Celebrating entrepreneurs in the Hispanic community

Hispanic Heritage Month, celebrated from Sept. 15 - Oct. 15, is a time to recognize the invaluable contributions of Hispanic and Latino Americans to our nation's culture and economy. It is an occasion to not only commemorate the rich traditions, histories and achievements of our vibrant community; it's also an opportunity to shed light on the challenges faced by Hispanic small business owners and the pivotal role accountants play in their success.

Rapid growth amid challenges: Access to capital and cash flow for the small business owner is becoming an increasingly larger challenge given market conditions and shifting interest rates. Hispanic small business owners encounter these same challenges, but also face additional hurdles when seeking access to financing. These barriers include limited access, language barriers and credit history challenges. Discrimination also persists, making it harder for Hispanic and other minority entrepreneurs to secure loans or investments compared to the majority.

According to Biz2Credit’s Annual Latino-Owned Business Study for 2023, the average overall approved funding amount in 2022-23 for Latino-owned businesses was $20.5K less than the average approved amount for non-Latino-owned companies. This same report cites that average revenues and earnings of Latino-owned companies rose in the last year. With the SBA indicating there are nearly 5 million Latino-owned businesses in the U.S. contributing more than $800 billion to the American economy each year, Hispanics represent the fastest-growing segment of U.S. small businesses. And like any small business owner, they need accounting and advisory support.

The role of accountants: Accountants are essential allies for Hispanic and Latino-owned businesses. They provide crucial guidance to their clients across a spectrum of services that covers more than just simple tax prep or accounting. Those serving the Hispanic community are finding new ways to support their clients through a variety of advisory services, often in the form of navigating complex immigration laws, regulatory changes and supporting their clients’ need for cash flow. Their expertise ensures that businesses stay compliant and financially healthy, and many times this expertise must transcend English and Spanish.

How fintech and financing advisory can open new doors: With that in mind, as accountants and advisors who serve small businesses, including minority-owned businesses, you should evaluate new opportunities to deliver client value and enhance your firm’s reputation. Fintech solutions are revolutionizing the accounting profession, making it easier for accountants to support their small business clients. In addition to automating repetitive tasks, streamlining financial processes and enhancing data accuracy, innovative accountants are leveraging fintech to deliver unprecedented access to business financing for their clients.

We spoke with Grace Williams, CEO and President of Grace Williams CPA PC, who shared her story about using the CPA Business Funding Portal and described why helping her clients gain access to capital is so important to her. “The opportunity that we have had to help our clients with their loan needs has made a closer connection with the client,” said Williams. “It allows us to better understand the client. I’m able to learn so much about the client and their operations which allows me to provide them with other services like outsourced CFO services because they decided that thanks to our loan services, they’re opening new lines of businesses and need more support.”

Hispanic Heritage Month is a time to honor the invaluable contributions of Hispanic small business owners on our communities, but we can’t do so without also recognizing the unique challenges they face. We also cannot limit this focus to one month a year. Accountants play a crucial role in supporting Hispanic entrepreneurs, and fintech solutions are helping them overcome obstacles and reach their goals throughout the year to create a more prosperous future for all.

About the author: Jeremiah LaRue is a senior product marketing manager at CPA.com. He has more than a decade of experience supporting the accounting profession as a consultant, product manager and product marketer helping lead firms through organizational change and technology transformation.