Latina's Getting the Ball Rolling in Business

After speaking to Lea Marquez-Peterson , the president of the Tucson Hispanic Chamber of Commerce as well as two economic researchers from the Eller College of Business who run the Border Economics program, I learned that Latina entrepreneurs are taking the lead in opening new businesses.

From 1997 to 2006, the number of Latina-owned firms increased by 121%, according to a study by the Center for Women's Business that analyzed census data.

According to the the CWB's Current State of Business Report:

Women of color are starting businesses at rates three to five times faster than all other businesses. However, once in business, their growth lags behind all other firms. Businesses owned by women of color are a substantial economic force. The Center for Women's Business Research's biennial update of the number, revenues and employment trends for these businesses was released at the symposium. The findings, underwritten by Wells Fargo, showed strong growth. Between 2002 and 2008, the number of such firms increased by 32 percent, their revenues by a dramatic 48 percent, and their employment by 27 percent. The Center estimates that as of 2008 there are 1.9 million firms owned by women of color, employing 1.2 million workers and bringing in $165 billion in revenues. Women of color comprise 26 percent of all women-owned firms.

According to Vera Pavlakovich-Kochi, a research economist with the Eller College of Business and Management, there are several reasons for this:

-All women, especially Latina’s are getting college degrees at the highest rate ever seen in this country, leading to increased wealth

-Many Latina’s are coming from countries which are not as friendly to female entrepreneurs as the United States, so once they are here, they see the opportunity to distinguish themselves

-Once the ball gets rolling and these women start companies, this leads to more women in the community taking the initiative

Because of the influx of women owned businesses, banks and investors are taking notice. Below is a video of business conference which was held to help Latina’s find the resources to start their own businesses.

Hispanic Business Boom

According to a study done by Hispanic Business Magazine, the number of Hispanic-owned businesses in the United States is expected to grow 41.8 percent in the next six years to 4.3 million, with total revenues surging 39 percent to more than $539 billion.

After talking to the President of the Hispanic Chamber of Commerce, Lea Marquez-Peterson, I learned that Hispanic-owned businesses were growing faster than any other group in the United States. I also learned that Latina's were outnumbering men in starting up new businesses. She said there were several reasons for the growth of Hispanic-owned businesses:

-there are more educational opportunities available, and more people (especially women) are getting the information they need to start and run a business
-the massive rise in unemployment has made it harder to find jobs so many have decided to just start their own businesses
-right now is a great time to start a business if the person is prepared, because real estate is low and there are many out-of-work employees

She also said that many established business are using this time to expand. One of Tucson’s landmarks, El Charro has revamped one of its stores to turn it into Sir Vezas, which seeks to attract a younger crowd.

Why Mexico Matters

The United States has long been influenced by the relationship of Mexico, and this is especially prevalent in the border states; California, Arizona, New Mexico and Texas. Mexico has affected the United States culturally, socially and especially economically.

These are some of the numbers found by the Eller School of Business Management Border Economy Program:

· Close to 23,000 wage and salary jobs in Arizona at eating and drinking establishments and other spending-related sectors are a direct result of Mexican spending in the Arizona

· Mexican spending also generated 7,000 jobs in Arizona between 2007-2008

· These jobs account for a total income of $837.24 million and $3.61 billion in sales

In this blog I will discuss border issues from an economic standpoint, with ideas ranging from business to personal finance and how they relate to the border. Please contact me if you have any questions, comments or ideas for me to write about: samseaster at yahoo dot com

If you are interested in other issues relating to the border, check out Border Beat: an online newspaper covering border issues or some of the blogs to the right