Last week I attended the Stanford Latino Entrepreneurship Initiative (SLEI) summit—an event centered around the 2024 State of Latino Entrepreneurship report; a research effort led by the Stanford Graduate School of Business in collaboration with the Latino Business Action Network (LBAN). The report provides deep insights into the performance, challenges, and opportunities of Latino-owned businesses in the U.S.—from growth and profitability metrics to financing access, innovation trends, and employment practices.

I listened to the powerful results of the study, the stories of Latino entrepreneurs, and the exchange of ideas among the Latino experts invited to the event. But amidst the powerful statistics and inspiring reflections, one thought kept echoing in my mind:

We have a gap. A big one.

The more I listened, the clearer it became: According to SLEI’s research and the LDC U.S. Latino GDP report, the Latino business community is a tremendous force in the U.S. economy, reaching a GDP of $3.6 trillion in 2022—ranking as the fifth-largest economy globally—and growing at an average of 4.6% annually from 2017–2022, 2.6 times faster than the rest of the economy. The growth, innovation, and resilience reflected in the report speak for themselves. And yet, there seems to be a disconnect between what the data shows and how Latino-owned businesses (LOBs) are still perceived, engaged, and supported.

It’s time we mind the gap.

The Gap No One Talks About

The Stanford 2024 State of Latino Entrepreneurship report is filled with data points that should make anyone sit up and pay attention. The number of LOBs grew by 44% over the past five years, while the number of non-LOBs declined by 3% during the same period. In the wake of the pandemic, LOBs rebounded faster and stronger, with 84% now operating profitably, compared to 75% of their counterparts.

They’re also more likely to offer employee development programs (45% vs. 32%), lead in sustainability practices (37% vs. 25%), and adopt AI tools at higher rates (28% vs. 20%).

These aren’t just small businesses making ends meet—they are dynamic, resilient, and entrepreneurial engines of economic growth. A vibrant part of the U.S. economy.

And yet… we don’t talk about them that way. At least not in the headlines.

How can a segment that contributes so much still remain, in many ways, invisible in the broader narrative?

This is the gap no one talks about. A gap in recognition. A gap in narrative. And most importantly, a gap in understanding—of what these businesses are, what they represent, and what they need to reach their full potential.

A Deeper Gap: Strategy and Growth

The report also highlights a persistent revenue gap between LOBs and their counterparts. From 2018 to 2023, Latino-owned businesses showed a cumulative average growth rate in revenue per firm of just 1.4%, compared to 7.6% among their counterparts. This, combined with findings from the LDC U.S. Latino GDP report—showing that the vast majority of LOBs are small businesses employing fewer than 50 people—points to a deeper issue.

Why are LOBs still lagging in growth, both in size and revenue?

And while the State of Latino Entrepreneurship study rightly highlights factors such as limited access to financing and the lack of guidance or experience to navigate complex commercial, compliance, and procurement systems, I couldn’t help but wonder if the revenue gap also points to something less visible—but equally important: a gap in strategic intent.

Because growth is not just the outcome of favorable conditions. Growth is a decision—one that requires clarity, intention, and a deep understanding of both opportunities and constraints.

Latino-owned businesses are already doing many things right. The data shows they lead in sustainability practices, employee development, and AI adoption. The report highlights companies like Global4PL, GreenTek Solutions, and Continuous Solutions as examples—businesses that are building profitable, future-oriented operations while staying deeply rooted in their values.

And beyond the data, they bring qualities that don’t show up in metrics: cultural richness, resilience, community-centered thinking, and a kind of grit that can’t be taught. These are tremendous sources of pride. And more than that, they are potential competitive advantages—if channeled through the right strategic lens.

But growth also requires navigating challenges that are often structural—and sometimes internal too: hesitation around scaling, lack of strategic clarity, difficulty prioritizing among competing opportunities, limited decision-making frameworks, and reliance on familiar playbooks that don’t stretch far enough. Without a clear strategic intent, it’s easy to get caught in the day-to-day, missing the chance to design a path forward with purpose.

This is where thoughtful strategy comes in. Not a one-size-fits-all roadmap. Not a borrowed framework from someone else’s journey. But a strategy built with care—one that starts by listening, respects context, and treats culture not as a footnote, but as the foundation.

Because when it comes to growth, strategy only works if it fits.

Let’s Mind This Gap—Intentionally

If Latino-owned businesses achieved the same average revenue as their counterparts, the U.S. economy would gain an estimated $1.1 trillion. That’s not a footnote—it’s a national opportunity.

This Stanford Latino Entrepreneurship Initiative, and the growing body of work behind it, is part of a powerful movement—a collective effort across institutions, entrepreneurs, advocates, and researchers who are working to shift the narrative, unlock access, and elevate the visibility of Latino-owned businesses in the U.S. These efforts matter. They are reshaping ecosystems, opening doors, and reframing what’s possible.

But there’s another lens we must also keep in focus: the internal one.

Beyond the systems and supports that need to evolve, there is also an internal sphere—within each Latino-owned business—where the gap can be mindfully addressed. That space is strategy. And it’s within reach.

Minding the gap internally means developing the strategic capabilities that allow a business to grow on its own terms, to achieve its own ambition, with its own voice and vision. That includes the ability to:

• Develop greater awareness of both internal strengths and external opportunities—looking beyond the obvious and challenging assumptions.

• Build clarity around a growth ambition, ensuring that decisions, priorities, and resources move in the same direction.

• Make bold, intentional choices that reflect long-term goals rather than solely short-term fixes—choosing where to play and how to win.

• Create discipline through systems, structure, and habits that allow the strategy to be executed consistently and sustainably.

Because growth doesn’t happen by chance. It takes intention, discipline, and a strategy rooted in who you are.

Only then will we start closing the gap—from within.

Ximena Jimenez

Founder – Managing Director LITup

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