State of Latino Entrepreneurship 2020: The Report
Great. Afternoon I'm mark Madrid CEO, of the Latino business, Action Network el BAM. Thank. You, and. I'm. It. Is a wonderful, day isn't it talking about us Latino and Latina entrepreneurship. And on, behalf of the Oh Pam Borden team we, welcome you to the fifth annual state, of Latino entrepreneurship. Research. Forum the. Stanford Latino, entrepreneurship. Initiative, slay, which. Is a collaboration, between Stanford. Graduate School of Business and El ban is an, American, economic, imperative, and it's, official. Our nation, is taking, note, and we. Are most grateful for your taking precious time and energy and, resources to. Join us today and we, thank Stanford, Graduate School of Business and their entire ecosystem, and teams for, their outstanding and. Diligent, efforts to make this event a resounding, success. In. Addition. Elven, thanks our principal partners, Wells Fargo, and Fox corporation, lead. Investor, Bank of America, lead, sponsors, Chavez, Family Foundation, pitch Johnson, John, Arriaga, and all of our sponsors and strategic, partners for, their enduring support of El ban and our. Efforts, and funding, this powerful research, and. Now it is my honor to introduce professor, Jerry. I pour us the, lane professor, of organizational behavior, and change emeritus. GSB. And faculty. Advisor for, the Stanford Latino. Entrepreneurship. Initiative thank you. Well. I'd like to also extend my welcome to all of you for being here this. Is a significant. Event for, all of us and we hope that the information, that you get. Today both, about the research and some, reactions, from from. Entrepreneurs about. The data and also, principle. Address. By, a very very successful, Latina. Business, owner that all of that put together will, be for, make for a really good session. This afternoon. I wanted. To put a little bit of context. Around. What slay is and how. Our efforts are, varied. And this is just one of them so, that you can get a better understanding, of how this, research and this forum fits, into a broader array, of activities and, actions that we at Stanford. And Elle ban are taking, in order to try to influence, an impact, latino-owned. Businesses and. Really impact the health of the US economy. The. Latino business action Network el ban was. Created. It's a 501c3. Organization and. It was created, by, a group of Latino. MBA. Alumni, and myself. And. We, got together and, talked, about what is it that we could do to try to impact, the. Society, and the health of the economy of. This country over, a longer term and out, of that we decided to create this nonprofit. Whose. Long-term purpose. Was, to strengthen, the United States by. Improving, the lives of Latinos, and we're. Saying it that way because Latinos, are right, now a significant. Portion of the society, at, 17% and. Not. Too many years not too many decades, Latinos. Are going to be about 30 percent of the country so. In order for the country to prosper, to be to be economically. Healthy. Latinos. Are going to have to prosper, and be economically, healthy and that's, so that's kind of where we began, now. With that very, long. Term purpose, we, asked, ourselves what's, more of a short-term mission, that we can do to try to promote, this long. Term end and out, of that came the, notion that we we would want to create, an alliance or a collaboration. With. Stanford to, try to execute on a series. Of programs. That, we thought were important, to, generate, we. Have these two entities we, have the Latino business Action Network and we. Have the Graduate School of Business. These. Two entities have come together in a, collaboration, to. Create the. Stanford Latino entrepreneurship, initiative. Now. The model that we've been following is that Elbon. Generates. Ideas, about. Substantial, programs, or projects, that. Could serve, to move. The, country in the direction that I just described. So. It comes up with ideas it goes, out and it secures, resources. It occurs funding, and. It. Also provides. Staff, support. For. The execution, of these programs. That are, generating, program ideas that are generated now. El bad doesn't have the resources to, do this that are the expertise, to do the sorts of things that we're wanting, to get done so, it creates a collaboration, with Stanford and Stanford, faculty. Members, to. Execute, on some of these major ideas, so. One major idea was let's do a research. A study of Latino. And businesses across the country. How. Do we get that done Stanford.
Has The, resources, the expertise, the, faculty, members that can execute on that so. Stanford provides. Faculty, it. Provides researchers, and it, provides administrative. Support. For the, execution, of the various projects. And programs that are generated, out of El band so it's a really nice symbiotic, relationship, in which in which el van has created, resources, that, help faculty. At Stanford execute. On a variety of activities, research, and education, included, so. Out of that then the Stanford Latino, entrepreneurship. Initiative, has three major thrusts. That have been created, one. Is we call the slay research thrust and this, program and the and the study, that's driving, this program is a product, of that we. Have slay education. We have a sleigh ecosystem, and I'll just say a couple of things about each, one of those so, in the sleigh research area we do the national research study of around 5,000, let the you know own businesses. And. We write reports, on them we've created a massive database of latino-owned. Businesses. We. Do spotlight, types of researchers that focus on very specific, arenas. And, we do that often in collaboration with outside, entities, like we have one when, the study that was done with the Federal Reserve Bank of New York and so, these are these are more focused, and not as wide-ranging. As the, national. Survey, we. Track the alumni from the sleigh education, program to find out how. Are they performing after, they've entered and passed through the program, we, want to know are, they. Being successful. In the way they want to be successful and why, or why not so we're tracking that information, and finally. We created, a, group. Of, faculty. Members academics. And researchers, from, across the country that. We coalesce them into into, a group three, years ago and we got them talking about Latino, research because the research on Latina entrepreneurship, is. Really limited and, we, wanted to try to promote that on. A national level and the way that you do that is you get faculty across the country interested in doing it so, we got a group of faculty together and after two years of conversations, we, created, a book. Of readings which, is going to come out in. April and there, was a flyer at the desk in the front if you didn't see it grab it on your way out so. This is a book of readings it was generated, out of this this. Pulling. Together of faculty, and other academics, from across the, country, it's, an exciting project we expect that we will probably repeat that cycle along, with different themes in the future but, it's hopefully trying to build a, nucleus. Of people interested in doing research on, Latinos, the, second part of our effort is a slay education, program this. Is a program that's focused on helping. Companies. To scale, art. We're trying to target is companies, that want to be really, big, because we think that really big companies, are the ones that can really influence the society, the, economy, of the society, the social structure. And so on so, a lot of change can happen if there, are a significant. Number of very large Latino, and businesses and so, we're talking about billion-dollar, businesses, and plus and that's, what we're trying to promote and motivate through this scaling program, is the. Creation and the growth of companies so, that they'll reach those levels, and begin to influence the. Economy and the country as a whole this. Will bring more, wealth into the Latino communities, provide, more jobs for more people some of them will be Latinos, and. In a really, strong positive way, contribute. To the health of the economy of this country so. This program is. An online program it's. A hybrid program two days at Stanford, six. Weeks online and then a day back at Stanford, we.
Run Two cohorts a year approximately. 75, to 80 per cohort I, think, we have a substantial. Number of. People. Who have completed, that program maybe, you can just raise your hands, to let everybody know that you, are you were part of it. So. This, is an example of us having an idea of wanting to create a scaling program and then finding a faculty, member professor huggy, Rao in, the business school who. Had created an, online program he and his colleague Bob Sutton had created an online program that focused on scaling, so, we took that program and we Latino, Eyes dit we, add things to it they've made it very specific, and special, for Latinos, so, we added role model videos of successful, Latinos who had scaled, their companies, and could provide good examples we. Added webinars, that, focus on getting, money the types of many of us out there getting it how to how to go about getting it we, created mentors so that each meant each participant, has a mentor if they meet with one. Hour a week during, that during the program and many of those relationships, have continued, on well after the program we've. Created a network of capital providers, that come in at the end of the program and interact with the participants, because, getting capital is a really significant, part of growth we all understand, that and, then we've created a participant, network are the people that are going through the program are all networked together and they interact on an, ongoing basis. Where, they're sharing problems, or sharing resources one, of the things we try to promote in this program is doing, business with each other and getting. Business for each other and the, use of that network has been very potent, helping to contribute, to that, so. The third part then, is is our slay ecosystem. Activity. And this we're trying to really build an ecosystem, around Latino, entrepreneurs that, will help them be more successful and. This. System in large, part is drawn from the ecosystem we've developed in the scaling program so, we have mentors that are part of that we, have capital providers we, have a lump. I base for all of the participants of the program of which, we now have like around 580. Participants. Who have completed the program and we're trying to get them networked and have them network with each other because, it's amazing how much support and how much energy and how much Drive can be generated through, that network we. Also are bringing. Together groups, of organizations, across the country who. Have interest. In Latino entrepreneurs and, Latino businesses. Organizations. Like the Hispanic, Chamber of Commerce, various. Minority, supplier organization. Latino. Professional, groups and so on the, idea is to really begin to build, more and more of a supportive, network for, Latino, entrepreneurs to, be successful, so. That's what slay is all about it's. It's a collaboration, Elvin, and Stanford. And it, does three main things, teaching. Research. And ecosystem. Development, so. With that I'll. Close and introduce. Inara, Tariq who is one of our researchers, who, will then give, you an overview of what it is with the research activity. That we're gonna be doing thank you. Thank. You so much Jerry and it's a pleasure for me to offer an additional welcome, to all of you here it's really, exciting to see such a large crowd it, is now time for us to reveal our latest, research the. 2019. State of Latino entrepreneurship, report, generated. From our fifth annual survey, of nearly 5,000. U.s. Latino entrepreneurs. This. Research, presentation. Will be split into two parts you, will first hear from Professor. Paul or professor. Of economics, and senior. Associate dean at Stanford, Graduate, School of Business and he.
Is Also faculty advisor of the Stanford Latino, entrepreneurship, initiative, among. Other topics, Paul will share key demographic. Trends that we observe among us, entrepreneurs, and also, highlight, important. Characteristics. Of latino-owned. Businesses that, we have identified, you. Will also hear from Marlene, Orosco, leads, a research analyst, who will discuss, our other, key findings, to. Name a few, those would be Latino, business financing. Liquidity. Challenges, procurement. Contracts, and personal. Financial well-being of Latina entrepreneurs so. Ladies, and Ehrman it is now my honor to introduce to the stage professor, Paul Boyer. Welcome. Everyone I'm Paul lawyer the faculty, director, along. With Jerry of course of slay and, I. Got involved in this a few years ago I was when I was one of the faculty directors, of the, GSB Center, for entrepreneurial, studies and. Over. The last few years I've had the, good pleasure of working with Jerry of course but also with. Marlene, and Inara who have pushed our research, agenda forward, and are extremely devoted to the research goals of slay I also. Want to note in passing because Jerry asked how many of you are slay at alum I just want to note in passing that, I've also, had the good fortune, to. Spend. Some time with each of the slate groups as they come through and it is, always one of the. Highlights of my teaching. Year they're an incredible, group of people and and we look forward to many more cohorts. Coming through Marlene's. Much closer the details of this than. I am and she's gonna she's, really she, and Anne are have devoted so much energy to this that I'm gonna let her go, through the report but. Let me just bring up a few higher level themes here, so. This. Is figure one from our report, that we're releasing today and. So. First of all as a labor, economist, who studies entrepreneurship. I'm. Interested. In in the fact that it's pretty well known now that entrepreneurship, or we're, using a. More. Narrow definition here. Which is self-employed people but, entrepreneurship. In general is actually. Down in the United States over the last period, of time for various reasons you wouldn't you, would not be under that impression if, like me you work, your day job was at the Stanford Graduate School of Business where all you ever hear about is entrepreneurship.
Entrepreneurship. Entrepreneurship. But. In general, in the greater economy. Entrepreneurship. Levels have actually come down, and. Latinos. Are bucking the trend so, among. The, Latino population the. Rate of entrepreneurship, is actually up now, I could, be. Worried, if I looked at this about, two things one. Of them is you might say well maybe, a Latino, entrepreneurship, is up because Latino. Opportunities. In the labor market. As good as some other groups and, at, first I sort of worried about that but as, in. Our report, we have a graph we, have some results that suggest that moat you know the Entrepreneurship rate among among. Latinos. Is just as much oriented towards seeking opportunity. Rather than not. Having something else they, can fall back on so, that's somewhat, reassuring, but, the other thing I would note and this is not just the Latino group but again don't. Let the fact that you're at the Stanford, Business School color, what you think of here most of these businesses for. Latinos, especially but. For all groups are not, Silicon. Valley you know things that are going to become unicorns. There are mostly small groups. Often companies. Often with no employees, and. That's. What you should be thinking of and that's. Fine but, what we want to what's lay is what's, lay is focused, on isn't, making, every, Latino, entrepreneur. A huge, success, it's, making, the share of those entrepreneurs. Within Latino. Community, that really want to grow make, that more representative. Of the overall entrepreneurship. Out there okay, so that's that's how we think about it there. And you're gonna see some examples, of that during the panel and throughout. The day so there. Are some certainly, some optimistic, signs. On the horizon, just. This graph further just takes you through a different takes you to another data set that basically. Says the same thing in a different way and that is Moore and, Latinos. Are moving into. Entrepreneurship. At a faster, clip than any other demographic, group we, analyzed and so. Entrepreneurial. Entry is very high in this, particular, group this. Is another figure from our report which shows that while. Scale. Is not that high among, these businesses, growth, is the. Norm among, Latino. Oriented, businesses, especially, in certain subsets, so. Those. Firms that, have sort of already grown to the have, some scale and an employ and employees. Those are growing even faster but, just in general most firms are growing their business and that's, good to see although, you, know they're not reaching, scale. As, quickly, as we'd like and that's the last graph I'll highlight this. Comes not from not. From this current research report, but a supplementary. One we put out last year, on. The. Entrepreneurship, gap between Latinos and, other groups and this, is I love this I love this funnel, we. Created. Because. It. Gets at the challenge, of scaling. For, Latinos, on the left-hand side relative to other entrepreneurs. On the other side so relative, to other populations. Latino. Entrepreneurs are less likely to break through from self-employment to, a to. An, enterprise, with employees, and they're also less likely then, to move from, that level, to a scaled, business, of a million dollars or something like that and higher so.
As We focus on in this report, and some some, and. Some of our prior reports a lot of that distinction, is driven by access. To capital okay, and the. Iron. We've. Already there's. A very nice Bloomberg, article that already came out today studying, our new report in which, they and the headline I, think. Is fantastic we, should have thought, of this and put it in our report ourselves, the headline is Latinos, are building. Businesses, but they don't get much credit and so. That's. Kind of a theme we come back to within our report, and that. You'll hear more, about from Marlene, and and I'd, be curious to hear what the panelists, have to say as well so, slayin and Schley research, that's. Our goal as Jerry said is to. Try to change, that and we're. Hopeful were making some, contributions. Along the lines I'm certainly, looking forward to what our panel has to say about this and other, challenges, faced by the population, were we're, describing here but. Before. We get to the panel let me introduce marina, Orozco who, will dig a bit. More into, detail about our report. When. I started, it. Excellent. It, is a real honor and pleasure to be here with you all today to share key findings, from our 2019. Slay survey, of US Latino business owners and. For. The past five years we, have collected survey data from, latino-owned. Businesses across. The, country to provide an updated account of the, latest trends on Latino entrepreneurship. In the United States. While. There are other several, business. Surveys, namely. Those from the Census we build off of these insights, and dig deeper into the Latino entrepreneurial, profile, and growth, experiences. We. Know that this is an increasingly, important, segment of the business population. Given. The constant, upward trend which Paul just showed you all a new. Business formation, over the, past 10, years the. Number of Latino business, owners grew 34, percent, this. Is compared to 1%, for all business, owners, what's. More even, with unemployment, rates at a 50-year. Low of. 3.7. Percent it's. Four point two percent for Latinos, business. Ownership continues, to be an important part of the, labor market experience, for Latinos and, as. You may know I see several faces, in this audience today we've. Been at this for a while now and a, constant, theme in our research is that we know that the funding experiences.
Of Latinos, forms, an important part of their growth. Businesses. That have external, sources of funding are more, likely to be scaled or generate at least a million dollars in annual revenue, or more and in. The state of Latin Entrepreneurship, report that we are releasing today we, share insights into a funding framework that identifies, the sources, of capital that yield the greatest success we've. Also created an index to measure an entrepreneurs, personal, financial, well-being and. Lastly. We, build off of the growth framework, that we discussed. Last year to share the characteristics, and strategies, prevalent, among Latino, owned firms that, have successfully. Grown their revenue or their number of employees, and the. Larry's of success outlined, in our reports, may, be interesting, for Latino firms seeking, to grow and those, of you in the audience who wish to support this growth and. Then. What follows I'll be presenting key findings, based on the analysis, of the 2019. Slay, survey of US, Latino business owners so we'll start by reviewing a few key findings, and I'm glad I can navigate this it looks like my appletv. Control. So. First we, have historically, collected detailed. Data on the types of funding, Latino, business owners access, this. Year we add a new dimension to our analysis, for. Each type of financing spot we analyzed, the relationship between, the amount of funding requested. And the, success, rate in acquiring, it and we, find that business, size matters. And it, makes a significant, difference in the type of funding that is sought or successfully. Secured, by Latino owned companies it is in fact the costlier, and riskier, capital, that is ultimately, sought and obtained, among unskilled, Latino firms are those, that are making less than a million dollars in annual revenue. Related. To business finances. We. Also find, that Latino owned skilled firms and firms, with sustained, revenue, growth tend, to have higher liquidity but. Having. Employees on payroll correlates. With liquidity challenges. Last. Year we should have shared, a growth frame framework, with procurement contracts, making, the top of the list, this. Year we, dig deeper into contract. Opportunities. And find that government, is out sizing, corporations, on average, contracts, among Latinos, by a factor, of 2 to 1. Next. We consider the importance of place-based, policies. And find. That while Opportunity, Zones incentivize. The economic, development of low to moderate income communities many. Latino entrepreneurs are simply unaware of this policy and if. We consider where opportunity, zones have been designated we. Find that latino-owned, businesses located. In these zones actually. Have higher revenue growth. Lastly. We, advanced a personal, financial, well-being index, based, on average, income, home, ownership and health insurance coverage we. Find that Latino business owners experienced. Lower personal, financial well-being than, other US entrepreneurs. However. Latino. Entrepreneurs are, catching, up their. Financial, well-being has grown faster, than that of other entrepreneurs over, the past nine, years and. Compared. To Latino wage workers, Latino, entrepreneurs earn, more, and are, more likely to be homeowners but. We do find that they lag significantly behind. In health insurance coverage so I'll. Detail all of these key findings one by one in what follows and we'll start with a detailed, look at capital through a funding framework. Our. National, survey of over 5,000, latino-owned, businesses has, historically, considered, a number of capital sources including. Institutions, such as banks and government, loans and other, types of debt like credit cards and a variety of equity, sources VC, angel.
Private Equity for. Each type of capital, that. Was sought in a 12-month, period we, consider the amount of financing, requested. And we've. Simplified it here into two groups a low. Amount which is less than $100,000, and a high amount over a hundred thousand among. Those who applied for financing. Of any type we, add another level of categorization, the. Amount approved, having. None or some of the funding approved, is what, we deemed the low category and having. Most or all of that funding approved is the high category. We. Then took these categories. And created, a 2x2 table, we wouldn't be at a business school if we didn't create one and. So we advance this funding framework and this, funding framework applies, to all of the financing, types in our survey so. If we start with the lower right hand quadrant quadrant, number, four it. Combines the high amount of financing, requested. With, the high amount approved, and we, name this group as having, their large needs, met if, we, consider a low amount requested, less than a hundred thousand and having most or all of that request filled we, call this group the small needs met and you, can see that the other two groups have their needs unmet, that is they applied for a high or low amount and received, none or only some of their funding requested, for, our analysis, we, focus on those that have their funding needs met. This. First scatterplot considers. The large financing. Amounts requested. For each type of capital, among. Both scaled, and unskilled, firms the. X-axis. Indicates, the total percent of firms that applied for that particular, funding. And the y-axis, shows the, percent what percent of firms that applied, had, their funding needs met, I should. Note here that the average Latino. Business owner has requested, financing, from, two sources and over, 40 percent applied. For some type of external funding source in the last year, so. For skilled firms on this scatterplot which are the blue dots we, see that local, banks have the greatest percent, of firms getting, their funding needs met for. Unskilled, firms factoring. Yields, the greatest percent of firms having their funding needs met but only a small percent, apply for this type at. A basic level when, factoring, a business, sells its accounts, receivables, at a discount so. This type of financing, while convenient. Comes, at a relatively, high cost and, on. The whole we tend to see that unskilled, firms are resorting, to financing, that comes at a greater personal, cost to, the owner and the business such, as relying on personal, credit cards or factoring. This. Next scatterplot considers, financing, of any size and here we similarly, see that not surprisingly, scale. Over the company correlates, with funding success, most. Of the blue dots again those are the skilled are at, 50% or higher for, the percent of firms that have their funding needs met but it by that type of source what. Is surprising however is that we when we consider all types, of funding sought and successfully. Received neither. Having revenue, growth in the past year nor profitability. Shows. Strong correlations. With whether or not a business was successful in, securing, financing. Ultimately. Its business, size or, scale, that matters and funders. May be considering, other characteristics. Beyond, revenue growth or profit profitability, which, are really signals, of potential, and small business track record when they're lending or investing, certainly. Future studies should consider the perspective. And the practices, from the capital provider side to provide more insight. We. Now turn to another key finding related, to business finances, our survey. Asks, a battery of questions related, to liquidity or the, availability, of liquid, assets such as cash equipment. Inventory and other assets. Here. You can see the distribution of, latino-owned. Businesses by. Months that the business could operate with available, cash well. The majority of businesses, can operate for, four months or less we. Note that over one-quarter, of latino-owned, businesses can. Operate over a year so, not all are strapped for cash however. Having, cash on hand is not the only measure of liquidity as, a. Firm mentioned we asked about liquidity in a variety of ways including.
Having Cash on hand the impact of the length of terms of payment and having, to cover business expenses, through personal credit cards we. Create a composite measure of liquidity with anything, above or below the average representing. Overall high or low, liquidity respectively. Not. Surprisingly. We find that skilled firms and those with sustained, revenue, growth have, high liquidity, but. Latino-owned. Employer firms struggle. With liquidity compared, to non employer firms in one, of our previous reports, we identified, that the main hurdle of latino-owned. Businesses is. Crossing. The employment, threshold, that's, going from a solopreneur or, having know, an. Entrepreneur without employees, to, becoming an employer business a business with paid employees, this. Means that for employer firms the availability, of cash and other, financing, issues, poses, challenges for. Continual, growth. We. Move now to strategies, and opportunities that are positively, correlated to scale last. Year we presented a growth framework, and highlighted. A number of these characteristics, such as being a registered business. Exporting. And being certified among, others this, year we dig deeper into some of these like certifications. And explore new ones for. Procurement, contracts. 5%. Of latino-owned firms have a contract, with a corporation, and 4%. Have a contract, with the government when. Asked, about factors, limiting their growth 9%. Of all survey, respondents, report difficulty, in participating, in requests for proposals RFPs. To. Compete for procurement contracts, and 10%. Report, a lack of awareness about, supplier, diversity programs. And, as. Shown in this table the average contract, amount varies by type, of contract, and region, the. Average contract, amount for government, is twice that of corporations. About, five hundred and twenty five thousand, and two hundred and sixty two thousand respectively, among. Those who contract with corporations, on average, men Latino men can't have, contracts, that are twice the size of those contracted. By Latinas, and more, u.s. native-born Latinos, than immigrant, Latinos contract, with the government and have, higher average contract. Amounts so. While there's some gaps between Latino, subgroups, on the whole contracting. Is a viable growth, strategy, and again we show that this is correlated, with growth in our framework from last year. Even. As shown in the differences, in contract, amounts across regions, we know that placed place, matters when. Considering a new place based policy, known as Opportunity. Zones we. Find that these policies may provide benefits, to Latino business owners but the majority are unaware, or unsure, of what they are, first. In this map here we see the distribution, of over, 9,000. Opportunity, zones across the states the, tax cut and, job acts of 2017. Created opportunities, owns as a way to incentivize economic. Development, and job creation and low-income communities, the. Opportunity zone, incentive, encourages, business investments, through, reduce up through deferred and reduce capital gains taxes, with all capital gains taxes, waived if the investment is held for ten years, the. Zones are designated, in states across 25%. Of their low income census, tracts and there's, a strong correlation between states, with large numbers our latino-owned, businesses and, Opportunity, Zones California. Has the highest number of opportunities owns, followed, by Puerto Rico Texas. New York and Florida and Rebecca. Lester and team here at the GSB have a really great interactive map online on opportunity. Zones which I encourage you all to check out. Overall. We, find a general lack of knowledge about opportunity. Zones within the Latino business community, we, find that for percent of Latino owned businesses are located, and informally designated, opportunity, zones as linked, by their zip codes but, among these only 28%, know, that they are located in an opportunity, zone.
47%, Do not know and 25%, incorrectly. Believe that they are not in an opportunity, zone latino-owned. Businesses in, opportunity, zones have a higher average annual, revenue growth rate compared, to those not in opportunity, zones 24, percent and 13, percent respectively, I do, want to make it clear that we are not implying, that Latino business revenue, growth is a direct, result of being located in an opportunity, zone but, we do find that areas designated as, opportunity, zones are not currently, experiencing. Stagnant, business growth even, though they are low, to moderate income communities. So. I want to move now to our last key finding, we, highlight an understudy, part of entrepreneurship, as a pathway of social mobility we. Compare. Income home ownership rates and health, insurance coverage among, entrepreneurs and, wage workers, across, four major racial and ethnic groups. We. Find that Latino entrepreneurs earn, 10% more, and sick on our six percent more likely to be homeowners compared. To Latino wage workers but, they lag significantly in, health insurance coverage and this. Figure here, looks. At these three components across, time between 2008. And 2017. Income. Differentials make, up that top set of bar graphs for. Latino entrepreneurs compared. To white entrepreneurs, income. Remained, constant, as did differentials, and percentages, of home ownership in the, area of health insurance the gap in percentages. Between the two groups was narrowed considerably because. Of much larger numbers of Latino, entrepreneurs gaining, coverage in 2017. As compared. To 10 years earlier. Where. We see some important, gaps is when we compare entrepreneurs, to wage workers, we. Created an index which includes these three components again income, home ownership and health insurance and find, that overall Latino. Wage workers are more personally, financial. Well, off than Latino entrepreneurs but. This mostly has to do with Latino entrepreneurs lagging. And health insurance coverage, sixty-three, percent of Latino entrepreneurs have, health insurance, Everage compared. To 78%, for, Latino wage workers this. Is the largest gap among all groups and it, also represents, the lowest rates of health insurance coverage compared to all demographic. Groups and as. Shown in our report Latino entrepreneurs outperform.
Latino, Wage workers and income, and home ownership rates. So. With that there's, still much work ahead in ensuring, a level playing field for Latinos, this. Year the slave survey of u.s. Latino business owners provides. A financing, framework, to better understand, effective, capital, sources in the funding experience, of Latinos, we. Also highlighted, growth strategies, and opportunities for, Latino business owners as it. Relates to social mobility and leveraging, entrepreneurship. For, wealth creation in the Latino community we, uncover some important, areas for policy, makers and other stakeholders to, consider, as a. Final, note given. That we're one, month into 2020, I want to encourage you all to be counted, not, only on the census but, when, you're taking surveys like ours that, help inform our understanding of the business owner ecosystem, and lastly. As always I encourage you all to read our 2019, state of Latino entrepreneurship, report to, learn more about these findings and many many. Others that we could not, cover. Today thank. You. You. You.