ROANOKE, Va. – Latinos play a key role in economic growth as their buying power jumped to more than $1.7 trillion, according to a report from the University of Georgia.
In 2020, the census pointed out a drastic national spike, with Latinos making up more than half of the population’s growth.
Their buying power is a driving force in economics Âas they reach closer to nearly $2 trillion, according to US Hispanic Market Report.
A trend Roanoke Spanish Founder and CEO Elda Stanco Downey said people shouldn’t sleep on.
“We’re seeing new businesses that are entering that market in really clear concise ways that really aim to attract buyers,” she said. “But a lot of businesses are just not jumping on this bandwagon yet. And there is a lot of money to be made on this spending power.”
Stanco Downey said one of the key reasons why the buying power is on the rise is because more Latino-owned businesses are forming.
In a span of five years, Virginia saw a 54% climb in Latino-owned businesses, according to a Stanford business report. She said if marketing teams start targeting Latino culture, it could be the best investment.
“The messaging that hits the values and beliefs of our Hispanic/Latino community that then engage you with that brand, with that product, and that is something business would get a great return in their investments if they tap into that,” she said.
According to the nonprofit Hispanic Star, Latinas create businesses six times faster than any other group in the U.S.
Kat Pascal helps elevate those entrepreneurs locally with the creation of Latinas Network. Pascal said the lack of generational wealth, credit knowledge and language barriers create setbacks.
A Stanford report showed the odds of bank loan approvals are roughly 60% lower for Latinos. That’s why Latinas Network tries to find local funding resources.
“I think it’s amazing to find women are pushing forward through obstacles and manage businesses while managing their households,” Pascal said.
Due to the pandemic, twice as many Latina-led companies shut down compared to businesses owned by Hispanic males.
“We have to overcome bias, pay differences and being the caretakers of our home,” she said. “The pandemic hit. We are the ones that were stuck at home taking care of our homes and managing our businesses. So it’s why you see those businesses close up.”
But she said forming a plan now will be crucial to future prosperity.