©2005 by Xiomara Vargas Aponte

Over the last few decades, there have been dramatic changes in the roles of women workers, who now number forty-four million in the United States.1 The male-dominated workplace has posed a challenge for women rising to positions of power, especially Latinas. During the 1980s and 1990s, hearing about Latinas as entrepreneurs in the U.S was unusual, mainly because Latinas were mostly working in agricultural, industrial and domestic jobs, and were less likely than other segments of the population to own businesses. In addition, perhaps because Latinas were coming from two disadvantaged groups (women and Latina/os, both groups that have struggled for years for acceptance and equal rights), many did not expect Latinas to be entrepreneurs because the common stereotype is that all entrepreneurs are white men.

Latinas, however, found themselves in the unique role of encouraging cultural diversity, economic independence, and personal advancement through their experience in the workplace and the mentoring of other Latinas. This has led to more Latinas leaving agriculture, industry, and domestic work to become part of the entrepreneurial world. Today, the idea that a Latina entrepreneur is only a utopian vision is no longer true. A wide range of evidence shows that Latina business ownership is widespread, and Latina business owners are a diverse group of women, ranging from immigrants to those who have been in the United States for multiple generations. This classifies Latina business owners as part of the mainstream U.S. business culture. They are present in every industry and are now recognized as an economic force in the United States.

My paper will explore several questions: What motivates Latinas to become business owners? How do they acquire their businesses? Do they use methods similar to other women business owners when running their businesses? How do they differ from non-Latina female business owners? Finally, is entrepreneurship among Latinas viewed as a form of cultural expression? I found answers to these questions both in statistical data and in interviews with Latina entrepreneurs in Madison, Wisconsin, which describe the major characteristics of the complex profile of Latina entrepreneurs, reaffirming the fact that they are a fundamental ingredient in the nation’s economy.

Latina Entrepreneurs in the United States: Immigration and Diversity

Most Latina business owners are either first- or second-generation U.S. residents (see figure 1). These women have either immigrated themselves (34% are first -generation), or else one or both of their parents immigrated (23% are second generation). However, a full 42 percent of Latina business owners indicate that both they and their parents were born in the U.S.2 This data reaffirms that their presence is not a new phenomenon. They have been living in the U.S an average of 30 years and owning their businesses an average of 10 to 12 years, statistics that do not vary significantly across “residence” generations.3

It is also important to identify that first- and second-generation Latina entrepreneurs have diverse backgrounds (see figure 2). Latin America is a mestizo region where races and cultures blended to form a new cultural identity. Diversity, then, is a cornerstone of Latina entrepreneurship. While nearly half (46%) have immigrated from Mexico, 17 percent immigrated from Cuba, 14 percent from South America, 8 percent from Central America, and 9 percent from the Caribbean (mainly Puerto Rico and the Dominican Republic). These statistics reflect general U.S immigration patterns. First-generation immigrants are most likely to be from Mexico (38%), followed by Cuba (19%), South America (17%) and Central America (13%). Second-generation immigrants are most likely from Mexico (59%),but some are from Cuba (13%) and the Caribbean (11%). Female entrepreneurs from Mexico account for nearly six in ten second-generation immigrants.

Latina Entrepreneurs in the Borderlands

Latina-owned businesses are bringing new perspectives and energy to the U.S. and global economies. They are recognized nationally as trusted and competent entrepreneurs. Even though Latinas only control 8 percent of all women-owned businesses, their segment of the market is growing faster than that of other minority groups. From 1987 to 1996, the number of Latina small businesses grew 206 percent. Estimates from 2002 show that Latina entrepreneurs own over 470,300 firms, providing jobs to nearly 198,000 people and producing around $29.4 billion in revenue.4 The states with the greatest number of Latina business owners are New Mexico (20% of U.S. total), Texas (18%), California (17%), Florida (16%), New York (14%), and Arizona (13%). In the border states, the increase in Latina-owned businesses has accelerated in the last few years (see table 1). This increase positively affects economies along the U.S.-Mexico border and is an effective method of reducing poverty in the borderlands.

Latina Entrepreneurs in Wisconsin

The highest numbers of Latina business owners live in states that present high rates of Latina/o populations. However, in midwestern states such as Wisconsin, the Latina/o population has grown more than 107 percent. This outstanding growth of the Latina/o community has generated advancements in the Latina/o enterprise in Wisconsin.6 According to data from the Hispanic Chamber of Commerce of Wisconsin, there are 5,500 Hispanic-owned businesses throughout the state, 1,675 of which are Latina-owned. In Madison, the number of Hispanic businesses increased remarkably during the last few years. Latinas run many of those firms as either owners or partners. Actually, the first Hispanic business in Madison, Fiesta Fashion, opened around ten years ago and is owned by Maria Garcia. As a Latina entrepreneur in Madison who owns four different establishments in the city, Garcia is a role model.

In addition to Garcia, there are other Latina entrepreneurs in Madison who own a variety of businesses, from food services to radio stations, including Graciela Rojas, Evelyn Arteaga, and Lupita Montoto. Through their examples, we can see the barriers Latinas have overcome in order to live out their dreams of running their own businesses.

What Motivates Latinas to Become Entrepreneurs?  

Women become entrepreneurs for many reasons. Some are frustrated by barriers to career advancement, for example (see figure 3). Some women want a particular work culture, or the flexibility that they cannot find in conventional jobs. Like other business owners, Latina entrepreneurs cite independence as their key motivation for starting their own businesses. The means of becoming entrepreneurs are similar for Latina and non-Latina business owners in general. Both primarily start their own businesses; Latina entrepreneurs are somewhat less likely to purchase an existing business. Once ownership is achieved, moreover, Latina entrepreneurs often reap the same rewards and feel the same frustrations as other women entrepreneurs, including the thrill of being their own boss and the challenge of putting in long hours. In a survey by the National Foundation for Women Business Owners, when asked about motivations for opening a business, Latina entrepreneurs cited the ability to be their own boss and gain independence (20%).

In the National Foundation for Women Business Owners survey, Latina entrepreneurs cited many other sources of satisfaction that come with operating their own businesses (see table 2). Other rewards that accompany business ownership include flexibility (18%), freedom and independence (12%), having personal and family time (11%), and the satisfaction that comes with completing a job, satisfying and serving customers. With business ownership, though, also come frustrations. Latina entrepreneurs encounter many of the same frustrations and challenges as do all women business owners. Top sources of frustration include the long working hours (14%), managing cash flow and payroll (9%), and overwhelming responsibility (9%). Likewise, women in general indicate that their main frustrations are employee issues, long hours, numerous responsibilities, retention of employees, financing, and paying taxes.

The average age of Latina entrepreneurs is 48 years old, which does not vary significantly by how many generations the family has lived in the U.S. Furthermore, three-quarters are married and all average two children per household. One-third of Latina business owners have at least a bachelor’s degree, while 27 percent have only a high school education or less, and 35 percent have had some college or a two-year degree. Among Latina entrepreneurs, this is relatively consistent, no matter the length of residence.

Funding Sources for Latina Entrepreneurs  

During the Reagan administration in the early 1980s, the federal Small Business Administration (SBA) created a program called Surviving Business Crisis. The program was a business support plan established to assist minority women-owned businesses.10 Latina entrepreneurs showed a lack of interest in pursing this government help. They simply did not want outside control over their businesses. Also, many of them had already saved some capital, and they had support from family members. Today, things have changed a bit. Latina entrepreneurs become business owners using roughly the same amount of capital as women business owners in general (see figure 5). For example, data from the National Foundation for Women Business Owners show that in 2000, 18 percent of Latina entrepreneurs used $50,000 or more to fund their businesses, similar to 17 percent of women business owners overall. Thirty-six percent of Latinas and 27 percent of all female entrepreneurs started or acquired their businesses with between $10,000 and $50,000 in capital, while 32 percent of Latinas and 44 percent of all female business owners utilized less than $10,000 in capital.

In order to start their businesses, Latina entrepreneurs use money from various sources (see figure 6). While most Latina business owners use their personal savings, some rely on loans from a commercial bank. Other prime sources for start-up financing include family members, a personal credit card, friends, a spouse, and a refinanced home. Latinas who do not borrow money indicate that they save enough money to start their businesses.

Latina entrepreneurs now utilize different minority development programs offered by the U.S. Small Business Administration. These programs exist in cities throughout the country, and their purpose is to help socially- and economically-disadvantaged business owners. The SBA assists these firms in gaining equal access to the resources necessary to develop their businesses and, therefore, improve their ability to compete on an equal basis in the mainstream of the American economy. These programs are not only meeting Latinas’ financial needs; in addition, they educate the businesswomen, providing them with training and assistance in the management of their businesses, information about how to open a business, and help in contracting with the federal government. On the whole, these programs provide information to Latinas on how to meet both financial and networking needs.

In addition to the federal programs for minority entrepreneurs, there also are many organizations founded by Latina/os in order to provide extra resources for Latina/o business owners. For instance, the United States Hispanic Chamber of Commerce (USHCC) was established in 1979, when several dedicated Latina/o leaders realized the enormous potential of the Latina/o business community in the United States. They envisioned a national organization to represent their interests before the public and

private sectors. The primary goals of the United States Hispanic Chamber of Commerce are:

• to implement and strengthen national programs that assist the economic development of Hispanic firms
• to enhance business relationships and partnerships between the corporate sector and Hispanic-owned business
• to promote international trade between Hispanic businesses in the United States and Latin America
• to monitor legislation, policies and programs that affect the Hispanic business community; and to provide technical assistance to Hispanic business associations and entrepreneurs.11

Every year, the USHCC hosts a convention and business exposition. These conventions are the largest networking events for the Latina/o business community. The conventions always include business leaders, entrepreneurs, corporate executives, and federal and state elected officials. This year, during the 25 th annual convention, the Anna Maria Arias Hispanic Businesswomen’s Luncheon focused on the Anna Maria Arias Memorial Business Fund, a collaborative initiative between the USHCC, Latina magazine, and Wells Fargo, which supports Latina business ownership. The fund was created in memory of the late Anna Maria Arias, founder and publisher of Latina. The fund provides cash awards to outstanding Latina business owners throughout the country. To date, the fund has awarded $50,000 to Latina entrepreneurs. The photographs on the following page are from a photo gallery of this event (see figure 7).

In addition to the national organization, there are individual state Hispanic chambers of commerce. Wisconsin’s is located in Milwaukee. The Hispanic Chamber of Commerce of Wisconsin (HCCW) provides educational and technical resources in order to create, expand, and diversify small Latina/o-owned businesses in Wisconsin. Evelyn Arteaga, Graciela Rojas, and Lupita Montoto are active members of this organization. At the beginning of their entrepreneurial careers, the HCCW helped them acquire their businesses.

Evelyn Arteaga knows how hard it is to succeed as an entrepreneur. She began renting Mexican video tapes out of her home. Eventually, she decided to create a business plan. With her savings from her small home business, she opened her first storefront, Mundo Latino, a business that has now been running for six years. Arteaga works in her business ten hours a day, and then she does bookkeeping until 11:00 p.m. or midnight. She says, “You are a slave to your business; it is not easy. It takes a lot of effort and drive; however, having your own business has a lot of rewards.”13

Graciela Rojas, a new Latina entrepreneur in Madison, found out how difficult it was to live out the dream of running her own business; however, it came with rewards. Before acquiring her business, Rojas decided to attend a program for Latina/o entrepreneurs offered by Madison Area Technical College (MATC). She said that despite already having knowledge about how to run a bakery, she wanted to have some technical skills for opening and operating a business. She says, “With the combination of both the practical and educational knowledge, the business can succeed better.”14 With the help of the MATC program and a UW-Madison business counselor, Rojas incorporated her business and filed for permits. In November of last year, Rojas obtained a bank loan and was able to open her famous Sacramento Bakery to sell Mexican-style pastries.

Another Latina entrepreneur who serves as a role model in Madison is Lupita Montoto, the voice for local Latinos. Before incorporating La Movida, Montoto gained experience in a number of different venues. Upon moving to Madison in 1998, she and her husband decided to open a business in janitorial services. The business was successful; however, it was work that did not inspire her to expand the business. Montoto and her husband’s passion for music, public relations, and administration influenced them to work part-time on establishing a radio station. Then a Wisconsin radio company finally provided the opportunity for which they had been waiting and working. The company offered them one day a week on the air. However, Montoto and her husband’s dream was to have their radio station running twenty-four hours a day, seven days a week. She said that many companies told them that it would hard to obtain this level of access, but Montoto knew that it was not impossible. La Movida became so famous and admired for its wonderful service to the Madison community that, in April 2002, Mid-West Broadcasting, the largest owner of radio stations in Wisconsin, decided to offer its 1480-AM signal to Luis and Lupita Montoto. Since then, La Movida has been broadcasting in Madison as a full-time Latino radio station (see photo gallery).

Latina Entrepreneurs and Management

Another important aspect of the profile of Latina entrepreneurs is the way they run their businesses. Latina business owners use technology in their business at the same level as all women business owners (see figure 8). Many Latina-owned businesses also utilize the internet: 61 percent use the internet in their firms, and 38 percent use it on a regular basis. Businesses that are constantly on the internet tend to be younger, with Latina entrepreneurs owning them for just ten years on average. Internet usage also varies by industry, and the lead industries are finance and insurance (86% use the internet) and real state business services (83%). Of those Latina-owned businesses that utilize the internet, 49 percent have web site for their businesses.

For Evelyn Arteaga, Graciela Rojas, and Lupita Montoto, the use of technology in their businesses has not been difficult. When they opened their establishments, they installed adequate equipment that could offer security in administrating their businesses. The language barrier, on the other hand, was a major obstacle. When they opened their businesses, they were not proficient in English; however, they received support from the Anglo community that motivated them in improving their English communication skills.

Most Latina-owned firms are family-run. Family members are involved in the daily operations of three-quarters of Latina businesses. This rate is higher for Latina entrepreneurs in relation to female business owners of other ethnic groups (see figure 9). For example, the involvement of Graciela Rojas’s family in her business is an important factor for her success. She said in the interview, “Without the help of my husband, my son, and other family members, I would be getting crazy in this place.”

Many Latina entrepreneurs establish their businesses outside the home; however, Latina business owners are somewhat more likely than the average female entrepreneur to own a home-based business (see figure 10). These home-based businesses tend to be younger; for example, Evelyn Arteaga started her business at home so as to spend more time with her family. However, Arteaga realized that her stress level was higher because she was combining her professional life with her personal one. She concluded that it was not healthy for her or her family, so she installed her business in a storefront location that allowed her to organize her daily activities and meet her multiple responsibilities.16

Finally, cultural background also influences the development of Latina entrepreneurship in the wider business world. According to Juana Bordas’ book Follow the Leader: Women’s Ways of Mentoring, the Spanish word hispana means “being both a woman and Latin; it symbolizes that a woman cannot separate herself from her culture. Both are integral to her identity and permeate her whole being.”17 Entrepreneurship among Latinas, therefore, is a form of cultural expression, with family involvement and a sense of control over the future playing major roles. Most Latina entrepreneurs are proud of their cultural heritage and consider it an asset, though Latinas whose primary language is Spanish are more likely to see their culture as a challenge (see figure 11). Bilingualism is a form of cultural expression among Latina entrepreneurs. Language use by Latina business owners differs depending on how long they have resided in the U.S. For example, first-generation Latinas consider Spanish their first language, while second- and third-generation Latinas consider English their primary language. Many Latina entrepreneurs, regardless of age, agree that mentoring is a powerful tool for helping Latinas share information, learn integration skills, and manage cultural issues that affect their productivity at work and their overall success in business. In addition, people of diverse cultures, including Latinas, use entrepreneurial relationships to build bridges of understanding and to learn mutual respect for differences.

Latina entrepreneurs are part of our daily life. The Latina entrepreneurs in this study all demonstrated that the decision to start a business was not easy; however, these women did not let their fears stop them from succeeding. These women are good entrepreneurs who recognized risks and made great efforts to minimize them. I want to encourage all Latina entrepreneurs to keep maximizing their entrepreneurial power. They need our recognition and support because they are adding innovative ideas and multicultural elements to our nation’s economy. Their work shows a commitment to distributing wealth more fairly and managing resources more efficiently. Perhaps most importantly, their work contributes significantly to environmental, social, political, and economic equity.

1. Juana Bordas, Follow the Leader: Women’s Ways of Mentoring (Denver: The National Hispanic Leadership Institute, 1992), 42.
2. National Foundation for Women Business Owners, “The Spirit of Enterprise: Latina Entrepreneurs in the United States” ( Washington, D.C: Wells Fargo, 2000), 1-5.
3. Ibid.
4. Mark Fitzgerald, “Rompiendo Barreras,” American Demographics 25, no. 9 (November 2003): 38-43.
5. Barbara J. Robles, “Emergent Entrepreneurs: Latina-Owned Business in the Borderlands,” Texas Business Review ( Austin: Bureau of Business Research & McCombs School of Business, October 2004), 3.
6. Hispanic Chamber of Commerce of Wisconsin, “HCCW Newsletter – September 2004,” http://www.hccw.org.
7. Evelyn Arteaga, interview by author, Madison, Wisconsin, 27 October 2004.
8. Marcella De Simone, “Latina-Owned Business are a fast growing sector,” National Underwriter 106, no. 2 (January 2002): 12.
9. Center for Women’s Business Research, http//www.womensbusinessresearch.org.
10. Jesse Torres, “The Rise of Hispanic Business from 1980 to 1994,” CELCEE Kauffman Center for Entrepreneurial Leadership Education DIGEST 97:3 (April 1997).
11. The United States Hispanic Chamber of Commerce, http://www.ushcc.com.
12. Luis Salinas, photo gallery, “Anna Maria Arias Hispanic Businesswomen’s Luncheon 2004,” http://www.ushcc.com/25thConvention.html.
13. Evelyn Arteaga, interview by author, Madison, Wisconsin, 27 October 2004.
14. Graciela Rojas, interview by author, Madison, Wisconsin, 27 October 2004.
15. Ibid.
16. Evelyn Arteaga, interview.
17. Bordas, Follow the Leader, 2.

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