Latinos are a fast-growing, young segment of the U.S. population that’s also highly entrepreneurial, yet businesses that Latinos start often struggle to get the financing they need to grow and succeed.
These businesses are among the “most overlooked opportunities for investors,” the Boston-based Bain & Co. wrote in a report released earlier this month.
According to the report, in the decade from 2007 to 2017, 50% of net new businesses in the U.S. were started by Latinos. And many of these businesses outperform their white-owned peers until they reach about US$1 million in revenue.
That’s because many of them fund their growth by loading up on high-cost debt, or mortgaging their homes, “all the things that are a problem when you’re scaling” a business, says Hernan
a partner at Bain and co-author of the report.
Young businesses would be better off financing their initial growth with low-cost loans from