According to a new report from consulting firm McKinsey, Latina-owned businesses are driving a significant wave of entrepreneurship in Miami and the United States. 

The study highlights how Latinos, who make up 18% of the US population, start businesses at nearly double their population rate. This accounts for 36% of all new businesses nationwide.

Latinas Leading the Way

Latinas play a crucial role in this entrepreneurial surge. Between 2017 and 2021, Latinas started 31% of new Latino businesses. Latina-owned companies grew by 33% during that same period, almost five times the growth rate of non-Latina-owned companies. 

“Latinos are about 18% of the population, and that they’re starting businesses at twice the rate is outstanding,” insisted Alberto Chaia, an economist and senior partner at McKinsey’s Miami office.

The report also reveals that Latina entrepreneurs tend to be younger than their male counterparts. Thirty-four percent of Latina business owners are under 45, compared to 31% of male businesses. 

Miami’s Unique Business Environment

Miami stands out as a hub for Latino entrepreneurship. Latinos comprise nearly half the city’s population and own 27% of local small businesses. The report found that Latino small business productivity in Miami surpasses non-Latino businesses, distinguishing Miami from other American cities.

Chaia attributes this success to Miami’s strong Latino community, which fosters networking and collaboration among entrepreneurs. “It’s easier for Latino entrepreneurs to connect in Miami, and that’s a byproduct of the city’s large Latino population,” he said.

Maria Budet is the chief marketing officer at the Miami-Dade Beacon Council. She echoed this sentiment while emphasizing the collaborative nature among Latina entrepreneurs: “These women look out for each other. They make sure if they’re the first, they’re not the last.”

Latinas Supporting Latinas

Karla Hoyos owns Tacotomia, a taco restaurant in downtown Miami and downtown Doral. She embodies this ethos of mutual support. Hoyos actively trains her predominantly Latina staff to prepare them for future entrepreneurship.

“My goal is to support them and give them an opportunity,” Hoyos confirmed. She noted that Miami’s business community particularly supports women—and minority-owned businesses, making it a more welcoming environment than elsewhere she has worked.

Challenges in Accessing Capital

Despite the strides in Latino entrepreneurship, significant obstacles remain. Most urgent is accessing much-needed financial resources. While Latino credit ratings are improving, they still lag behind white entrepreneurs. 

Latinos are 15% less likely to secure loan approvals, and nearly half of Latino credit applicants do not receive the full amount they request. As a result, many turn to family and friends for financial support. While admirable, this practice highlights a substantial gap in traditional financial services. 

“There’s nothing wrong with friends and family, but it’s different from what we’re seeing among non-Latino groups,” Chaia noted. “We feel this is an opportunity for financial institutions to look at opportunities of serving Latino entrepreneurs.”

Looking Ahead

The rise of Latina-owned businesses signals a broader shift in the US entrepreneurial landscape. As Latinas make significant contributions to the economy, fostering an inclusive and supportive environment for these entrepreneurs will be key to sustaining this momentum.

Budet underscored the importance of community in driving this progress: “We want to drive an inclusive, sustainable community in Miami. Women are very much a part of that.” 

As they pave the way for others to follow, Latina entrepreneurs like Hoyos are already making this vision a reality.