If you are a fan of Pitbull, you must have already heard his new single named “I believe That We Will Win”. It was just after the release of this song that Armando Christian Perez, better known by his stage name “Pitbull” said that he will do all he can to help Latino entrepreneurs during Covid-19 crisis. In this regard, he just started Hispanic Small Business Center and the associated emergency grants program.
Even in the best of days, Latinos entrepreneurs do not have a simple way to launch and develop companies in the United States. My co-founder understands better than anybody else. “As a Latino businessman who has both struggled and flourished,” says Carolyn Rodz, “I understand first-hand the barriers that our group faces when beginning a small business: fewer money, small networks, and a lack of awareness of the services available to us.”
In order to address these issues, the Center is set up in collaboration with the Global Entrepreneurship Network, the United States Hispanic Chamber of Commerce, the Latino Business Action Network, and my corporation, Hello Alice, with the aim of providing resources, data show that this is immediately necessary. Pitbull says, “This programme directly benefits Latino entrepreneurs, helping them maintain their businesses running and their workers paid.”
Amid difficult economic times, where both their exposure to finance and the financial situation of their clients are being affected negatively, Hispanic entrepreneurs continue to struggle far more than the average entrepreneur. During the 2008 financial crisis, according to a Pew Research Center report conducted in 2011, the total income of Hispanic families fell by 66% between 2005 and 2009.
The average wealth of white families decreased by 16% during the same period, while African Americans saw their wealth drop by 53%. However, since Latino owners are more dependent on their own resources than other businessmen, they are more vulnerable to a credit crisis that can lead to dropping real estate values.
Even though, the latino community is still incredibly resilient and innovative. By 2017, the Aspen Institute stated that “Latinos have continued to start up new business ventures at several times the pace of the rest of the country. This high rate of business development is unprecedented in the US — the five-year average growth rate of the total number of Latino businesses remains double or triple that of the national average over the past 15 years, as per the Latino State.
Our research from the Covid-19 Emergency Grant programme reveals that 30 percent of Hispanic entrepreneurs have said financing is their greatest need. Over 88% of the Hispanic entrepreneurs who applied said they wanted government help to survive.
If Latino businesses were to generate income in the manner non-Latino businesses generate cash, the report found that they would add $1.38 trillion to the United States economy. Sadly, after having to spend much of the last decade trying to dig out of the Great Recession, Hispanic business owners are back in recession again.
Minority Americans continue to be more vulnerable to the pandemic themselves, and minority-owned companies, since they do not have good financial links, have failed to secure viable loans and grants. Here, you can help to support them. Like Pitbull, I, too, believe we will win.