©2005 by Yessenia Salazar

Why is it that Latinas are still underrepresented among business owners? There are certainly few Latinas in business. The business field is predominantly a man’s world. Even though the numbers of Latina-owned firms have grown in the last few years, they still make up a small number of Latino/a businesses. Latinas have to work twice as hard to receive the same rewards. Because of the difficulties of gaining access to education, language, capital, and training and the unfamiliarity with U.S. business laws and regulations, Latinas often encounter discrimination in the business world. This is not to say that there are not any Latinas who are executives or CEOs. Other Latinas who decide to join the business field should follow the same footsteps taken by the few who are successful. Education may be key. Through education, Latinas can open doors for themselves and not be limited to getting married, having a family, and working in undesirable jobs. Latinas need to seize opportunities. Working in a male-dominated industry poses many challenges, however. Women who enter these fields must be specially trained for specific responsibilities. Through a strategy of comadrazgo, Latinas joining the business field can learn how to receive support, give support, and educate those who need assistance. Training makes a large contribution to the start of a business. Obstacles should be eliminated through the dissemination of information to Latinas in business. Through such means, Latinas will gain the potential to control their own destinies and erase the gender lines in the business industry.

According to the Small Business Administration, Latina entrepreneurs are the fastest-growing segment of the small business economy, starting new businesses at roughly twice the rate of men.1 Although Latinas control just 5 percent of all women-owned businesses,2 their numbers have certainly grown in the business industry, as they employ thousands of people and generate billions in sales. In 2003, the Hispanic Intelligence Special Report stated that the number of firms owned by Latina women experienced a growth rate of 39.3 percent from 1997 to 2002, outpacing the overall total growth in number of firms owned by minority women.3 Heading into the business field is not an easy task. Too often women accept the stereotypes and assume that because of their gender they are not able to provide excellent service and be successful business owners. In fact, Eneida Uehlin, president of DANA Graphics, a Cincinnati-based design company, stated that clients often presume that her husband is the president of her company. Many times Latinas are not seen as possible contributors to successful businesses.

The level of education Latinas receive determines their preparedness when opening their businesses. Latinas who own businesses tend to be younger than male business owners. About 53 percent of Latina entrepreneurs are between the ages of 35 and 44, compared to 30 percent for Latino business owners.4 Latinas are therefore far less likely to have successful businesses because of their lack of education and experience. Latino/as in general tend to have the least amount of education in the United States. They are the least likely group to graduate from high school, enroll in college, and receive a college degree. The high school drop out rates among Latino/as in October 1999 were higher than those of white non-Hispanics.5 Latinas in particular have the highest drop-out rate in high school of any social group. There are several reasons why Latinas drop out at a much higher rate. One major factor is pregnancy. A third of young women surveyed by the Academy of Educational Development cited pregnancy or marriage as the reason for dropping out of high school.6 Another reason is the lack of proficiency in English. The speech and language barriers also have a lot to do with cultural differences. The best response to language barriers has been bilingual education programs. Bilingual education programs were designed to achieve dual language knowledge (students’ native language and English), offer ways to help students transfer into English classes, and work in both students’ native cultures and American cultures effectively. However, many schools do not offer high-quality bilingual programs. In order for Latinas to succeed, there must be school staff encouraging them, valuing their culture and language, and involving their parents. Educational programs are a key to reversing the trend of under-paid Latinas. Boundaries must be broken in order for Latinas to take non-traditional career paths. Events featuring successful Latinas are also a way to inspire other Latinas to pursue successful futures. A recent report indicated that the lack of math skills significantly decreased the earning power of women with a less adequate educational backgrounds.7 This is consistent with previous studies pointing out that Latina business owners expressed slightly more business problems in gaining access to capital and in debt management.8 The problems outlined in these studies stem from Latinas’ lack of outside support, experience, and education.

Perhaps Latinas who were born in the United States have an advantage in business compared to immigrant Latinas. These women have gone through school, are proficient in English, and are more aware of outside resources. Latina immigrants have to work twice as hard. They have to go through training, access financial resources, and learn English. Latinas interviewed by the National Foundation for Women Business Owners said they were certainly not newcomers in the business industry. Those surveyed had owned their businesses for an average of 12 years. Two-thirds were born in this country, and one-third were immigrants who had lived here for an average of 30 years.9 Their success can be attributed to their access to resources and education. One Latina entrepreneur board member in the Hispanic Chamber of Commerce shares her success with other Latina businesswomen: “I enrolled myself in a business seminar and learned how to develop a business plan, work with budgets, and how to effectively market and operate my own business.”10 Many times women have the ability to be remarkable entrepreneurs but fail to do so because they have not built a strategy to tackle their goals. The few women in business who do manage to achieve their career goals do so with a detailed strategic plan.

In searching for ways to boost Latinas’ business careers, comadrazgo comes to mind. Organizations such as 100 Hispanic Women and The Latina Leadership Network (LLN) focus on providing access to advancement opportunities in careers that would otherwise be unattainable.11 They reach out to Latinas, encouraging professional success in order to give back to the community after achieving positions of power and leadership. This is called comadrazgo. Comadrazgo refers to a strategy used by Mexican-American women to unite together and help each other. Their duty is to educate women, share information, and network. The goal is to have Latinas come back to apply their knowledge and success to the community. Comadrazgo is a commitment all women have with one another. It is a method of advancement and a way to dismantle discrimination practices. Latinas have the power to succeed, but not all women have the right guidance. Women who are able to overcome obstacles and achieve successful careers have a responsibility to reach out to Latinas who are entering the business field with no experience. It is a technique to come together as allies, as women, as a community, and, most importantly, as Latinas. Dr. Donna Maria Blancero, chairwoman of the board of the National Society of Hispanics, found in her research that women who were mentored by a senior executive manager were more likely to be successful (as measured by salary, promotion and satisfaction).12 From the various forms of support received from victorious women, a new Latina emerges—a Latina who has been given the knowledge of how to be successful by herself and for her family.

Patricia Lopez is the owner of Lopez Mercado in Sun Prairie, Wisconsin. She is a Latina who is deliberately looking for new ways to reach out to the Latina/o community. She opened the first ethnic grocery store in Sun Prairie. Lopez came to the United States when she was eight years old. Her parents were migrant workers and moved constantly back and forth between Mexico and the U.S. The United Migrant Opportunity Services (UMOS), an organization that addresses the needs of the country’s migrant workers who travel through rural Minnesota and Wisconsin, offered Patricia’s parents an opportunity to live permanently in the United States.13 From 1967 to 1981 she lived in Madison, and in 1981, she moved to Sun Prairie. Now a long-time resident, she is able to offer her services to the Latina/o community. Not only does she provide services with her store, but she also lends a hand in any way she can to Latino/a immigrants who arrive in the United States and settle in Sun Prairie. Lopez is not part of any business organizations and says, “I don’t feel the need to join any organization to accomplish what I know I can do on my own. Of course if it’s something more serious, then I will ask for assistance. I guess I am my own organization and help Latinos as much as I can.”14 She helps Latina/os get their drivers’ licenses, assists in food drives, and collects furniture for those who need it. She is an active role model in the Latino/a community: “If anyone needs something, they know they can always come to me for help.”15 She knows there is discrimination against Latino/as because of the language barrier and their educational status. With what she knows, she feels a need to make Latina/os aware of the services that are offered. Free English classes are available at Madison Area Technical College (MATC), and Lopez strongly encourages Latino/as to attend the classes: “It is very important to learn English, that way you don’t have to depend on anyone else.”16 She contends that if we want to see more successful Latinas in business, the first step is to search for assistance from people already in the field. A Latina faces complicated routes in order to be successful, and Patricia Lopez has been able to achieve her goals. Other Latinas have immense potential to achieve their career goals as well, contributing to their community and the U.S. economy.

Latinas are not represented in the job market as often as they should be. Most of them do not receive the right resources to excel. Their accomplishments result from hard work. Their cultural background can produce challenges to success but does not stop Latinas from entering the business field. Networking is a way for Latinas to overcome barriers in levels of advancement and discrimination. In this way, Latinas are able to accomplish personal and professional growth at the start of their careers. With comadrazgo, Latinas come together to help one another and achieve higher career goals, regardless of how many pitfalls they face. The new Latina has now arrived and will continue to reach for ever higher goals, knowing that she has comadres y compadres by her side.

1. 1. Richard-Abraham Rugnao, “ Latina Entrepreneurs Revolutionize the Business World,” Hispanic 11, no. 6 (June 1998): 1.
2. 2. Mark Fitzgerald, “Rompiendo Barreras,” American Demographics 25, no. 8 (November 2003): 1.
3. 3. Anthony Limon, “Networking Latina-style,” Hispanic Business 26, no. 4 (April 2004): 64, 66, 72.
4. 4. Soyeon Shim and Mary Ann Eastlick, “Characteristics of Hispanic Female Business Owners: An Exploratory Study,” Small Business Management 36, no. 3 (July 1998): 7.
5. 5. Phillip Kaufman, Jim Y. Kwon, Steve Klein, and Christopher D. Chapman, “Education Statistics Quarterly,” Education Statistics Quarterly 2, no. 4 (1999),
6. http://nces.ed.gov/programs/quarterly/vol_2/2_4/e_section3.asp.
7. 6. Olga Vives, “Latina Girls’ High School Drop-Out Rate Highest in U.S.,” National Organization For Women, http://www.now.org/nnt/fall-2001/latinas.html.
8. 7. Rugnao, “ Latina Entrepreneurs,” 2.
9. 8. Shim and Eastlick, “Characteristics of Hispanic Female Business Owners,” 6.
10. 9. Mary Rodriguez, “ Latina Entrepreneurs: An Economic Force in the U.S.,” Women Business Owners (2000).
11. 10. Rugnao, “ Latina Entrepreneurs,” 1-2.
12. 11. Limon, “Networking Latina-Style,” 64, 66, 72.
13. 12. Ibid.
14. 13. Patricia Lopez, interview by author, tape recording, Sun Prairie, Wisconsin., 30 October 2004.
15. 14. Ibid.
16. 15. Ibid.
17. 16. Ibid.

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