How Latino-Owned Businesses and Entrepreneurs Are Driving the U.S. Economy – The Mercury News

How Latino-Owned Businesses and Entrepreneurs Are Driving the U.S. Economy – The Mercury News

Iran Sanchez Salazar and Daisy Orosco pose in front of the pop-up coffee cart. The business and real-life partners started their coffee brand, Malcriada, in 2022, selling coffee throughout Southeast Los Angeles. (Courtesy of Malcriada)

For 27-year-old Eran Sanchez Salazar, being a Latino entrepreneur in Los Angeles is a source of great pride.

The Bell resident, who spent two years in Mexico waiting for his permanent residency papers to arrive, took that time to hone his craft and pursue a career in specialty coffee. Now Sanchez Salazar co-owns a coffee brand called “Malcriada,” with a menu inspired by Mexican and Chicano heritage and culture. In 2022, Sanchez-Salazar and his girlfriend began making and selling beans and blends at pop-ups throughout Southeast Los Angeles.

“I think for me, being a Latino-owned business is something I take with me wherever I go,” Sanchez-Salazar said. “For us, this is very important. It is part of our mission: to preserve the culture we inherited and share it with others as well.

Sanchez-Salazar is among a growing number of Latin Americans pursuing entrepreneurial dreams — and whose demographic has become a major driver of American economic growth. The new reports, released in mid-September and October during Hispanic Heritage Month, show that Latinos in the United States are driving the economy forward — as both consumers and business owners. As older non-Latino workers retire, research shows that younger Latinos are entering the labor market, contributing through personal business, spending, and tax revenues.

With nearly 5 million Latino-owned businesses across the country, Latinos generate more than $800 billion in annual revenue, according to a report by the U.S. Department of the Treasury and the Stanford Latino Entrepreneurship Initiative, released Oct. 12. The United States is home to more than 62.5 million people. Latinos represent 19% of the U.S. population, the report says.

The total economic output of American Latinos reached $3.2 trillion in 2021 — up from $2.8 trillion in 2020 and $1.7 trillion in 2010, an annual study conducted by the UCLA Health Center for the Study of Latino Health and Culture and California Lutheran University shows.

The report also noted that Latinos in the United States have the fifth-largest GDP — gross domestic product, a measure of the total value of goods and services — in the world, which is larger than that of India, France or the United Kingdom, and represents 7.1% growth. Adjusted for inflation, it surpasses the $3 trillion mark for the first time, researchers said. These numbers are driven by rapid gains in income for Latinos, researchers said.

California also had the largest Latino economic output in 2021, at $682 billion — followed by Texas and Florida, according to the Latino Donors Association’s latest U.S. Latino GDP report, published in late September. With increasing consumption and purchasing power, California’s Latino economy alone will rank twenty-first in the world, between Poland and Switzerland.

Despite economic challenges, business closures, and high unemployment rates during the coronavirus pandemic, more Latino entrepreneurs are starting their own businesses.

Research shows that nearly 25% of all new entrepreneurs in 2021 were Latino. Areas with a higher percentage of Latino and Black residents saw significant increases in business application rates in 2020. Also, from 2019 to 2022 — during the pandemic and as businesses continued to recover — average weekly earnings increased 2.4% for Latino workers, which What represents inflation? Unemployment rates in this community also reached a record low last September, at 3.8%, according to the Department of Labor.

Among these numbers: Young Latinos are joining the workforce, spending and starting businesses.

The Latino Donor Collaborative report emphasizes that this demographic is “significantly younger” than other groups. Most are under the age of 25, with the most common age group being 10 to 14 years, compared to 60 to 64 years among non-Hispanics.

The report says that a combination of “strong population growth, high labor force participation, and increasing human capital will continue to drive the dynamic growth we have seen to date.”

More Latinos also graduate—albeit at lower rates than their white peers—and become employed. It’s this influx of working-age Latinos, coupled with economic progress, that’s making a difference, said Sol Trujillo, co-founder of the Latino Donors Collaborative.

“Hispanic GDP is growing larger every year, simply because of age. It’s a younger demographic.” If you take all the Anglo Americans in the country, ages zero to 100, the most populous age for that group would be 58. And if you take all the Latin Americans in the category from zero to 100, the most populous age would be 11.” Trujillo. “There are a million Latinos in the country who turn 18 every year… and they now provide nearly 80% of all workers.” In our economy.”

With their “all-round youth, strong work ethic, deep family values, entrepreneurship, healthy lifestyle and patriotism…Latinos are poised to power the U.S. economy into the mid-21st century, while continuing to be a source of economic strength and resilience that benefits everyone,” researchers said. From the 2023 Latin American GDP report.

The growing purchasing power of Latinos and their representation

Being able to express themselves and pursue your passions, while making a living, is a top priority for many Latino small business owners. These young creatives are just getting started.

Coffee connoisseur Sanchez Salazar was proud to hear about Latino GDP growth. He and his business partner hope to one day open their own Malcriada Café in Southeast Los Angeles

“I think this information is good to know how much of this country we carry on our shoulders,” he said. “I like to believe that I’m one of those people who works hard and does things without expectation. For generations, we don’t necessarily expect the best working conditions, the best benefits… Latinos are here to contribute. We’re not independently exploited.”

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