Latino small businesses in northwest Washington: Perceptions, challenges, and needs

Abstract

Despite the increase of Latino small businesses, they fail at a higher rate than their mainstream counterparts. Further, researchers and practitioners show insufficient understanding of Latino small businesses, over-relying on ethnic and nationality entrepreneurship that underestimate gender, education, and socioeconomic status. A responding framework maintains that structural forces push Latino immigrants into entrepreneurship because no other income opportunities are available to them. Considering both frameworks, we surveyed 82 Latino-owned businesses and conducted three focus groups in Washington State. We learnt that most (1) want a financially stable business, (2) are interested in talking with a business advisor, (3) lack a business plan, (4) use English and Spanish for business, (5) need help with paperwork for a loan, and (6) need computer training. We found too that business satisfaction derives from the emotional rewards and sense of accomplishment business owners felt in doing good work, helping others, and having financial success.

Keywords:

• Immigrant small business owners
• Latino/Hispanic entrepreneurs
• small business

Acknowledgments

We also want to acknowledge the Latino small business owners who contributed their time and knowledge to this research. Without their participation, this could not have happened. We also extend our appreciation to the three local organizations that were instrumental in partially recruiting research participants: The Economic Development Association of Skagit County, Las Americas Business Center in Snohomish County, and Community to Community in Whatcom County.