If you are looking to make it in today's economy, creating a small business is one of the best ways to do so. Perhaps no group has seized on this path more effectively than Latinos. The Latino population has continued to grow; according to the U.S. Census Bureau, as of July 1, 2016, Hispanics and Latino Americans constituted 17.8% of the entire United States population. These individuals are creating businesses to build their lives -- businesses that create opportunities not only for themselves but for the payment processing industry as well. ISOs and agents, take notice! This is a prime opportunity for growth.
Growth of Latino Entrepreneurs
Latino or Hispanic-owned businesses contribute over $700 billion to the United States economy every year, and that number will only continue to grow as the population expands and businesses mature. Rather than depending on others to support them, this population is thriving on the opportunities they can create themselves.
Of course, part of the ability to create is the support available to them. Today, federal, state, and local programs help Latino entrepreneurs navigate the requirements of forming and building a business, opening doors for more people to follow their dreams. Still, they need to find, take on, and pursue the opportunities available. This includes raising the capital they need and building the infrastructure necessary to create and grow the business.
Overcoming Credit Difficulties
One of the biggest struggles involved in building a business can be access to credit. The average Latino credit score is still below 600, which can limit the ability to access the services needed. Low credit scores and too recent a credit history can scare banks away from lending or offering payment services for businesses. This can be one of the greatest impediments to building a new business, for a Latino or anyone else facing similar credit concerns.
Community support and government programs can help with some of this: building credit scores, navigating the legal and regulatory requirements, and other baseline elements of building a business. Even once the business is set up, though, you need to be able to take and process payments. Approval for a payment processing system typically runs through the same large financial institutions that create roadblocks for initial funding. A start-up does not come with a strong payment history, so banks are looking to mitigate risks in a way that makes it hard to get started.
Creating the Path to Success
A key to succeeding as an entrepreneur is to respond to inevitable challenges, as they arise. For Latinos and Hispanics building a business, numerous options exist. However, some research and homework on how to file to create a company, and to set up the proper infrastructure, are required. A payment processing system that empowers merchants to accept credit cards and other forms of payment from customers is critical. This is a prime opportunity for independent sales organizations and merchant level resellers to deliver this important part of the business setup, for a successful and profitable venture.