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Hispanic Americans starting businesses at fastest rate in more than a decade, report finds

city of milwaukee
Posted at 11:46 AM, Apr 28, 2022
and last updated 2022-04-28 19:42:43-04

MILWAUKEE — It's opening night for Juan Magdealeon and his partners at their new restaurant Tulum Latin Gastropub. And he's lending advice to young Hispanic entrepreneurs looking to open a business of their own.

"We have to inform ourselves on what's out there," said Magdealeon. Follow your dreams, 100%, don't feel discouraged to tumble and fall. It's scary but if we don't take that risk, there's no gain and there's no loss at the end of the day."

Magdealeon is part of a growing trend of Hispanic Americans across the country starting new businesses 23% faster than before the pandemic.

Hispanic Americans started new businesses at the fastest rate in more than a decade, a 2021 small business report released by the White House on Thursday found.

"It's an exciting time for Hispanic entrepreneurs no doubt," said Jorge Franco, the chief executive of the Hispanic Chamber of Commerce of Wisconsin.

Franco says he's seen the development of new Hispanic businesses boom over the last couple of years, with mainly Latina business owners dominating the field.

"From 2020 to 2021 over the 24-month window, we are easily in the hundreds of startups and heavily in the microenterprise space," said Franco.

But while Franco says he's happy to see the growth in new Hispanic businesses in Milwaukee, he says it's still important to take care of the established businesses hit hard by the pandemic.

"Where we've seen great challenges is in those existing small businesses that have either had to cut back or shut down," said Franco.

That's why he said he's pleased to see the government expand access to capital to help businesses like these survive.

"It is the fuel that drives the Hispanic super highway growth and it really is needed," said Franco.

The Tulum Latin Gastropub will now be open Monday-Sunday from 11 a.m.-2 a.m.

According to the latest 2020 Census data report, the Hispanic Latino population rose by 7.6% in the last decade, making up 447,290 Wisconsinites - the state's largest minority group. The rise is not only happening here in Wisconsin, but also beyond. According to the U.S. Census report, the Latin Hispanic community is the largest minority in the country, making up 18.7% of the country's population.

The 23-page report on Thursday states 5.4 million businesses were created in 2021, and small businesses created 1.9 million jobs in the first three quarters of 2021.

The White House hopes to offer more than $300 billion in loans and equity investments through 2030. They also want to expand Small Business Administration financing programs.

The White House further wants to increase access to Federal Small Business Programs; invest $100 million in the SBA's Community Navigator Program; and double funding for the Minority Business Development Agency.

"This new White House report details the historic recovery for America’s small businesses and demonstrates how the Biden-Harris agenda laid the foundation for this small business boom. By focusing on combatting the pandemic, providing Americans with greater financial security, and delivering more than $450 billion in emergency relief to small businesses, the Biden-Harris Administration has helped create the conditions for unprecedented business and job creation," according to the report.

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