{"id":14248,"date":"2025-04-28T15:27:07","date_gmt":"2025-04-28T15:27:07","guid":{"rendered":"https:\/\/finderica.com\/?p=14248"},"modified":"2025-04-28T15:27:07","modified_gmt":"2025-04-28T15:27:07","slug":"how-latino-entrepreneurs-are-paving-the-way-forward-in-an-unprecedented-year","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=14248","title":{"rendered":"How Latino Entrepreneurs Are Paving The Way Forward In An Unprecedented Year"},"content":{"rendered":"\n
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<\/p>\n

Eneida M. Roman, Esq, CEO of We Are ALX, a collaborative non-profit with the mission of advancing … More<\/span> Latino American prosperity and leadership representation in Massachusetts.<\/span><\/p>\n

<\/fbs-accordion>Eneida Roman<\/small><\/figcaption><\/figure>\n

In recent years, Latinos have made strides in their contributions to the American economy via entrepreneurship. Latinos reached an economic output of $3.6 trillion in 2023, ranking as the fifth largest economy in the world, per the Latino Donor Collaborative<\/u><\/a>. Meanwhile, Latino-owned businesses increased by more than 40 percent and more than one-third increase in total revenue from 2018 to 2023<\/u><\/a>.<\/p>\n

It\u2019s figures like these that wouldn\u2019t have existed en masse before reports like those from the Stanford Latino Entrepreneurship Initiative<\/u><\/a> (SLEI), a research collaboration highlighting the Latino entrepreneurial segment of the U.S. economy. These are also stats that help business owners and ecosystem leaders speak to the influence that this cohort has in the United States.<\/p>\n

This spring, business leaders from across the country congregated at Stanford to discuss the latest findings from the State of Latino Entrepreneurship<\/u><\/a> report, ten years after its debut in 2015.<\/p>\n

\u201cCommunity building has always been a Latino superpower\u2014and now, leveraging this strength to develop robust professional networks is more crucial than ever,\u201d Arturo Cazares, CEO of organization heading the report, Latino Business Action Network, wrote about the summit on LinkedIn<\/u><\/a>.<\/p>\n

The start of 2025 forecast incoming challenges for entrepreneurs with an increasingly competitive landscape for raising capital<\/u><\/a> concentrated in few sectors, decreased consumer spending<\/u><\/a> and ongoing supply chain issues<\/u><\/a>. In a year when President Donald Trump has also implemented tariffs, immigration policies, changes to financial programs, moved to eliminate the Minority Business Development Agency<\/u><\/a>, among other changes, Latino founders grapple with uncertainty and strategize on how to continue growing their businesses.<\/p>\n

As leaders in the space see it, a big part of the growth comes in collaboration amongst each other to share strategies that work and expand.<\/p>\n

\u201cLatino business owners must leverage strong, supportive ecosystems to gain warm introductions to capital providers, reducing implicit bias and unlocking real access to funding,\u201d Cazares said.<\/p>\n

That\u2019s just the start. Latino entrepreneurs and ecosystem builders across the country shared how they are pivoting and preparing their businesses for what\u2019s next in real time amid the current political and economic environment.<\/p>\n

<\/p>\n

2024 Latino Startup Hub Report<\/p>\n

<\/fbs-accordion>Inicio<\/small><\/figcaption><\/figure>\n

Regional startup hubs are on the rise, building ecosystems and access to funding and support founders where they are <\/strong><\/p>\n

A repeat founder himself turned ecosystem builder, Jorge Calderon has been in the startup space for more than fifteen years. He notes that it\u2019s not until only as recently as five years ago that Latinos have seen the rise of local startup hubs. It\u2019s one that is now documented by the organization where he serves as managing director, Inicio Ventures<\/u><\/a>. In the <\/u>2024 Latino Startup Hub Report<\/u><\/a>, 18 startup hub regions are documented across the U.S., home to over 35 million Latinos, representing approximately 55% of the U.S. Latino population. Leading hubs in the report include Boston, Los Angeles, Chicago and Denver, documenting talent pipeline, capital access and entrepreneurial capacity.<\/p>\n

\u201cAcross the U.S., regions now boast deeper and larger talent pools of Latino founders who are increasingly connected and building vibrant communities.\u201d Calderon said. \u201cThis progress is due in part to the post-George Floyd wave of funding directed toward entrepreneur support organizations, as well as the sheer volume of Latinos graduating from college and entering professional roles\u2014developing the skills and ambition to launch scalable startups, alongside other market dynamics.\u201d<\/p>\n

Inicio is an impact investing and ecosystem-building initiative which has served to increase Latino participation in the U.S. startup economy since 2023 via equity investments to ecosystem building. What he\u2019s seeing startup hubs bring to their ecosystems is skilled talent, investors, capital, service providers, corporations, higher education institutions and support organizations.<\/p>\n

\u201cIn each regional hub, one of these stakeholders may play an outsized role in advancing the ecosystem,\u201d he said. \u201cWhatever the recipe, each region can learn from others\u2014but with the caveat that every region benefits from maintaining its own flavor.\u201d<\/p>\n

Beyond startups, ecosystem builders working with small business owners also feel the need for local hubs. Among them is Meralis Hood, CEO of EforAll<\/u><\/a>, a nonprofit organization assisting under-represented individuals successfully start and grow a business through intensive business training, mentorship and an extended professional support network.<\/p>\n

\u201cA primary concern for both new and growing businesses within our network is sustained support beyond the initial accelerator program,\u201d she said. \u201cTo address this, we are developing post-program initiatives focused on providing ongoing learning opportunities, networking connections, access to capital, and resources for growth through strategic partnerships.\u201d<\/p>\n

Entrepreneurs are embracing AI, albeit with caution<\/strong><\/p>\n

The 2024 State of Latino Entrepreneurship Report<\/u><\/a> shows that Latino-owned businesses are adopting AI at comparable rates to white-owned businesses, while even a greater number see it as critical to running their operations. 59% of Latino-owned businesses said it boosted worker skills compared to 55% of white-owned businesses. Meanwhile, 74% of Latino-owned businesses said AI increased their operational efficiency.<\/p>\n

\u201cLatino-owned businesses are adopting AI with a higher people-centric approach, leveraging it to enhance operations while fostering workforce growth and upskilling,\u201d said Cazares. \u201cHowever, Latino-owned businesses are more inclined to express caution about future AI adoption. Addressing these challenges through ethical AI frameworks which don\u2019t reinforce societal biases will be key to unlocking AI\u2019s full potential.\u201d<\/p>\n

The impact of AI is felt in networks where startups are just getting their early investments, including Angeles Investors<\/u><\/a>.<\/p>\n

\u201cThis is our fifth year \u2026 and we have seen from the beginning companies in AI,\u201d said Adela Cepeda, Chair of Angeles Investors. \u201cStartups have been using AI to collect, summarize data, to accelerate software development. This has been an existing theme, and our startups are just as engaged in it, if not more.\u201d<\/p>\n

<\/p>\n

Carlos Otaola, CEO & Founder of Urban Tech, investing in founders and transformative technologies in … More<\/span> Latin America.<\/span><\/p>\n

<\/fbs-accordion>Carlos Otaola<\/small><\/figcaption><\/figure>\n

Founders are pursuing international opportunities more than ever, especially in LATAM<\/strong><\/p>\n

Some entrepreneurs are positioning the moment as an opportunity beyond U.S. borders. Among them is Carlos Otaola, CEO & Founder of Urban Tech, investing in founders and transformative technologies in Latin America. He shares that Latin America is at one of the most powerful turning points for tech and transformation globally.<\/p>\n

\u201cWe\u2019re not just talking about untapped markets\u2014we\u2019re talking about deeply human challenges in healthcare, education, mobility, and financial access that are demanding real, scalable solutions,\u201d he said about the growth opportunity in the region.<\/p>\n

Latin America hit record high investment levels in 2023, and in 2024 it remains strong, hitting $4.2 billion in 2024 \u2014 up 27% from the previous year with the rise of digitization, AI and gradual decoupling from the U.S. and China, per Crunchbase.<\/u><\/a><\/p>\n

\u201cIf you grew up in Latin America, you\u2019ve already learned to navigate uncertainty. You develop a sixth sense for resilience, for solving creatively, for moving fast in systems that weren\u2019t built for you. That mindset is a superpower,\u201d Otaola said, a featured guest on Startup Series: Latam with Mariana Atencio<\/u><\/a>, which explores Latin America\u2019s entrepreneurial potential.<\/p>\n

He says his fund, based out of Miami, gives his team proximity to capital, talent and<\/p>\n

U.S. tech ecosystem, while maintaining deep cultural and strategic ties to Latin America. Urban Tech has invested in Colombia, Guatemala, El Salvador, and Venezuela.<\/p>\n

\u201cIf you\u2019re a Latino founder thinking about expanding into LATAM, there\u2019s no better time than now\u2014but timing alone isn\u2019t a strategy, he said. \u201cYou understand the culture, the context, the way things actually work on the ground. You can speak the language, both literally and in how you connect with customers. That\u2019s a powerful advantage\u2014but it\u2019s only your foundation. The rest takes precision, discipline, and local depth.\u201d<\/p>\n

<\/p>\n

Laura Moreno Lucas, General Partner at L\u2019ATTITUDE Ventures.<\/p>\n

<\/fbs-accordion>Laura Moreno Lucas<\/small><\/figcaption><\/figure>\n

Daily adaption is a norm of today\u2019s entrepreneurial environment<\/strong><\/p>\n

\u201cThere was a general shared belief, especially among many VCs, that under this new administration the capital markets would become more liquid and business-friendly, fostering an acceleration in M&A and IPOs,\u201d said Laura Moreno Lucas, General Partner at L\u2019ATTITUDE Ventures<\/u><\/a> and author of Latinas in VC<\/u><\/a>. \u201cHowever, it\u2019s clear that this has not happened, with no deals announced yet and a big risk that these tariffs get baked into prices moving forward.\u201d<\/p>\n

Indeed, while Wall Street expected a successful first quarter for IPOs and M&A under<\/a> the Trump administration, those expectations fell short due to market volatility triggered by new tariff policies and broader geopolitical uncertainty.<\/p>\n

\u201cWe\u2019ve had to consider forward-looking conditions and make quick decisions on all financial aspects of the companies we are supporting and investing in,\u201d Moreno Lucas said.<\/p>\n

She shares that the $100M fund has shifted from a company\u2019s general market opportunity to now examining their operating strategies on a regular basis, assessing what needs to be adjusted, cut, or capitalized.<\/p>\n

\u201cEverything is moving at unprecedented speed, every assumption we\u2019ve held is being challenged, and the markets are so unpredictable that we have to adapt daily,\u201d she said. \u201cThis is not a typical up-and-down, it\u2019s like nothing I have ever seen before.\u201d<\/p>\n

\u201cUncertainty has become the cost of doing business\u201d and preparation is the best antidote <\/strong><\/p>\n

The constant change is felt at every level of the ecosystem, from investors to founders and ecosystem builders.<\/p>\n

\u201cUncertainty has become the cost of doing business \u2014 and for Latino entrepreneurs, that cost is compounding,\u201d said Eneida M. Roman, Esq, CEO of We Are ALX<\/u><\/a>, a collaborative non-profit with the mission of advancing Latino American prosperity and leadership representation in Massachusetts. \u201cPolicies shift without clarity. Relief programs often don\u2019t reach the businesses that need them most. And access to capital remains a persistent barrier. For example, while a 90-day tariff pause may steady the markets, it does little to help small business owners plan their next hire, place a bulk order, or secure a loan. When the rules keep changing mid-game, growth stalls \u2014 not because of lack of will or vision, but because the foundation keeps shifting.\u201d<\/p>\n

Critical to staying ahead, however, is staying informed and prepared. Roman recommends employers have clear protocols in place, designate a point person for agency visits, and stay connected to legal resources like Lawyers for Civil Rights or the MIRA Coalition.<\/p>\n

\u201cStaying informed isn\u2019t about fear \u2014 it\u2019s about being ready to lead with confidence,\u201d she said.<\/p>\n<\/div>\n

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