Why is it harder for Latinos, women to start small businesses? - Meriden Record-Journal

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Original source: Meriden Record-Journal
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Published: Oct 1st, 2022
Why is it harder for Latinos, women to start small businesses? - Meriden Record-Journal

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However, she saw an opportunity and decided to start her own business in 2009.
Programs like SCORE the Connecticut Small Busness Development Center also provide free mentorship for people looking to start a business.
Before a bank approves a business loan, most lenders ask applicants for 20% of the funds needed to start the business, explained Nelson Marchan of the Connecticut Small Busness Development Center.
A recent report from the SBA found that there is a large gap between workers and business owners for women and minorities, especially Latinos.
” The council provides opportunities for female business owners, including advice, grants, loans and networking.
He said many first-time business owners get wrapped up in their ideas and don’t know how their project will work in the future.
The state announced two new programs this summer – the Connecticut Small Business Boost Fund and the Connecticut Future Fund.

Why is it harder for Latinos, women to start small businesses? - Meriden Record-Journal

Gloria Montoya, of Meriden, has run a childcare business out of her home for the past 13 years. Working with small children is never an easy task, but it is made harder by the risk of business failure as the U.S. Small Business Administration (SBA) estimates that only one-third of new businesses survive their tenth birthday. Montoya left her native Peru and immigrated to the United States in 1999. She worked in a New York supermarket for a while, but decided to pursue her passion and work with children. “It’s a good calling,” she said. “It’s a lot of patience, a lot of love, a lot of ethics, a lot of communication with parents.” Montoya earned a Child Development Associate credential from Middlesex Community College and started working at a Wallingford childcare center in 2006. However, she saw an opportunity and decided to start her own business in 2009. “Families need a conscientious person to take care of kids so they can go to work at ease,” she said. Disparities in business ownership Across the United States, it is harder for Latinos and women to start a small business and Connecticut is not an exception. A recent report from the SBA found that there is a large gap between workers and business owners for women and minorities, especially Latinos. “Most of the people making decisions about who gets a loan are not women,” said JoAnn Gulbin at the Women’s Business Development Council of Connecticut. “Access to capital remains the single largest obstacle for women who are starting, trying to start or grow businesses.” The council provides opportunities for female business owners, including advice, grants, loans and networking. The council focuses on minority and low-income clients. A total of 48% of its clients are minority-owned enterprises. In a phone interview, Gulbin explained that the council hired Spanish-speaking business advisors and program managers, made its website available in Spanish and offered bilingual workshops. Hispanic women in the childcare business Gulbin also pointed to a new program that developed a series of business development services for home and center-based child care providers in partnership with the Connecticut Office of Early Childhood. One of five childcare workers in Connecticut are Hispanic women, according to census estimates from 2018. The number is higher for Meriden, as one in four childcare workers are Hispanic women. “A pretty large portion of childcare providers are Spanish-speaking,” Gulbin said. “In order to really do our best to serve them, we needed to be offering more in Spanish.” Montoya is passionate about early childhood education, but admits bookkeeping is not her strength. “I knew a lot about what a business was and how to run it, but all the bookkeeping went to my accountant,” she said. “They [the council] have given me a lot of guidance.” Montoya also received a technology grant during the pandemic and funding to change her carpet for a hardwood floor to provide better care for kids with allergies. Getting a loan In New Haven county, small businesses account for a little more than half of the county’s employment. This is higher than both the national and statewide average, according to an analysis of 2019 census data by the Record-Journal. In addition to the council, there are a number of programs designed to provide resources for small businesses owned by women and racial minorities. The state announced two new programs this summer – the Connecticut Small Business Boost Fund and the Connecticut Future Fund. Programs like SCORE the Connecticut Small Busness Development Center also provide free mentorship for people looking to start a business. Before a bank approves a business loan, most lenders ask applicants for 20% of the funds needed to start the business, explained Nelson Marchan of the Connecticut Small Busness Development Center. Marchan is from Colombia and has worked as an advisor at the center for nine years with many Latino-owned businesses. He said that a low level of English, a low credit score or lack of collateral might also prevent Latinos from getting a loan. Marchan explained most banks ask for technical documents like a business plan, financial projections and market research. “The numbers have to be realistic because if they are not, then it's a no-win situation,” he said. For long-term success, Marchan stressed the importance of creating a sound business plan– especially when the new business owner doesn't have to apply for a loan. He said many first-time business owners get wrapped up in their ideas and don’t know how their project will work in the future. “I think that sometimes the lack of planning forces companies, Latino companies, to fail,” Marchan said. Reflecting on his work, Marchan said that his three most successful clients were women who had experience in their industry and went through the paperwork required to get a loan. “We want the client to make more money because that’s good for the economy,” he said. “If the family can make better decisions, that's an amazing gift for our communities.” lguzman@record-journal.com, Twitter: @lguzm_n Latino Communities Reporter Lau Guzmán is a corps member with Report for America, a national service program that places journalists in local newsrooms. Support RFA reporters at the Record-Journal through a donation at https://bit.ly/3Pdb0re, To learn more about RFA, visit www.reportforamerica.org.
The Original Article can be found on Meriden Record-Journal

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