Brian Formisano
All women-owned businesses were still hurting after the 2008 financial crisis, with average revenues down 6.3% in 2012. But, the pain was far greater for Hispanic women/Latina-owned businesses, down 24.2%. The pandemic was different. Hispanic women-owned businesses came out stronger after the economic shock of the COVID-19 pandemic, with average revenues for these businesses increasing 17.1% between 2019 and 2023 compared to all women-owned businesses' 12.1% rise.
Whether Latinas were starting, stabilizing, or growing businesses, they benefited from government stimulus money, corporate and nonprofit support, and increased focus on closing economic disparities. As we celebrate Hispanic Heritage Month, it is as important as ever to acknowledge this momentum, while also recognizing the fact that gaps still remain. So how can we continue helping this important group of entrepreneurs to keep thriving?
Creating an ecosystem of support
Latinas represent 18.5% of all women in the U.S. and 14.3% of all women-owned businesses. However, their businesses tend to be smaller and are less likely to be employer firms. One reason for the smaller size may be the lack of access to capital. Making more credit options available to Hispanic women-owned businesses could contribute significantly more to the economy. Capital is the fuel to start and grow businesses. Programs that offer targeted grants and low-interest loans in combination with technical assistance, training, and mentorship can close the gap for Hispanic women-owned businesses, increasing both the likelihood that they will become employer firms and that average revenue will increase.
Supporting these programs is at the heart of the creation of Wells Fargo’s Open for Business Fund, an industry-leading effort that has donated roughly $420 million to support nonprofits who serve small businesses; the Small Business Resource Navigator, an online portal helping connect small business owners to potential financing options and technical assistance through CDFIs; the Capital Pathways Workbook, a free resource that helps entrepreneurs map their capital needs to business goals and objectives; and a $70 million fund in partnership with Hello Alice to improve access to credit and capital for underserved entrepreneurs.
Getting women-and minority-owned certification
Getting certified can help Hispanic women-owned businesses discover new opportunities, connect with partners, and generate business. Many local, state, federal government agencies, and corporations have supplier diversity programs. These organizations may do outreach alerting entrepreneurs when requests for proposals (RFPs) are available, and often provide matchmaking services, mentorship, training, and networking opportunities, which help increase the visibility of women- and minority-owned businesses. While there are many benefits to becoming certified, the process can be rigorous. Here are a few tips to help simplify the process.
The power in education and mentorship
Lastly, access to financial education, networks and mentorship is key. Research indicates that Latinas lack the networks or social capital that can connect them to expertise and resources.
The good news is there are many free resources and tools to help women business owners learn more about how to write a business plan, tips for building your network, how to scale your business competitively, and so much more. The U.S. Small Business Administration and the U.S. Hispanic Chamber of Commerce are two other organizations that offer free programs, coaching, networking and more. Additionally, connecting with mentors is a powerful way for women business owners to share best practices and learn from each other, but it’s often hard to know where to find them or initiate those relationships. A new program between Wells Fargo and the Nasdaq Entrepreneurial Center called Connect to More is giving women entrepreneurs complimentary support through its signature Milestone Circles program where women get bi-weekly opportunities to work through specific challenges, celebrate milestones, attend workshops, and connect with small business experts and mentors.
The path forward
As Hispanic women continue taking the lead in business ownership, we all must continue taking steps to maintain and support their momentum. Whether it is improving access to capital, technical assistance, helping them get their businesses certified, or connecting them to financial education and mentorship, Latinas will continue benefiting from ongoing support to keep their doors open.
Brian Formisano is the Wells Fargo Nevada Region executive.
