Latino entrepreneurs are starting businesses at a faster pace than any other demographic group in the United States, contributing significantly to job creation and economic growth — but they continue to face major obstacles in accessing capital, according to new research from the Latino Business Action Network (LBAN) and Stanford Graduate School of Business.
The 10th annual State of Latino Entrepreneurship (SOLE) report, released ahead of the 2025 SOLE Summit at Stanford University, found that Latino-owned businesses grew by 44% over the past five years. Without this growth, the total number of businesses in the U.S. would have declined, the report said.
“Latinos are now driving the country’s business growth,” researchers noted, pointing to $800 billion in annual revenue generated by more than 5 million Latino-owned firms.
Despite this momentum, Latino business owners remain half as likely as their white counterparts to receive full funding when applying for capital (21% compared to 40%), and just over half receive any explanation for funding denials, the report found. Many entrepreneurs rely on personal savings or high-interest credit to sustain operations, underscoring persistent disparities in the financial system.
The report also highlights differences in recovery from the COVID-19 pandemic. Latino-owned businesses have rebounded more quickly, with 84% now operating profitably compared to 80% of white-owned firms.
Other findings show that Latino entrepreneurs are more likely to offer employer-paid benefits and professional development opportunities, with 89% providing benefits and 90% supporting employee growth—figures that exceed those of white-owned businesses.
While both Latino and white business owners are adopting artificial intelligence at similar rates, Latino entrepreneurs are more likely to report increased skill levels among workers and cite concerns about data privacy and ethics.
On sustainability, Latino-owned businesses also lead in adopting environmentally conscious practices. Thirty-five percent report engaging in water conservation efforts, compared to 26% of white-owned firms.
Securing government contracts remains a challenge, though certifications have improved access. Certified Latino-owned firms were 40% more likely to secure local government contracts, but limited access to decision-makers and complex procurement processes still hinder broader success.
LBAN’s report calls for coordinated action from policymakers, business leaders and support organizations to address structural barriers. The organization estimates that removing these obstacles could unlock an additional $1.1 trillion in economic impact.
The SOLE Summit, which convenes more than 1,200 participants, serves as a platform for dialogue and collaboration on advancing Latino entrepreneurship in the U.S.
