businesses demonstrate resilience and a strong entrepreneurial spirit.
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