How to start a small-business in the hispanic community

Over 4.7 million Hispanic-owned businesses across the U.S. contribute more than 800 billion dollars to the economy each year. According to research managed by the Stanford Graduate School of Business, the amount of Latinx entrepreneurs is increasing three times more quickly than other categories. However, a lack of knowledge about how the U.S. financial system, lack of connections, and the fear of taking on debt are all taking an even more significant impact on Latinx entrepreneurs than of other ethnic groups, according to Marcelo Rodriguez, the founder of InQmatic which offers financial assistance and loans to over 3000 businesses that are Spanish-speaking. Rodriguez has been studying the Hispanic market in-depth for more than 15 decades and met with InQmatic to discuss the issue.

Which are the top frequently-made errors made by Hispanics who are trying to establish businesses? They revolve around banking tax, credit, and others. The biggest obstacle to overcome is the anxiety of having to pay for a debt. We are convinced that getting a loan should indicate that we’re not doing well and suggests the need for assistance. We only think about debt when we’re struggling, not at the beginning of the course. Also, we are afraid of putting money into the banks. Many Latinx immigrants think that the government will go after us with our money because we’re not from the country.

What are the pitfalls that founders should beware of?

The loan sharks. They’re quick and do not require financial documents. Also, don’t take advice from people who aren’t experts. Sometimes, it’s more challenging to remove incorrect information than to understand what we need to know and the best way to run our business.

What is the best method to establish an online network?

Find the events your company organizes, and make sure you attend all professional gatherings with the word Hispanic or Latinx in the invitations. Many initiatives from the local government, consulates, and significant companies want to connect with Latinx. The best approach to getting involved is listening to business leaders who started with nothing but managed to expand. They’re all armed with valuable advice that can help you know the process.

Can non-documented Latinx manage successful businesses?

It’s more complicated. However, it is also very possible. I was not legally documented when I began working in the U.S. The advice I received was to establish an organization under my name so that my employers could pay me directly through it. I set up the company as a limited liability entity, and as a result, I did not apply for jobs and began asking for the business. I eventually managed to build my income source and also manage my tax burden.

Other things do Latinx business owners require?

Legal and accounting professionals. Many companies don’t even realize they require an attorney. Have seen a lot of cases where business owners have to pay an excessive amount for electricity, for example, when they didn’t understand the contract they signed. Their landlord informed them that they’re liable for the entire bill for their building. One thing that is unique and unlucky in the community we live in is that we’re not trustworthy, so we don’t trust professional advice until we’re in grave health.

What tips would you offer for those who aren’t sure about leaping?

This is the ideal moment to begin. Start by working from home and even your cell phone. The entry barriers to this part of the U.S. are so low that you could be operating your business in just a week. Business advisors can offer tools to assist you in going from a bare start to sales in just one month, with all the required paperwork.

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Samatha Vale
Samatha a senior writer for HC's entertainment team. She is an entreprenuer, mother and an excellent writer. She's also an avid reader, music enthusiast and all around inquisitive person - which is just a nice way of saying she's nosy.

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