At this time last year, Latino and immigrant entrepreneurship was surging. Between 2018 and 2023, Latino-owned businesses grew by 44%, fueling a record-breaking small business boom and contributing over $650 billion in annual revenue. Latino and immigrant entrepreneurs have consistently launched businesses at twice the rate of the general population, boosting key sectors such as construction and manufacturing. Nearly half of all Fortune 500 companies were founded by immigrants or their children.
Yet, this momentum is at risk. Harsh anti-immigrant policies are threatening to stall progress. With growing hostility, many local economies are faltering as fear of immigration raids keeps people indoors. Even immigrants with legal status are spending less at neighborhood restaurants and shops, prioritizing legal expenses and contingency plans for their families instead. These destabilizing effects—combined with trade disruptions and cuts to federal small business programs—are putting America’s economic vitality in jeopardy.
The dream of business ownership in America has always been about more than just personal achievement. It’s about creating vibrant local economies where anyone with determination can succeed. Thriving small businesses generate jobs, fund local services through taxes, and help build community wealth. Investing in emerging entrepreneurs strengthens the entire U.S. economy.
As advocates for Latino economic empowerment and entrepreneurship, we see three urgent priorities to unlock the full potential of Latino and immigrant business owners:
1. Restore and expand support systems.
Congress must reinstate baseline federal funding, and philanthropic organizations should continue—or increase—their support for small business growth. This includes funding small business assistance centers and accelerators, which provide vital coaching on business planning, cash flow management, and navigating complex government contracts. Coaching is especially critical during times of crisis, such as natural disasters or tariff changes. Proposed cuts to the U.S. Small Business Administration and rural programs through the U.S. Department of Agriculture would severely limit access to these resources. The recent dismantling of the Minority Business Development Agency, which will shutter many centers in diverse communities, further threatens equitable support.
2. Strengthen access to capital through community lenders.
Philanthropy and policymakers must boost investment in community development financial institutions (CDFIs) to ensure Latino and immigrant entrepreneurs have fair access to funding. Latino-owned businesses are half as likely as their white counterparts to receive full funding. CDFIs fill this gap by lending to enterprises that traditional banks overlook—from food carts to barber shops—while understanding the unique financial realities of immigrant communities. Despite this, Latino-led CDFIs account for only 15% of California’s CDFIs. To address the disparity, the Latino Community Foundation launched the Latino Capital Accelerator, with support from organizations like the CAMEO Network, which helps train and expand the capacity of Latino-led institutions serving over 300 businesses each year.
3. Confront discrimination in business lending.
Policymakers must address bias in lending practices so that entrepreneurs are not denied funding based on their name or appearance. According to the Federal Reserve, Latino business owners are rejected for funding at twice the rate of white owners. A rule finalized by the Consumer Financial Protection Bureau would have helped track demographics in small business lending to combat discrimination, but enforcement has been stalled by the current administration.
America stands at a crossroads: one path embraces the talents and drive of immigrant and Latino entrepreneurs, while the other narrows the definition of who gets to succeed in this country. The data speaks for itself—an inclusive economy is a stronger economy.
Small business ownership remains a cornerstone of the American dream. For immigrants and their children, entrepreneurship offers a tangible path to prosperity. If Latino-owned businesses earned revenue at the same average rate as white-owned firms, they could add $1.1 trillion to the U.S. economy. Supporting immigrant and Latino entrepreneurs is not just about fulfilling individual aspirations—it’s about building a more resilient, equitable, and prosperous nation.
Targeting immigrant communities weakens the economy. But when Latino businesses thrive, America thrives. It’s time for our institutions and policies to reflect that truth.
