Helping Latinx Entrepreneurs Overcome Barriers to Success

There are more than 4.7 million Hispanic-owned businesses in the U.S., contributing more than $800 billion to the economy every year. And the number of Latinx entrepreneurs is growing three times faster than any other group, according to researchers at the Stanford Graduate School of Business. But a lack of understanding of the U.S. financial system, a shortage of connections, and an anxiety to take on debt all take a greater toll on Latinx entrepreneurs than on people from other ethnic groups, says Marcelo Rodriguez, founder of InQmatic, a company that provides loans and financial advice to more than 3,000 Spanish-speaking businesses. Rodriguez, who has researched the Hispanic market for more 15 years, sat down to talk about the problem.

What are the most common mistakes of Hispanics trying to build a business?
They revolve around banking, credit, and taxes. The most difficult to overcome is the fear of debt. We think that asking for a loan must mean we are not doing well and shows we need help. We only think of debt when we’re in trouble, not at the start of the process. We also fear putting money in the bank. Many Latinx immigrants think that because we are not originally from here, the government will come after our money.