Hispanic EntrepreneurshipLas Vegas, NV

Michael Barrera National Manager Economic Prosperity

The LIBRE Institutewww.thelibreinstitute.org

The LIBRE Institute is a non-profit, non-partisan C3 organization. It is committed to strengthening America and building prosperous Hispanic communities through Our Four Pillars: Economic Prosperity, Education, Faith, and Family

Surveys indicate that Hispanics want more information on personal finances and entrepreneurship. Economic Prosperity Pillar seeks to increase the level of independence within the U.S. Hispanic community by further educating the community on Financial Wellness and

Entrepreneurship. Independence and self-sufficiency create Freedom and Freedom Drives Progress

The LIBRE Institute

What is the Institute?

There are an estimated 54 million Hispanics currently residing in the US

66,000 Hispanics turn 18 every month or almost 800,000 a year

The Hispanic population is expected to grow 167% from 2010 to 2050 vs. 42% growth for the total population.

By 2020 30.5 million Hispanic entrants into the labor force nearly tripling the 10.7 million reported in 1990

It is estimated Hispanics spend close to 1.5 Trillion a year

Hispanics- A Growing Community

Hispanic Business Stats

According to the U.S. Census there are approximately 3.3 million HOBs or 12% of all businesses that generate an estimated 500 Million a year

In 2014 Latinos had the highest rate of new entrepreneurs HOBs are predominantly family owned with only 8% non-family ownership,

compared to 15% of Non Hispanic businesses. 89% of Hispanic entrepreneurs started their business to provide financially for

their family and 70% plan to pass their business on to family members vs. 54% of the general population.

Additionally 31% of Hispanic entrepreneurs hire extended family vs 19% of general population.

Family Business General Statistics• Studies have shown about 35 percent of Fortune 500 companies are family-

controlled and represent the full spectrum of American companies from small business to major corporations. In addition,

• Family businesses account for 64 percent of U.S. gross domestic product, generate 62 percent of the country’s employment, and account for 78 percent of all new job creation.

• The greatest part of America’s wealth lies with family-owned businesses. Family firms comprise 80 to 90 percent of all business enterprises in North America.

Business Challenges-Regulations

• As of 2008, all small businesses face an annual regulatory cost of over $10,000 per employee, 36% higher than large firms with 500 or more employees. (These are the last stats released by the Government)

• Does not include cost of complying with the Affordable Care Act • For the last 5 years small business owners cited regulations as a top

impediment to conducting business and 22 % cite regulations as their single most important problem.

• From 1977 through 2008, the number of new startups outpaced the number of failing businesses by about 100,000 annually. Since then however, the country has a deficit of about 70,000 firms.

• The Competitive Enterprise Institute estimates federal regulations cost nearly $2 trillion in 2014 through higher prices and lost productivity

Regulations continued…• World Bank found that it’s easier to start a new business in Portugal,

Romania, Panama, Hungary and Belarus than in the US• Impact of Government regulations goes far beyond increasing small

business operating costs. Regulations also impact American workers and their families as well as the growing Hispanic community.

• Decreased Hiring, Decreased Wages, Decreased time dedicated business and family.

Business Challenges-National Debt

• According to Forbes U.S. debt = 10 trillion in 2008• 2015 =18.2 Trillion dollars and by 2019 expected to be 20.6 trillion• 93k per person in 2008; 161k per person 2019• Higher taxes, Lower wages, Lower spending• Lower standard of living • Hispanics whose average age is significantly lower will bear burden of

increased debt• Big Difference between debt and deficit• Personal, Family and Business financial planning becomes even more

important

Solutions

• Education- Become educated on policies and issues affecting your business

• Involvement-Become involved with community and elected officials (let them know you are there and are paying attention)

• Networking, -Network with Chambers, Business groups and Trade Associations

• Voting