Community-Focused Business Models Lead To Success for Young Hispanic Business Owners
|According to a recent survey conducted by TD Bank, the Hispanic population in the U.S. isn’t just showing the potential to become an influential group in the tech industry — many Hispanics have already earned top spots in the business and technology sectors, and now, younger entrepreneurs are starting to take the reins.
Not only are Hispanic business owners likely to have started their companies from scratch, as the Latin Post states, but they also tend to be more capable when it comes to handling finances.
The survey found that 83% of Hispanic small business owners started their own businesses, while only 6% inherited their businesses from a family member, and 90% of business owners took the plunge without having any experience running a business before. Around 81% handle their own business finances, and 68% are confident in their ability to do so.
The survey also found that Hispanic entrepreneurs are likely to pursue their business goals earlier than other Americans: whereas the average American worker is likely to start an entrepreneurial career around age 39, Hispanic entrepreneurs begin around age 35.
Take, for example, the online language school startup Open English, which is now worth $350 million. The company’s CEO, Andreas Moreno, found success in just a few short years by creating a friendly and simple English-learning platform. In previous years, Open English was marketed toward Spanish speakers in Latin America; recently, the company decided to start marketing its services in the U.S. — and has gained a lot of success from doing so — because of the high percentage of immigrants who don’t speak English well (or at all).
As a young professional trying to navigate the corporate worlds of Venezuela and the U.S. at the same time, Moreno recognized that there was a need for a service like Open English.
Or look at Sean and Kenny Salas, two brothers and students at the Harvard Business School, who founded the company Camino Financial to help small business owners find opportunities to get funding. The company primarily targets the Hispanic community and it gives more weight to the success of an entrepreneur’s product rather than the credit score of the individual.
It’s the innovative thinking and attention to the needs of other Hispanic businesses that has allowed these young entrepreneurs — and countless others — to find success in the American corporate world. While the majority of American businesses invest in things like marketing, sales, and new technology, young Hispanic business owners are investing in their communities.