The purchasing power of Latinos is growing rapidly and is fueling the economy
ROANOKE, Virginia – Latinos play a key role in economic growth as their purchasing power has soared to more than $ 1.7 trillion, according to a report from the University of Georgia.
In 2020, the census pointed to a drastic national peak, with Latinos accounting for more than half of the population growth.
Their purchasing power is a driving force in the economy as they approach nearly $ 2 trillion, according to the US Hispanic Market Report.
A Trend Spain’s Roanoke founder and CEO Elda Stanco Downey said people shouldn’t be sleeping on it.
âWe are seeing new companies entering this market in a very clear and concise manner that is really aimed at attracting buyers,â she said. âBut a lot of companies are not yet jumping on this bandwagon. And there is a lot of money to be made with this purchasing power.
Stanco Downey said that one of the main reasons purchasing power is on the rise is that more and more Latino-owned businesses are forming.
In the space of five years, Virginia has seen a 54% increase in the number of Latino-owned businesses, according to a Stanford business report. She said if marketing teams start targeting Latino culture, it might be the best investment.
âThe message that touches the values ââand beliefs of our Hispanic / Latino community that then engages you with this brand, with this product, and it’s something that companies would get a great return on their investments if they took itâ, she declared.
Latinas are building businesses six times faster than any other group in the United States, according to the nonprofit Hispanic Star
Kat Pascal is helping raise these entrepreneurs locally with the creation of Latinas Network. Pascal said the lack of generational wealth, credit literacy and language barriers create setbacks.
A Stanford report showed that the odds of bank loan approval are about 60% lower for Latinos. This is why Latinas Network tries to find local funding resources.
âI think it’s amazing to see women breaking through barriers and running businesses while running their household,â said Pascal.
As a result of the pandemic, twice as many businesses run by Latinos have closed their doors than businesses owned by Hispanic men.
âWe have to overcome prejudices, pay differentials and be the stewards of our home,â she said. âThe pandemic has struck. We are the ones who were stuck at home taking care of our homes and running our businesses. That’s why you see these businesses shutting down.
But she said forming a plan now will be crucial for future prosperity.
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