Advancing U.S. Latino Entrepreneurship

Description

Advancing U.S. Latino Entrepreneurship examines business formation and success among Latinos by identifying arrangements that enhance entrepreneurship and by understanding the sociopolitical contexts that shape entrepreneurial trajectories. While it is well known that Latinos make up one of the largest and fastest growing populations in the U.S., Latino-owned businesses are now outpacing this population growth and the startup business growth of all other demographic groups in the country.

The institutional arrangements shaping business formation are no level playing field. Minority entrepreneurs face racism and sexism, but structural barriers are not the only obstacles that matter; there are agentic barriers and coethnics present challenges as well as support to each other. Yet minorities engage in business formation, and in doing so, change institutional arrangements by transforming the attitudes of society and the practices of policymakers. The economic future of the country is tied to the prospects of Latinos forming and growing business. The diversity of Latino experience constitutes an economic resource for those interested in forming businesses that appeal to native-born citizens and fellow immigrants alike, ranging from local to national to international markets.

This book makes a substantial contribution to the literature on entrepreneurship and wealth creation by focusing on Latinos, a population vastly understudied on these topics, by describing processes and outcomes for Latino entrepreneurs. Unfairly, the dominant story of Latinos—especially Mexican Americans—is that of dispossession and its consequences. Advancing U.S. Latino Entrepreneurship makes clear the undiminished ambitions of Latinos as well as the transformative relationships among people, their practices, and the political context in which they operate. The reality of Latino entrepreneurs demands new attention and focus.

The health and growth of the U.S. economy increasingly relies on the health and growth of the economic fortunes of the country's Latino population. Latinos are now the second fastest-growing ethnic group (after Asians) and the largest "minority" group in the United States. Latinos are likely to continue to grow in importance given immigration patterns (though these are increasingly unpredictable), the young average age of the Latino population, and the relatively high birth rate among Latinos. Historically, Latinos' role in the economy was heavily concentrated in certain areas such as southern Florida and southern California, but Latinos have become a sizable demographic group throughout most of the country.

So, simply due to its size and growth, the Latino population is a substantial part of our overall economy and is important to businesses, policy makers, and the entire country given the interconnections of the economy. It is worth noting that if American Latinos were their own separate country, they would be the seventh-largest economy in the world with a gross domestic product roughly equal to the 1.3 billion people in India (Schink and Hayes-Bautista 2017).

ACKNOWLEDGMENTS

PREFACE: Latino Entrepreneurs: Challenges and Opportunities, by Paul Oyer

PART I: An Introduction to Latino Entrepreneurship— Historical Perspectives and Data Sources

CHAPTER 1: Introduction: Advancing U.S. Latino Entrepreneurship, by Marlene Orozco, Alfonso Morales, Michael J. Pisani, and Jerry I. Porras

CHAPTER 2: Entrepreneurs from the Beginning: Latino Business and

Commerce since the Sixteenth Century, by Geraldo L. Cadava

CHAPTER 3: Latino Business and Commerce: A Contemporary View, by Michael J. Pisani and Iliana Perez

CHAPTER 4: The Economic Contributions of Latino Entrepreneurs, by Robert W. Fairlie, Zulema Valdez, and Jody Agius Vallejo

CHAPTER 5: The State of Latino Entrepreneurship: SLEI Research and Findings, by Marlene Orozco and Iliana Perez

PART II: Macro Perspectives: A Regional Approach

CHAPTER 6: Latino Farm Entrepreneurship in Rural America, by Barbara Robles, Alfonso Morales, and Michael J. Pisani

CHAPTER 7: Shaping Success: Exploring the Evolution of Latino Businesses in Three Major U.S. Counties, by Edna Ledesma and Cristina Cruz

CHAPTER 8: Mexican American Founder Narratives at High-Growth Firms on the South Texas–Mexican Border, by John Sargent and Linda Matthews

PART III: Micro Perspectives: Individual and Group-Level Analysis

CHAPTER 9: Social Network Utilization among Latino-Owned Business, by Elsie L. Echeverri-Carroll and Marie T. Mora

CHAPTER 10: Acculturation and Latino-Owned Business Success: Patterns and Connections, by Michael J. Pisani and Joseph M. Guzman

CHAPTER 11: The Business of Language: Latino Entrepreneurs, Language Use, and Firm Performance, by Alberto Dávila, Michael J. Pisani, and Gerardo Miranda

CHAPTER 12: How Can Entrepreneurship Serve as a Pathway to Reduce Income Inequality among Hispanic Women?, by Ruth E. Zambrana, Leticia C. Lara, Bea Stotzer, and Kathleen Stewart

PART IV: Practice and Policy

CHAPTER 13: SLEI-Education Scaling Program: A Business Program of “National Economic Imperative”, by Marlene Orozco

CHAPTER 14: The G.R.E.A.T. Gacela Theory: Increasing Capital and Conditions for Success for High-Potential Latino Entrepreneurs Capable of Transforming Our Economy and Our Country, by Monika Mantilla

CONCLUSION: A New National Economic Imperative, by Marlene Orozco, Alfonso Morales, Michael J. Pisani, and Jerry I. Porras

ABOUT THE CONTRIBUTORS

INDEX

Sujets

• Entrepreneuriat
• entrepreneur
• Emprendedor
• Latino
• Latina
• Business
• Economics
• Hispanic
• Hispanic and Latino Americans
• Entrepreneurship
• Employabilité, métiers et formations

Informations

• Publié par: Purdue University Press
• Date de parution: 15 avril 2020
• Nombre de lectures: 0
• EAN13: 9781557539397
• Langue: English

Extrait

ADVANCING U.S. LATINO ENTREPRENEURSHIP
ADVANCING U.S. LATINO ENTREPRENEURSHIP
A New National Economic Imperative
Edited by Marlene Orozco, Alfonso Morales, Michael J. Pisani, and Jerry I. Porras
Purdue University Press · West Lafayette, Indiana
Copyright 2020 by Purdue University. All rights reserved. Printed in the United States of America.
Cataloging-in-Publication Data is on file with the Library of Congress. Paper ISBN: 978-1-55753-937-3 epub ISBN: 978-1-55753-939-7 epdf ISBN: 978-1-55753-938-0
Cover photos Maria Urena, copyright Alyson Aliano Photography Tony Aguilar, copyright Julia Robinson Jessica A. Acosta, copyright Stanford Graduate School of Business
To Jerry I. Porras for his vision on strengthening the U.S. economy by focusing on scaling Latino-owned businesses and his participation in creating both the Latino Business Action Network and the Stanford Latino Entrepreneurship Initiative.
Contents
ACKNOWLEDGMENTS
PREFACE
Latino Entrepreneurs: Challenges and Opportunities Paul Oyer
PART I
An Introduction to Latino Entrepreneurship—Historical Perspectives and Data Sources
CHAPTER 1
Introduction: Advancing U.S. Latino Entrepreneurship Marlene Orozco, Alfonso Morales, Michael J. Pisani, and Jerry I. Porras
CHAPTER 2
Entrepreneurs from the Beginning: Latino Business and Commerce since the Sixteenth Century Geraldo L. Cadava
CHAPTER 3
Latino Business and Commerce: A Contemporary View Michael J. Pisani and Iliana Perez
CHAPTER 4
The Economic Contributions of Latino Entrepreneurs Robert W. Fairlie, Zulema Valdez, and Jody Agius Vallejo
CHAPTER 5
The State of Latino Entrepreneurship: SLEI Research and Findings Marlene Orozco and Iliana Perez
PART II
Macro Perspectives: A Regional Approach
CHAPTER 6
Latino Farm Entrepreneurship in Rural America Barbara Robles, Alfonso Morales, and Michael J. Pisani
CHAPTER 7
Shaping Success: Exploring the Evolution of Latino Businesses in Three Major U.S. Counties Edna Ledesma and Cristina Cruz
CHAPTER 8
Mexican American Founder Narratives at High-Growth Firms on the South Texas–Mexican Border John Sargent and Linda Matthews
PART III
Micro Perspectives: Individual and Group-Level Analysis
CHAPTER 9
Social Network Utilization among Latino-Owned Business Elsie L. Echeverri-Carroll and Marie T. Mora
CHAPTER 10
Acculturation and Latino-Owned Business Success: Patterns and Connections Michael J. Pisani and Joseph M. Guzman
CHAPTER 11
The Business of Language: Latino Entrepreneurs, Language Use, and Firm Performance Alberto Dávila, Michael J. Pisani, and Gerardo Miranda
CHAPTER 12
How Can Entrepreneurship Serve as a Pathway to Reduce Income Inequality among Hispanic Women? Ruth E. Zambrana, Leticia C. Lara, Bea Stotzer, and Kathleen Stewart
PART IV
Practice and Policy
CHAPTER 13
SLEI-Education Scaling Program: A Business Program of “National Economic Imperative” Marlene Orozco
CHAPTER 14
The G.R.E.A.T. Gacela Theory: Increasing Capital and Conditions for Success for High-Potential Latino Entrepreneurs Capable of Transforming Our Economy and Our Country Monika Mantilla
CONCLUSION
A New National Economic Imperative Marlene Orozco, Alfonso Morales, Michael J. Pisani, and Jerry I. Porras
ABOUT THE CONTRIBUTORS
INDEX
Acknowledgments
We would like to thank the Stanford Latino Entrepreneurship Initiative (SLEI) and the current and former staff who lead the research program and the education scaling program as well as the Latino Business Action Network (LBAN) for its leadership in harnessing the power of business leaders across the country and for its financial support to SLEI’s research efforts, alongside its principal partners, 21st Century Fox, Wells Fargo, John Arrillaga, Pitch Johnson, and the Chavez Family Foundation. We would also like to thank Purdue University Press for making this volume possible and all of the book contributors for engaging in thoughtful scholarship with SLEI for the past few years. SLEI has collected annual survey data made possible by the generosity of Latino business owners across the country who provide their time in completing our detailed surveys, including those who participate in the SLEI-Education Scaling program. Together we have formed a community of scholars and business leaders working to advance the study and knowledge of Latino-owned businesses.

As this book went to press, the SLEI family was saddened by the news of the untimely death of Dr. John Sargent, professor of international business and entrepreneurship at the University of Texas Rio Grande Valley (Edinburg, TX). John and wife, Linda Matthews, authored the chapter on “Mexican American Founder Narratives at High-Growth Firms on the South Texas–Mexican Border” contained in this volume. John was a lifetime student of business and economic phenomena in Mexico, Latin America, the Texas–Mexico borderlands, and of Latinos in the USA with publications in leading outlets (i.e., Journal of World Business, World Development, Journal of Business Ethics , and Journal of Borderlands Studies ). John served as a mentor to many scores of students in Latino South Texas, sharing his deep knowledge of maquiladoras, supply chains, innovation, skill development, and more recently of business founders and Latino entrepreneurship. His scholarship, good nature, and friendship will be missed.
—The Editors
PREFACE
Latino Entrepreneurs: Challenges and Opportunities
Paul Oyer
The Mary and Rankine Van Anda Entrepreneurial Professor Faculty Director, Stanford Latino Entrepreneurship Initiative Stanford University, Graduate School of Business
The health and growth of the U.S. economy increasingly relies on the health and growth of the economic fortunes of the country’s Latino population. Latinos are now the second fastest-growing ethnic group (after Asians) and the largest “minority” group in the United States. Latinos are likely to continue to grow in importance given immigration patterns (though these are increasingly unpredictable), the young average age of the Latino population, and the relatively high birth rate among Latinos. Historically, Latinos’ role in the economy was heavily concentrated in certain areas such as southern Florida and southern California, but Latinos have become a sizable demographic group throughout most of the country.
So, simply due to its size and growth, the Latino population is a substantial part of our overall economy and is important to businesses, policy makers, and the entire country given the interconnections of the economy. It is worth noting that if American Latinos were their own separate country, they would be the seventh-largest economy in the world with a gross domestic product roughly equal to the 1.3 billion people in India (Schink and Hayes-Bautista 2017).
While Latinos are an important part of the U.S. economy, the group on balance is in a precarious position. At the entrepreneurship level, Latinos own businesses at a lower rate than the rest of the population. But the economic challenges to the Latino community go well beyond entrepreneurship, given that the average Latino household has less than one-fifth the wealth of a typical American household and earns about 46 cents on the dollar relative to the broader population (Dettling et al. 2017). These differences reflect underlying differences in education and other factors: as the labor market value of skill and education has increased in recent decades, the Latino population has had difficulty holding onto its relative standing in the U.S. economy.
The Stanford Latino Entrepreneurship Initiative (SLEI) and the contributors to this book are interested in understanding how entrepreneurship can play a role in developing the economic fortunes of American Latinos. In SLEI’s 2017 State of Latino Entrepreneurship (SOLE) report, we published figures and statistics that highlight the current challenges of Latinos while also showing some signs of hope that Latino entrepreneurship is growing and is poised for future growth that will contribute to the economic development of Latinos.
Figure P.1 , which is taken from the 2017 SOLE report, gives a graphical representation of some of the basic facts and shows causes for both concern and optimism. The top line on the graph reinforces the growth of the Latino population, which has more than doubled as a share of Americans in the last three decades. However, note that Latinos are significantly underrepresented as business owners. The share of businesses that are owned by Latinos is much lower than Latinos’ share of the population, and the share of larger firms (“employer” firms, meaning firms that have employees beyond the owner) is about a third of the share of Latinos in the population. In other words, an important contributing factor to the difference in household wealth between Latino and non-Latino households appears to be that Latinos are much less likely to hold an ownership stake in a business.

Figure P.1 Latino population and businesses in the U.S. (Source: Calculations from the SBO and U.S. Census.
The graph also suggests a hopeful side, as trends may be moving more in Latinos’ favor. Latinos are clearly growing as a share of the population but are growing even faster as a share of business owners. So, the gap between the Latino population share and the share of businesses owned by Latinos appears to be closing in recent years. As the 2017 SOLE report details, the growth rate of Latino larger firms (those that employ workers beyond the founder) from 2007 to 2015 was robust and much faster than the growth rate for non-Lati