Case Study: Ensuring capital readiness for rural Hispanic companies by the El Paso Hispanic Chamber of Commerce

 Case Study: Ensuring capital readiness for rural Hispanic companies by the El Paso Hispanic Chamber of Commerce

The Just Economy Solutions Hub is home to this showcase of NCRC member work. VisitNCRC.org/solutions to learn more!

The goal of NCRC is to investigate the effects of technical assistance and small business education models that foster the expansion of firms run by individuals of color. Block, Inc. With assistance from the NCRC, small business education models were established in the areas of market access via procurement for black-owned enterprises, community capital resource navigation for Hispanic immigrants, especially entrepreneurship incubation among women owners of color.

The results of this effort are available on the Just Economy Solutions Hub, which was created to exchange information, tools, and innovative techniques that may support and enhance the environment for entrepreneurship.

guiding rural Hispanic business owners in selecting the right funding sources for expansion

Record-high rise in Hispanic business owners

Latino-owned companies (LOBs) are the fastest growing component of the U.S. business community and are emerging as a significant economic engine, according to the annual State of Latino Entrepreneurship study. When it comes to the number of firms and income, LOBs have recently surpassed the growth rates of both white-owned businesses (WOBs) and American businesses overall. For instance, there was a 7% decrease in WOBs and a 34% rise in LOBs between 2007 and 2019. The aggregate yearly payroll of LOBs increased twice as quickly over that time period as that of white-owned companies. Lately, from 20% in 2020 to 38% in 2022, the proportion of Latino-owned companies reporting business-to-business sales than quadrupled. In general, around 25% of LOBs questioned said that their performance has improved since the epidemic began. with less than 5% of companies owned by white people.

Capital Resource Navigation for Capital Preparation

In 2022, one in three Latino-owned companies will need funding, thus having access to money is essential to making sure both new and current businesses prosper. Access-to-capital models are being supported by communities and resource providers, which facilitates the process for these enterprises to identify and secure the necessary funds for expansion. This includes improvements to the current "hub and spoke" resource models.

The hub and spoke model, as described by the Small Business Administration (SBA), centers a main nonprofit organization, or "hub," on a network of trustworthy "spoke" organizations that collaborate with companies in specific areas. Send out messengers. In order to better link company owners in selected areas with essential services and support programs, these networks combine the business development skills of the central hub organization with the community credibility of the partner organization.

Based on a hub and spoke model, the United States Hispanic Chamber of Commerce was given the opportunity to participate in one of eight SBA Community Navigator pilot initiatives in 2022. One of the five partners charged with giving firms within their service region technical help is the El Paso Hispanic Chamber of Commerce (EPHCC). EPHCC gives businesses the tools they need to achieve their goals by utilizing already-existing programs and resources, collaborating with the SBA, and offering financial packaging assistance, technical support to contractors regarding small business certifications, marketing as well as outreach information, virtual training, as well as business referrals. It incorporates on-the-road training to meet with companies in their service area and mobile business consultancy.

Program for Community Navigators by the El Paso Hispanic Chamber

With data, engagement, and relationship building as its guiding principles, the El Paso Hispanic Chamber of Commerce's (EPHCC) purpose is to be a premier business resource and a leading champion for the development of the El Paso Border Metroplex. Through its Community Navigator pilot program, companies now have more opportunity to connect with the resources they need to succeed.

Taking Up the Challenge:

Small firms encounter intricate and systemic obstacles when trying to get funding. The COVID-19 epidemic has highlighted structural hurdles, prompting stakeholders to reassess their approaches to funding and helping small firms that face disadvantages. Small company loan access is influenced by ethnic and socioeconomic factors, and Hispanics are no strangers to access hurdles.

Traditional banks do not have a connection with Hispanic businesses. Merely 11% out of 1,500 participants in a US Office of Economic Development poll reported having a link with a conventional bank. Language and cultural challenges are keeping Hispanic business owners from obtaining financial financing. The translation of financial service resources is necessary for around 84% of the city's small companies.

It is important to address the requirements of Hispanic entrepreneurs. Case Study: Ensuring capital readiness for rural Hispanic companies by the El Paso Hispanic Chamber of Commerce

The Just Economy Solutions Hub is home to this showcase of NCRC member work. VisitNCRC.org/solutions to learn more!

The goal of NCRC is to investigate the effects of technical assistance and small business education models that foster the expansion of firms run by individuals of color. Block, Inc. With assistance from the NCRC, small business education models were established in the areas of market access via procurement for black-owned enterprises, community capital resource navigation for Hispanic immigrants, as well as entrepreneurship development among women owners of color.

The results of this effort are available on the Just Economy Solutions Hub, which was created to exchange information, tools, and innovative techniques that may support and enhance the environment for entrepreneurship.

guiding rural Hispanic business owners in selecting the right funding sources for expansion

Record-high rise in Hispanic business owners

Latino-owned companies (LOBs) are the fastest growing component of the U.S. business community and are emerging as a significant economic engine, according to the annual State of Latino Entrepreneurship study. When it comes to the number of firms and income, LOBs have recently surpassed the growth rates of both white-owned businesses (WOBs) and American businesses overall. For instance, there was a 7% decrease in WOBs and a 34% rise in LOBs between 2007 and 2019. The aggregate yearly payroll of LOBs increased twice as quickly over that time period as that of white-owned companies. Lately, from 20% in 2020 to 38% in 2022, the proportion of Latino-owned companies reporting business-to-business sales than quadrupled. In general, around 25% of LOBs questioned said that their performance has improved since the epidemic began. with less than 5% of companies owned by white people.

Capital Resource Navigation for Capital Preparation

In 2022, one in three Latino-owned companies will need funding, thus having access to money is essential to making sure both new and current businesses prosper. Access-to-capital models are being supported by communities and resource providers, which facilitates the process for these enterprises to identify and secure the necessary funds for expansion. This includes improvements to the current "hub and spoke" resource models.

The hub and spoke model, as described by the Small Business Administration (SBA), centers a main nonprofit organization, or "hub," on a network of trustworthy "spoke" organizations that collaborate with companies in specific areas. Send out messengers. In order to better link company owners in selected areas with essential services and support programs, these networks combine the business development skills of the central hub organization with the community credibility of the partner organization.

Based on a hub and spoke model, the United States Hispanic Chamber of Commerce was given the opportunity to participate in one of eight SBA Community Navigator pilot initiatives in 2022. One of the five partners charged with giving firms within their service region technical help is the El Paso Hispanic Chamber of Commerce (EPHCC). EPHCC gives businesses the tools they need to achieve their goals by utilizing already-existing programs and resources, collaborating with the SBA, and offering financial packaging assistance, technical support to contractors regarding small business certifications, marketing and outreach information, virtual training, along with business referrals. It also includes on-the-road training to meet with companies in their service area and mobile business consultancy.

Program for Community Navigators by the El Paso Hispanic Chamber

With data, engagement, and relationship building as its guiding principles, the El Paso Hispanic Chamber of Commerce's (EPHCC) purpose is to be a premier business resource and a leading champion for the development of the El Paso Border Metroplex. Through its Community Navigator pilot program, companies now have more opportunity to connect with the resources they need to succeed.

Taking Up the Challenge:

Small firms encounter intricate and systemic obstacles when trying to get funding. The COVID-19 epidemic has highlighted structural hurdles, prompting stakeholders to reassess their approaches to funding and helping small firms that face disadvantages. Small company loan access is influenced by ethnic and socioeconomic factors, and Hispanics are no strangers to access hurdles.

Traditional banks do not have a connection with Hispanic businesses. Merely 11% out of 1,500 participants in a US Office of Economic Development poll reported having a link with a conventional bank. Language and cultural challenges are keeping Hispanic business owners from obtaining financial financing. The translation of financial service resources is necessary for around 84% of the city's small companies.

It is important to address the requirements of Hispanic entrepreneurs.