Hispanic Small Business Outlook

By Dana Obrist

Confidence in the small business outlook is on the rise.

According to a December 2023 report from the U.S Chamber of Commerce, despite headwinds from high inflation and a tight labor market, small business confidence was up at year-end and remains steady after the first quarter of 2024.

And that is good news for business owners, including the more than 600,000 Hispanic small business owners in Florida. The Sunshine State ranks as the second highest in the number of Hispanic small business owners.

We had an opportunity to sit down with Regions Commercial Banking and Private Wealth Management bankers in Central Florida to talk about the state of the market for Hispanic business owners and what challenges may still be lingering.

Challenges Remain

“Access to capital,” said Dario Orozco, Regions Commercial Banking relationship manager. “This is the No. 1 challenge that many small business owners are facing, and with higher interest rates and inflation, this access becomes even more critical.”

Joey Leyva, owner of Acapulco Tropical, noted that they are seeking to continue to open new locations in Central Florida to reach the growing community of newer immigrants to help them as they adapt to life in the U.S.

Access to capital. This is the No. 1 challenge that many small business owners are facing, and with higher interest rates and inflation, this access becomes even more critical.

Dario Orozco, Regions Commercial Banking relationship manager

“We see an increased opportunity for the market since many people have migrated from Cuba, Puerto Rico, and Venezuela in the past two years,” said Leyva.

But, hiring and retaining talent along with higher payroll costs has proven to be challenging for Leyva and other business owners.

“The challenges that many of us are seeing is in hiring bilingual people to target the market we are in and pay rates have gone up significantly,” said Leyva.

Understanding the Banking Landscape

Zenaida Negron, Regions Commercial Banking relationship manager in Orlando, is one of many bilingual commercial relationship managers in Central Florida. She sees this trend of the growing Hispanic population in the market as an opportunity to educate business owners and consumers alike on the U.S. banking system.

“We work with many professional service providers in the market and often serve as a conduit with the Hispanic community,” said Negron. “From attorneys to accountants, we are often engaged to work with their Hispanic clients who are business owners in this market.”

Her colleague Maria Rojas agrees.

“We are crucial for business owners, especially as they are coming from outside the U.S.,” said Rojas. “They look to us to help them understand more around the business and financial landscape.”

We work with many professional service providers in the market and often serve as a conduit with the Hispanic community.

Inflationary Impacts, a Mixed Bag

An owner of a chain of grocery stores we talked to pointed to inflation as a key challenge facing consumers, noting that the supermarket industry is often a good gauge for the overall economy.

But there may be some positive impact on this business according to another grocery store owner we spoke with who noted that they have experienced an uptick in business as a result of higher prices in large chain grocery stores leading to more traditional shoppers shifting their business to Latin supermarkets where prices may be lower.

Shifting Strategies

Tomas H. Bello, President and owner of Tuwa Pro LLC, a Jeep and utility vehicle accessory wholesaler and retailer, noted that the current obstacles are constant. From competition from national distributors and increasing customer demand for shorter shipping periods, they need to stock larger inventory selections to compete.

“The economic growth in the Central Florida region has allowed for increased demand in our products,” said Bello. “Access to capital has allowed us to fund those larger orders from Latin America and Asia that are essential for us to keep our competitive advantage and offer same-day shipping and delivery for local orders.”

Another supermarket owner noted that global supply chain challenges have shifted their model to purchasing more locally grown produce, something many consumers like to see. Similarly, while some consumers are feeling the pinch of higher interest rates, another grocery store owner in Central Florida noted that she hasn’t seen much impact in terms of their business as most of the transactions in her stores are cash, debit card or EBT.

Resources for Hispanic Small Business Owners

Alex Gonzalez, Regions Private Wealth Management executive for the North Florida region, is very involved with the Hispanic Chamber of Metro Orlando. Regions has been a member for many years and recently expanded its commitment, becoming a Trustee member. Gonzalez is a member of the Hispanic Business Advocacy Committee, was involved in the 2023 Don Quijote Awards, and serves as the liaison between the Chamber and Regions.

“The Chamber offers events and resources to help businesses connect and grow within our community,” noted Gonzalez. “Chamber benefits help business owners navigate through all stages of the business life cycle.

He shared that the Chamber also partners with two organizations that specialize in helping businesses get started in the market through Prospera and the Hispanic Economic Advancement Foundation, a newly formed nonprofit that is helping existing businesses scale and expand.

The Chamber offers events and resources to help businesses connect and grow within our community.

Alex Gonzalez, Regions Private Wealth Management executive

Founder of the Hispanic Economic Advancement Foundation and former CEO of the Hispanic Chamber of Metro Orlando, Gaby Ortigoni, noted that the growth trends of the Hispanic population and subsequent Hispanic business community have been fueled by population surges following Hurricane Maria in Puerto Rico and the Sunshine State’s open-for-business policy during COVID-19.

“With the proximity of the island and Latin American countries, we saw an increase of businesses from Puerto Rico and Latin America as they relocated to either open or expand their businesses,” said Ortigoni. “Central Florida offers a vibrant market for small businesses.”

Ortigoni left her post as CEO of the Hispanic Chamber in early 2024 to launch the Hispanic Economic Advancement Foundation, seeded by the Chamber, to support Hispanic business owners seeking to scale their companies and obtain contracts with private and public entities.

“The Hispanic community tends to be very young (30-35 median age) and entrepreneurial,” said Ortigoni. “This segment is opening businesses at a higher rate than any other demographic groups combined.”

“This creates an opportunity because our local Hispanic business community is seeking programs that provide capacity building and mentorship opportunities,” said Ortigoni. “Older generation business owners are selling or passing their businesses to the next generation. Many Hispanic entrepreneurs in this market purchase existing businesses.”

Ortigoni noted that Central Florida has also seen a lot of growth in franchises within the Hispanic business community, as these are proven business models with lower start-up risk. As for the future for Hispanic business owners and entrepreneurs, the future looks bright as the business-friendly landscape as well as public and private funding and finance opportunities in the market grow.