There are nearly 30 million small businesses in our economy, creating 2 out of every 3 new jobs in America. Hispanic owned businesses are starting up at a rate of 3 to 1 when compared to the general market. A look at Hispanic-owned small businesses.
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Traynham: According to government studies, there are nearly 30 million small businesses in our economy creating two out of every three jobs right here in America. And Hispanic-owned businesses are starting up at a rate of three to one when compared to the general market. Hello, everyone, and welcome to "Comcast Newsmakers." I?m Robert Traynham, and joining me today is Javier Palomarez, the President and CEO of the U.S. Hispanic Chamber of Commerce. Javier, welcome to the program.
Palomarez: Hi, Robert. How are you?
Traynham: So, here?s what we know. We know that our economy is really revving along, thankfully, after a couple of years of stagnant growth. We know that small businesses have always been the engines of our economy. And for the benefit of our viewers at home and watching on their smart device, small businesses are technically defined as an organization that?s 500 employees or less. What?s astonishing is that Hispanic-owned businesses are growing at a phenomenal rate.
Palomarez: Yeah. You know, I?m happy to report that as we stand right now, the United States Hispanic Chamber of Commerce now represents 4.1 million Hispanic-owned firms -in this country... -
Palomarez: ...that collectively contribute over $661 billion to the American economy. And as you stated, Hispanic-owned firms are starting up at a rate of three to one when compared to the general market.
Traynham: Why is that the case, Javier? Let?s focus on that for a few moments.
Palomarez: You know, I think it has a lot to do with, generally, the economic downturn. People were looking for alternatives to, say, a corporate job, by way of example. That coupled with, really, a DNA that?s inside the Hispanic community that?s all about entrepreneurialism, kind of boot-strapping, and kind of making your own way. You look at those two factors combined, an economic kind of environment that?s somewhat challenging, and people started popping out of corporate America, beginning their own ventures. And what you have now is this amazing growth rate.
Traynham: It sounds that way, Javier. I want you to debunk a myth. I would assume that the Hispanic small-business coalition, if you will, is probably in the industry business, maybe construction business. I would assume that it?s male-dominated. Is that a fact or myth?
Palomarez: Actually, that?s a fantastic question because it is now a myth. From time immemorial, that was the case. It was generally men leading the charge, and it was generally construction or the trades. Today, however, it is Hispanic-owned women that are really moving forward here, and they?re the proverbial tip of the spear, if you will. And amazingly, they are in the services and the technology sector. That?s where the growth is really happening. In fact, if you dissect Hispanic women out of the overall Hispanic umbrella, if you will, you?ll find that it?s Hispanic women that are growing now at a rate of five to one when compared to the general market.
Traynham: So, even faster. So, the growth rate is even faster among women. Why do you think that?s the case?
Palomarez: Again, I think it has a lot to do with people going through a tough economy, having to figure out how to kind of make ends meet, and out of that environment, coupled with a DNA that?s about networking and working with and through family, kind of working with your neighborhood, and the entrepreneurial spirit that really comes from Latin America, you put all that together, and 10 years later, what you have are Hispanic women striking out and leading the charge in terms of job creation in this country.
Traynham: Well, speaking of job creation, according to the Small Business Administration, 2.3 million employees are employed by Hispanic-owned businesses. 2 million are small businesses with fewer than 500 employees, and 1.7 million are at firms with fewer than 100 employees. I mean, those are several million people that are being employed by Hispanic businesses.
Palomarez: Yeah, and the good news is, it always has been in America. As you stated so aptly, American small business is the engine that drives the American economy. And 2/3 out of all new jobs in this country are actually created by the small firms. So, this is what we need as a society, as a country. We need to invest in American small businesses, certainly Hispanic-owned businesses, because these are the people that are driving the innovation, making the tax payment, and creating the jobs.
Traynham: Javier, thank you very much for joining us. And thank you for joining us for this edition of "Comcast Newsmakers." I?m Robert Traynham. Have a great day, everybody. We?ll see you next time. Bye-bye.