4 States Thriving for Latino-owned Small Businesses
Recent years have seen a boom in Latino-owned businesses, but the key to success for new entrepreneurs is location. 60 percent of all Latino-owned businesses are in just four states, and part of the reason is those states providing incentive programs that make small business finances easier to handle, especially for Latino entrepreneurs. Those four states are Texas, California, Florida, and New York. Let’s take a look at what each has done to stimulate growth in this area.
Local organizations like the Austin Hispanic Chamber of Commerce provide guidance and political organizing to businesses in their area of operation, providing networking opportunities to connect Latino business owners to the people who can make them successful. On top of that, Texas has a very business-friendly environment in general, with residents paying no personal income tax. Businesses in Texas can also access loans with lower tax overhead than other states typically offer.
The State of Latino Entrepreneurship report shows that despite its traditionally high tax rates, California is a booming place for small businesses, including Latino-owned businesses. Los Angeles is currently the nation’s number one city for startups, and it’s also home to 2.1 percent of the nation’s Latino-owned companies. The city’s strong economic base and strong networking opportunities both help launch companies that go on to national success. Small business finances are easier to handle when there is a larger customer base and more access to opportunity.
Like Texas, Florida has several tax provisions that favor businesses. On top of the tax advantages, including no personal income tax, the state also offers grants for startups that qualify. You’ll need to be starting the right kind of business in the right area, but if you do your research, you can easily get a boost to your funding that will help you succeed. That’s one of the reasons the state boasts the country’s second largest concentration of startups.
New York has six percent of the country’s total Latino-owned businesses, and in New York City, 99 percent of the companies are considered small businesses. That should make it no surprise that there’s a strong concentration of networking opportunities and investment incentives available to Latino business owners. Getting the small business finances you need in order to get your new company running means having a lending partner who can give you the tools you need. For that, you’ll need to know what credit tools you want to use so you can shop for a lending provider who can meet your needs.