MBN USA

September 22, 2023

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USHCC’s Cavazos, Reyneri discuss thriving HBE community

By Tonya McMurray

Hispanic businesses are flourishing despite challenges such as a tough business climate and lack of access to capital, said officials with the United States Hispanic Chamber of Commerce (USHCC).

“Hispanic businesses are thriving all across America,” said Ramiro Cavazos, president and CEO of USHCC. “Latinos launch businesses six times faster than other non-Latino- owned businesses in the U.S. and have a higher per capita rate of business ownership compared to the general population.”

According to USHCC, Hispanic businesses generate $2.85 trillion toward the U.S. gross domestic product or GDP each year. There are nearly 500 million Hispanic-owned businesses in the U.S. that generate approximately $800 billion in annual revenue, according to the U.S. Small Business Administration.

Ramiro said Hispanic businesses are growing across a variety of sectors — including those related to infrastructure — putting the Hispanic business community in a prime position to benefit from the $1.2 trillion bipartisan infrastructure bill passed in November 2021.

“We’re expecting more public contracts from the Bipartisan Infrastructure Deal [Infrastructure Investment and Jobs Act)] to inject much needed capital into this sector, helping America’s Hispanic businesses scale even faster,” he said.

Overcoming obstacles

Like most other businesses, Hispanic businesses continue to confront the challenges of the continued recovery from the COVID-19 pandemic and its related supply-chain shortages, as well as the impact of inflation.

“The increase in costs to run and operate a business have impacted consumer prices, affecting the chances of businesses retaining customers,” said Nelson Reyneri Jr., chair of the USHCC board and a principal at Point B LLC. “Hispanic business owners rely on family and community networks for the growth and stability of their revenue and workforce. As operational costs go up, the risk of isolating their customers through inflation’s forced increase in the price of goods and transportation could be detrimental to their bottom lines.”

Like many other minority businesses, Hispanic-owned businesses often find it difficult to access the capital they need to weather difficult business climates or expand their businesses. He said that historically, financial institutions deny loans to Latinos at a higher rate than non-Latinos — despite better credit scores.

“The potential for economic growth is exponential,” Reyneri said. “Our community is eager to find opportunities to access more capital to scale their businesses. An additional $2.3 trillion in total revenue would be generated to the U.S. economy if Latino businesses were provided greater access to capital. Simply put, we are leaving money on the table.”

One of the USHCC’s goals is to bring added resources to the table to help Hispanic businesses continue to grow and overcome challenges — especially access to capital. The chamber helps Hispanic businesses access funding opportunities, public-private partnerships, technical assistance programs and federal multiagency initiatives.

“Ultimately, the uncertainty facing Hispanic-owned businesses is exactly what we want to shift,” Cavazos said. “We are the bridge between Hispanic businesses and the available resources from the private and public sectors. Through these public and private funding opportunities, we’re promoting more pro-business, bipartisan solutions that support Hispanic entrepreneurs’ economic growth and development.”

Reyneri said the USHCC remains focused on access to capital, capacity-building and connections through contracts. A March 2023 Legislative Summit and an April 2023 Energy Summit were key to increasing connections and helping Latino entrepreneurs gain the contacts and resources they need to continue to grow.

Creating economic opportunity

The 2023 USHCC National Conference — taking place Sept. 24-26 — will bring together corporate, nonprofit and government partners to discuss opportunities for economic development for Latinos within the larger U.S. economy. USHCC is anticipating more than 5,000 attendees at the conference, which will be held at the Loews Sapphire Falls Resort in Orlando.

“Orlando is becoming one of the country’s major hubs for Hispanic commerce in the U.S. and Latin America, setting a great backdrop for the conference,” Reyneri said. “For the past few years, our conference has been on the West Coast, so bringing thousands of attendees to Florida — a key state and important market for our community — gives Hispanic entrepreneurs from across the country the opportunity to spend their dollars supporting Hispanic-owned businesses. Latinos buying Latino.”

The conference will offer Hispanic entrepreneurs the opportunity to engage in policy-driven discussions with business and governmental leaders, as well as find new opportunities in both the public and private sectors through the conference’s matchmaking sessions.

To learn more about USHCC, visit USHCC.com.