Cesar Madrueno and the Growth of Latino-Owned Businesses
Cesar Madrueno, founder, president and CEO of Golden State Assembly Inc., is one of five million U.S. Latino business owners who have built companies that are solving customer problems and creating jobs. His company generated over $125 million in revenues and employed over 250 people in 2020. In the same year, an investment group acquired the company with Madrueno staying on as CEO.
Rapidly Growing Part of the U.S. Economy
Over the last decade and a half, Latinos have created companies faster than all other demographic groups in the U.S. These companies are younger and smaller than the average business, but they grow revenues and create jobs at faster rates for all Americans, not just Latinos. The jobs created by these companies often come with better benefits and more growth opportunities for employees.
Barriers to Business Growth
Structural barriers prevent Latinos from reaching their full potential. The most recent research from the Stanford Latino Entrepreneurship Initiative (SLEI) shows that two of the most alarming impediments to the growth of Latino-owned businesses are accessing capital and securing corporate and government contracts. Latinos do not receive loans with the same frequency or of similar amounts as white-owned businesses, even when they are equally or better qualified across a broad array of business metrics. They also do not receive the same amount of VC funding and corporate and government contracts as white-owned businesses.
The Bottom Line
If the 4.3 million Latino-owned businesses had the same average annual revenue as their non-Latino counterparts, they would have contributed at least an additional $2.1 trillion into the economy. U.S. Latinos generated approximately $2.8 trillion in GDP in 2020, making it the fifth largest GDP in the world and growing faster than the U.S. economy. To close the business revenue opportunity gap, Latino entrepreneurs need transparent banking and VC investment decisions, as well as more equitable access to corporate and government contracts.
Empowering Latino Entrepreneurs
The Latino Business Action Network has been working to accelerate the growth of Latino-owned businesses through education, research, and the creation of an ecosystem that fosters growth and connections. It is now time for everyone to work together to remove barriers and empower Latino entrepreneurs to reach their fullest potential. Supporting their continued growth will be a worthwhile investment in our country’s economy.