[MUSIC]
Great afternoon, I'm Mark Madrid, CEO of
the Latino Business Action Network, LBAN.
Thank you.
>> [APPLAUSE]
>> It is a wonderful day,
isn't it, talking about US Latino and
Latina entrepreneurship?
And on behalf of the LBAN board and team,
we welcome you to the fifth annual State
of Latino Entrepreneurship Research Forum.
The Stanford Latino
Entrepreneurship Initiative, SLEI,
which is a collaboration between Stanford
Graduate School of Business and LBAN,
is an American economic imperative.
And it's official,
our nation is taking note.
And we are most grateful for
your taking precious time and energy and
resources to join us today.
And we thank Stanford Graduate School of
Business and their entire ecosystem and
teams for their outstanding and
diligent efforts to make this
event a resounding success.
In addition, LBAN thanks our
principal partners, Wells Fargo and
Fox Corporation,
lead investor, Bank of America,
lead sponsors Chavez Family Foundation,
Pitch Johnson, John Arriaga, and
all of our sponsors and strategic partners
for their enduring support of LBAN.
And our efforts in funding
this powerful research.
And now, it is my honor to
introduce Professor Jerry I Porras,
the Lane Professor of Organizational
Behavior and Change Emeritus GSB and
faculty advisor for the Stanford
Latino Entrepreneurship Initiative.
Thank you.
>> [APPLAUSE]
>> Well, I'd like to also extend my
welcome to all of you for being here.
[COUGH] And
this is a significant event for all of us.
And we hope that the information that you
get today both about the research and
some reactions from entrepreneurs
about the data, and
also principal address by a very,
very successful Latina business owner.
That all of that put together will make
for a really good session this afternoon.
I wanted to put a little bit of
context around what SLEI is and
how our efforts are varied,
and this is just one of them.
So that you can get a better
understanding of how this research and
this forum fits into a broader
array of activities and
actions that we at Stanford and LBAN are
taking in order to try to influence and
impact Latino owned businesses and
really impact the health the US economy.
The Latino Business Action Network,
LBAN, was created,
it's a 501(c)(3) organization and
it was created by a group of
Latino MBA alumni and myself.
And we got together and talked about
what is it that we can try to impact
the society and the health of economy
of this country over a longer term.
And out of that, we decided to create
this nonprofit whose long term
purpose was to strengthen United States
by improving the lives of Latinos.
And we're saying it that
way because Latinos
are right now a significant
portion of the society at 17%.
And in not too many years,
not too many decades,
Latinos are going to be
about 30% of the country.
So in order for the country to prosper,
to be economically healthy,
Latinos are going to have to prosper and
be economically healthy.
So, that's kind of where we began.
Now, with that very long term purpose,
we asked ourselves, what's more
of a short term mission that we can do
to try to promote this long term end?
And out of that came the notion that
we would want to create an alliance or
a collaboration with Stanford
to try to execute on a series of
programs that we thought
were important to generate.
We have these two entities.
We have
the Latino Business Action Network, and
we have the Graduate School of Business.
These two entities have come
together in a collaboration to
create the Stanford Latino
Entrepreneurship Initiative.
Now the model that we've been
following is that LBAN generates
ideas about substantial programs or
projects that could
serve to move the country in
the direction that I just described.
So it comes up with ideas, it goes out and
it secures resources, it secures funding.
And it also provides staff support for
the execution of these program
ideas that are generated.
Now, LBAN doesn't have
the resources to do this or
the expertise to do the sort of things
that we're wanting to get done.
So it creates a collaboration
with Stanford and
Stanford faculty members to execute
on some of these major ideas.
So one major ideas was,
let's do a research study of
Latino-owned businesses
across the country.
How do we get that done?
Stanford has the resources,
the expertise, the faculty members,
that can execute on that.
So Stanford provides faculty,
it provides researchers, and
it provides administrative support for
the execution of various projects and
programs that are generated out of LBAN.
So it's a really nice symbiotic
relationship in which LBAN has created
resources that help faculty at Stanford
execute on a variety of activities,
research and education included.
So out of that, then the Stanford
Latino Entrepreneurship Initiative has
three major thrusts
that have been created.
One is we call the SLEI research thrust.
And this program and the study that's
driving this program is a product of that.
We have SLEI education and
we have SLEI ecosystem, and
I'll just say a couple of
things about each one of those.
So in the SLEI research area,
we do the national research study of
around 5,000 Latino-owned businesses and
we write reports on them.
We've created a massive database
of Latino-owned businesses.
We do spotlight types of researches
that focus on very specific arenas.
And we do those often in collaboration
with outside entities like,
we have one study that was done with
the Federal Reserve Bank of New York.
And so these are more focused and not
as wide ranging as the national survey.
We track the alumni from the SLEI
education program to find out
how are they performing after they've
entered and passed through the program.
We want to know are they being successful
in the way they want to be successful and
why or why not?
So we're tracking that information.
And finally,
we created a group of faculty members,
academics, and
researchers from across the country,
that we coalesced them into
a group three years ago.
And we got them talking about Latino
research because the research on Latino
entrepreneurship is really limited.
And we wanted to try to promote that on
a national level and the way that you do
that is you get faculty across
the country interested in doing it.
So we got a group of faculty together and
after two years of conversations,
we created a book of readings which
is going to come out in April.
And there was a flyer
at the desk in front.
If you didn't see it,
grab it on your way out.
So this is the book of readings it
was generated out of this polling
together of faculty and
other academics from across the country.
It's an exciting project, we expect that
we will probably repeat that cycle along
with different themes in the future.
But it's hopefully trying to build
a nucleus of people interested in doing
research on Latinos.
The second part of our effort
is a slight education program.
This is a program that's focused
on helping companies to scale.
What we're trying to target is
companies that want to be really big.
Because we think that really big
companies are the ones that can really
influence the society,
the economy of the society,
the social structure of the society,
and so on.
So a lot of change can happen if there
are a significant number of very
large Latino owned businesses.
And so we're talking about billion
dollar businesses and plus, and
that's what we're trying to promote and
motivate through this scaling program.
It is the creation and
the growth of companies, so that they'll
breach those levels and begin to influence
the economy and the country as a whole.
This will bring more wealth into the
Latino communities, provide more jobs for
more people, some of them will be Latinos.
And in an as really strong positive way,
contribute to the health of
the economy of this country.
So this program is an online program.
It's a hybrid program, two days at
Stanford, six weeks online, and
then a day back at Stanford.
We run two cohorts a year,
approximately 75 to 80 per cohort.
I think we have a substantial number of
people who have completed that program.
Maybe you can just raise your hands to let
everybody know that you are a part of it.
>> [APPLAUSE]
>> Welcome.
>> [APPLAUSE]
>> So
this is an example of us having an idea
of wanting to create a scaling program.
And then finding a faculty member,
Professor Huggy Rao,
in the business school,
who had created an online program, he and
his colleague Bob Sutton had created
an online program that focused on scaling.
So we took that program and
we Latinolized it,
we add things to it that made it very
specific and special for Latinos.
So we added role model videos
of successful Latinos who had
scaled their companies and
could provide good examples.
We added webinars that
focus on getting money,
the types of money that's out there,
how to go about getting it.
We created mentors so that each
participant has a mentor that they meet
with one hour a week during the program.
And many of those relationships have
continued on well after the program.
We've created network of capital providers
that come in at the end of the program and
interact with the participants,
because getting capital is a really
significant part of growth.
We all understand that.
And then we've created a participant
network of the people that are going
through the program are all
networked together and
they interact on an ongoing basis.
When they're sharing problems or
sharing resources.
One of the things we try to
promote in this program is
doing business with each other and
getting business for each other.
And the use of that network has been very
potent in helping to contribute to that.
So the third part then is
our SLEI ecosystem activity.
In this we're trying to really build
an ecosystem around Latino entrepreneurs,
that will help them be more successful.
And this system in large part is drawn
from the ecosystem we've developed in
the scaling program.
So we have mentors that are part of that,
we have capital providers,
we have this alumni base for all of the
participants of the program, of which we
now have like around 580 participants
who have completed the program.
And we're trying to get them network and
have them network with each other,
because it's amazing how much support,
and how much energy, and
how much drive can be generated
through that network.
We also are bringing together groups
of organizations across the country
who have interest in Latino
entrepreneurs and in Latino businesses.
Organizations like
the Spanish Chamber of Commerce,
various minority suppliers organization,
Latino professional groups, and so on.
So the idea is to really begin to build
more and more of a supportive network for
Latino entrepreneurs to be successful.
So that's what SLEI is all about.
It's a collaboration,
LBAN and Stanford, and
it does three main things, teaching,
research, and ecosystem development.
So with that, I'll close and
introduce Inara Tareque,
who is one of our researchers,
who will then give you an overview of
what it is with the research activity
that we're going to be doing.
Thank you.
>> [APPLAUSE]
>> Thank you so much, Jerry.
And it's a pleasure for me to offer
an additional welcome to all of you here.
It's really exciting to
see such a large crowd.
It is now time for us to review our
latest research of the 2019 State of
Latino entrepreneurship report,
generated from our fifth annual survey
of nearly 5,000 US-Latino entrepreneurs.
This research presentation
will be split into two parts,
you will first hear from Professor
Paul Oyer, Professor of Economics,
and Senior Associate Dean at
Stanford Graduate School of Business, and
he's also faculty advisor of the Stanford
Latino Entrepreneurship Initiative.
Among other topics,
Paul will share key demographic
trends that we observe among US
entrepreneurs, and also highlight
important characteristics of Latino owned
businesses that we have identified.
You will also hear from Marlene Orozco,
lead SLEI research analyst,
who will discuss our other key findings.
To name a few,
those would be Latino business financing,
liquidity challenges,
procurement contracts, and
personal financial well being
of Latino entrepreneurs.
So ladies and gentlemen,
it is now my honor to introduce to
this stage, Professor Paul Oyer.
>> [APPLAUSE]
>> Welcome everyone.
I'm Paul Oyer, the faculty director
along with Jerry of course, of SLEI.
And I got involved in this a few years ago
when I was one of the faculty directors of
the GSB Center for
Entrepreneurial Studies.
And over the last few years, I've had
the good pleasure of working with Jerry of
course, but also with Marlene and
Inara, who have pushed our
research agenda forward, and are extremely
devoted to the research goals of SLEI.
I also want to note in passing because
Jerry asked how many of you are SLEI at
alarm, I just want to note in passing
that I've also had the good fortune to
spend some time with each of the SLEI
ad groups as they come through,
and it is always one of
the highlights of my teaching year.
They're an incredible group of people,
and we look forward to many
more cohorts coming thorough.
Marlene's much closer to
the details of this than I am, and
she and Inara have devoted so
much energy to do this, that I'm
going to let her go through the report.
But let me just bring up a few
higher level themes here.
So this is figure one from our
report that we're releasing today.
So first of all, as a labor economist
who studies entrepreneurship, I'm
interested in the fact that it's pretty
well-known now that entrepreneurship or
using a more narrow definition here,
which is self-employed people.
But entrepreneurship in
general is actually down
in the United States over the last
period of time for various reasons.
You would not be under that
impression if like me,
your day job was at the Stanford Graduate
School of Business where all you ever hear
about is entrepreneurship,
entrepreneurship, entrepreneurship.
But in general in the greater economy,
entrepreneurship levels have actually come
down, and Latinos are bucking the trend.
So among the Latino population, the rate
of entrepreneurship is actually up.
Now, I could be worried if I
looked at this about two things.
One of them is you might say, well, maybe
Latino entrepreneurship is up because
Latino opportunities in the labor market
aren't as good as some other groups.
And at first I sort of worried about that,
but as in our report, we have a graph.
We have some results that suggest
that the entrepreneurship rate among
Latinos is just as much oriented
toward seeking opportunity rather than
not having something else
they can fall back on.
So that's somewhat reassuring.
But the other thing I would note and this
is not just the last Latino group, but
again, don't let the fact that you're at
the Stanford Business School color what
you think of here.
Most of these businesses for
Latinos especially, but for
all groups are not Silicon Valley things
that are going to become unicorns
they're mostly small groups often
companies often with no employees.
And that's what you should be thinking of.
And that's fine, but
what Slay is focused on isn't
making every Latino
entrepreneur a huge success.
It's making the share of those
entrepreneurs within Latino community that
really want to grow,
make that more representative of
the overall entrepreneurship out there.
Okay, so
that's how we think about it there.
And you're going to see some examples
of that during the panel and
throughout the day.
So there are some certainly some
optimistic signs on the horizon.
Just this graph for just takes you through
a different, takes you to another data set
that basically says the same
thing in a different way.
And that is more Latinos are moving
into entrepreneurship at
a faster clip than any other
demographic group we analyzed.
And so entrepreneurial entry is
very high in this particular group.
This is another figure from our
report which shows that while scale
is not that high among these businesses,
growth is the norm among
Latino oriented businesses,
especially in certain subsets.
So those firms that have sort of
already grown to have some scale and
employees, those are growing even faster.
But, just in general,
most firms are growing their business,
and that's good to see.
Although, they're not reaching scale
maybe as quickly as we'd like.
And that's the last graph I'll highlight.
This comes not from this current research
report, but a supplementary one we put
out last year on the entrepreneurship
gap between Latinos and other groups.
And this is I love this funnel we created,
because it gets at
the challenge of scaling for
Latinos on the left-hand side relative to
other entrepreneurs on the other side.
So relative to other populations, Latino
entrepreneurs are less likely to break
through from self-employment to
an enterprise with employees.
And they're also less likely then to move
from that level to a scaled business
of a million dollars or
something like that and higher.
So as we focus on in this report and
some some and some of our prior reports,
a lot of that distinction is
driven by access to capital.
Okay, and
there's a very nice Bloomberg article that
already came out today
studying our new report.
And the headline, I think it's fantastic.
We should have thought of this and
put it in our report ourselves.
The headline is Latinos are building
businesses but they don't get much credit.
And so that's kind of a theme we
come back to within our report.
And that you'll hear more
about from Marlene and
I'd be curious to hear what
the panelists have to say as well.
So Slay and Slay research.
That's our goal, as Jerry said,
is to try to change that.
And we're hope we're making some
contributions along the lines.
I'm certainly looking forward to what
our panel has to say about this.
And other challenges faced by
the population we're describing here.
But before we get to the panel,
let me introduce Maureen Orozco who
will dig a bit more into
detail about our report.
>> [APPLAUSE]
>> [FOREIGN]
>> Excellent.
It is a real honor and pleasure to be
here with you all today to share key
findings from our 2019 Slay Survey
of US Latino business owners.
And for the past five years,
we have collected survey data from Latino
owned businesses across the country
to provide an updated account of
the latest trends on Latino
entrepreneurship in the United States.
While there are other
several business surveys,
namely those from the census,
we build off of these insights and
dig deeper into the Latino entrepreneurial
profile and growth experiences.
We know that this is an increasingly
important segment of the business
population, given the constant upward
trend which Paul just showed you all,
a new business formation.
Over the past ten years, the number
of Latino business owners grew 34%,
this is compared to 1% for
all business owners.
What's more,
even with unemployment rates at a 50
year low of 3.7%, it's 4.2% for Latinos.
Business ownership continues to be
an important part of the labor market
experience for Latinos.
And as you may know, I see several
faces in this audience today,
we've been at this for a while now.
And a constant theme in our research
is that we know that the funding
experiences of Latinos forms
an important part of their growth.
Businesses that have external sources of
funding are more likely to be scaled or
generate at least a million
dollars in annual revenue or more.
And in the state of that
the entrepreneurship report that we
are releasing today, we share insights
into a funding framework that identifies
the sources of capital that
yield the greatest success.
We've also created an index to
measure an entrepreneur's personal
financial well-being.
And lastly, we build off of the growth
framework that we discussed last year to
share the characteristics and strategies
prevalent among Latino-owned firms that
have successfully grown their revenue or
their number of employees.
And the corollaries of success outlined
in our reports may be interesting for
Latino firms seeking to grow and
those of you in the audience who
wish to support this growth.
And then what follows I'll be presenting
key findings based on the analysis of
the 2019 Slay survey of
US Latino business owners.
So we'll start by reviewing
a few key findings.
And I'm glad I can navigate this.
It looks like my Apple TV control.
So first, we have historically
collected detailed data on the types of
funding Latino business owners access.
This year, we add a new
dimension to our new analysis.
For each type of financing sought,
we analyze the relationship
between the amount of funding requested
and the success rate in acquiring it.
And we find that business size matters.
And it makes a significant difference and
the type of funding that is sought or
successfully secured by
Latino owned companies.
It is in fact the costlier and riskier
capital that is ultimately sought and
obtained among unskilled Latino firms or
those that are making less than
a million dollars in annual revenue.
Related to business finances, we also
find that Latino owned skilled firms and
firms with sustained revenue growth
tend to have higher liquidity.
But having employees on payroll
correlates with liquidity challenges.
Last year, we shared a growth
framework with procurement contracts
making the top of the list.
This year, we dig deeper into
contract opportunities and
find that government is out-sizing
corporations on average
contracts among Latinos by
a factor of two to one.
Next, we consider the importance
of place based policies and
find that while opportunities
zones incentivize the economic
development of low to
moderate income communities
Many Latino entrepreneurs
are simply unaware of this policy.
And if we consider where opportunities
zones have been designated, we find that
Latino owned businesses located in these
zones actually have higher revenue growth.
Lastly, we advanced the personal financial
well being index based on average income,
home ownership and
health insurance coverage.
We find that Latino business owners
experienced lower personal financial
well being than other US entrepreneurs.
However, Latino entrepreneurs are catching
up, their financial well being
has grown faster than that of other
entrepreneurs over the past nine years.
And compared to Latino wage workers,
Latino entrepreneurs earn more and
are more likely to be homeowners, but
we do find that they lag significantly
behind and health insurance coverage.
So I'll detail all of these key
findings one by one in what follows and
we'll start with a detailed look at
Capital through a funding framework.
Our national survey of over 5,000 Latino
owned businesses has historically
considered a number of capital sources,
including institutions such as banks and
government loans, and
other types of debt like credit cards and
a variety of equity sources VC,
Angel private equity.
For each type of capital that
was sought in a 12 month period,
we consider the amount
of financing requested.
And we've simplified it
here into two groups,
a low amount which is less than $100,000,
and a high amount over 100,000.
Among those who apply for
financing of any type,
we add another level of categorization,
the amount approved.
Having none or some of the funding
approved is what we deem the low category.
And having most or all of that
funding approved is the high category.
We then took these categories and
created a two by two table.
We wouldn't be at a business
school if we didn't create one.
And so we advance this funding framework.
And this funding framework applies to all
of the financing types in our survey.
So if we start with the lower right
hand quadrant, quadrant number 4,
it combines the high amount of financing
requested with the high amount approved.
And we named this group as
having their large needs met.
If we consider a low amount
requested less than 100,000 and
having most or all of that request filled,
we call this group the small needs met.
And you can see that the other two
groups have their needs unmet.
That is they apply for a high or
low amount and received none or
only some of their funding requested.
For our analysis we focus on those
that have their funding needs met.
This first scatterplot considers
the large financing amounts requested for
each type of capital among both
skilled and unskilled firms.
The X axis indicates the total
percent of firms that applied for
that particular funding.
And the Y axis shows what percent
of firms that applied and
have their funding needs met.
I should note here that the average
Latino business owner has requested
financing from two sources and
over 40% applied for
some type of external funding
source in the last year.
So for skill firms on this scatterplot,
which are the blue dots, we see that local
banks have the greatest percent of
firms getting their funding needs met.
For unskilled firms factoring yields
the greatest percent of firms having
their funding needs met but
only a small percent apply for this type.
At a basic level,
when factoring a business sales its
accounts receivables at a discount.
So this type of financing while convenient
comes out a relatively high cost.
And on the whole, we tend to see that
unskilled firms are resorting to financing
that comes at a greater personal
cost to the owner and the business,
such as relying on personal
credit cards for factoring.
This next scatterplot considers financing
of any size and here we similarly see that
not surprisingly, scale of the company
correlates with funding success.
Most of the blue dots again, those
are the skilled are at 50% or higher for
the percent of firms that had their
funding needs met by that type of source.
What is surprising, however, is that when
we consider all types of funding sought
and successfully received neither having
revenue growth in the past year nor
profitability shows strong
correlations with whether or
not a business was successful
in securing financing.
Ultimately it's business size or
scale that matters.
And funders may be considering other
characteristics beyond revenue growth or
profitability, which are really signals of
potential and small business track record,
when they're lending or investing.
Certainly, future studies should
consider the perspective and
the practices from the capital
provider side to provide more insight.
We now turn to another key finding
related to business finances.
Our survey asks a battery of questions
related to liquidity, or the availability
of liquid assets such as cash,
equipment, inventory and other assets.
Here you can see the distribution
of Latino owned businesses by
months that the business could
operate with available cash.
Well, the majority of businesses can
operate for four months or less,
we note that over one quarter of Latino
owned businesses can operate over a year,
so not all are strapped for cash.
However, having cash on hand is
not the only measure of liquidity.
As aforementioned, we asked about
liquidity in a variety of ways,
including having cash on hand the impact
of the length of terms of payment, and
having to cover business expenses
through personal credit cards.
We create a composite measure of
liquidity with anything above or
below the average representing overall
high or low liquidity respectively.
Not surprisingly,
we find that skilled firms and
those with sustained revenue
growth have high liquidity.
But Latino owned employer firms
struggle with liquidity compared to
non-employer firms.
And one of our previous reports, we
identified that the main hurdle of Latino
owned businesses is crossing
the employment threshold.
That's going from a solopreneur or
having an entrepreneur without
employees to becoming an employer
business, a business with paid employees.
This means that for employer firms,
the availability of cash and
other financing issues poses
challenges for continual growth.
We move now to strategies and
opportunities that are positively
correlated to scale.
Last year, we presented a growth framework
and highlighted a number of these
characteristics, such as being
a registered business, exporting, and
being certified among others.
This year, we dig deeper into some
of these like certifications and
explore new ones.
For procurement contracts,
5% of Latino-owned firms have a contract
with a corporation and
4% have a contract with the government.
When asked about factors
limiting their growth,
9% of all survey respondants report
difficulty in participating in request for
proposals, RFPs to compete for
procurement contracts.
And 10% report a lack of awareness
about supplier diversity programs.
And as shown in this table,
the average contract amount varies
by type of contract and region.
The average contract amount for
government is twice that of corporation
about 525,000 and 262,000 respectively.
Among those who contract with corporations
on average men, Latino men have
contracts that are twice the size
of those contracted by Latinas and
more US native born Latinos than immigrant
Latinos contract with the government and
have higher average contract amounts.
So while there's some gaps between Latino
subgroups on the whole contracting is
a viable growth strategy.
And again,
we show that this is correlated with
growth in our framework from last year.
Even as shown in the differences in
contract amounts across regions we know
that place matters.
When considering a new place based
policy known as opportunity zones,
we find that these policies may provide
benefits to Latino business owners, but
the majority are unaware or
unsure of what they are.
First in this map here,
we see the distribution of over 9,000
opportunities zones across the states.
The Tax Cut and Job Acts of 2017
created opportunities zones as a way to
incentivize economic development and
job creation and low income communities.
The opportunity zone incentive encourages
business investments through reduce up
through deferred and reduce capital gains
taxes with all capital gains taxes waived
if the investment is held for ten years.
The zones are designated in states across
25% of their low income census tracks.
And there's a strong correlation between
states with large numbers of Latino owned
businesses and opportunities zones and
California has the highest
number of opportunity zones.
Followed by Puerto Rico,
Texas, New York, and Florida.
And Rebecca Lester and team here at the
GSB have a really great interactive map
online on opportunity zones,
which I encourage you all to check out.
Overall, we find a general lack of
knowledge about opportunity zones within
the Latino business community.
We find that 14% of Latino
owned businesses are located
in an informally designated opportunity
zones as linked by their zip codes.
But among these only 28% know that they
are located in an opportunity zone, 47%
do not know, and 25% incorrectly believe
that they are not in an opportunity zone.
Latino owned businesses in opportunity
zones have a higher average annual revenue
growth rate compared to those not
in opportunity zones, 24% and
13% respectively.
I do want to make it clear that we are not
implying that Latino business revenue
growth is a direct result of being
located in an opportunity zone.
But we do find that areas designated
as opportunity zones are not
currently experiencing
stagnant business growth,
even though they are low to
moderate income communities.
So I want to move now to
our last key finding.
We highlight and
under studied part on entrepreneurship
as a pathway of social mobility.
We compare income, homeownership rates and
health insurance coverage among
entrepreneurs and wage workers across
four major racial and ethnic groups.
We find that Latino
entrepreneurs earn 10% more and
are 6% more likely to be homeowners
compared to Latino wage workers, but
they lag significantly in
health insurance coverage.
And this figure here looks at
these three components across
time between 2008 and 2017.
Income differentials make up
that top set of bar graphs.
For Latino entrepreneurs, compared to
white entrepreneurs, income remained
constant, as did differentials
in percentages of homeownership.
In the area of health insurance, the gap
in percentages between the two groups was
narrowed considerably,
because of much larger numbers of Latino
entrepreneurs gaining coverage in
2017 as compared to 10 years earlier.
Where we see some important gaps is when
we compare entrepreneurs to wage workers.
We created an index which includes
these three components, again,
income homeownership and health insurance
and find that overall, Latino wage
workers are more personally financial
well off than Latino entrepreneurs.
But this mostly has to do with Latino
entrepreneurs lacking in health insurance
coverage.
63% of Latino entrepreneurs have health
insurance coverage compared to 78% for
Latino wage workers.
This is the largest gap among all groups,
and it also represents the lowest rates of
health insurance coverage compared
to all demographic groups.
And as shown in our report, Latino
entrepreneurs outperform Latino wage
workers and income and
homeownership rates.
So with that,
there's still much work ahead in ensuring
a level playing field for Latinos.
This year the SLEI survey of US Latino
business owners provides a financing
framework to better understand effective
capital sources in the funding experience
of Latinos.
We also highlighted growth strategies and
opportunities for Latino business owners.
As it relates to social mobility and
leveraging entrepreneurship for
wealth creation in the Latino community,
we uncover some important areas for
policymakers and
other stakeholders to consider.
As a final note, given that we're one
month into 2020, I want to encourage you
all to be counted not only on the census,
but you're taking surveys like ours,
that help inform our understanding
of the business owner ecosystem.
And lastly, as always, I encourage you
all to read our 2019 state of Latino
entrepreneurship report to learn
more about these findings and
many, many others that we
could not cover today.
Thank you.
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