Opinion: Investing in Latin American companies is good for the California economy, families and communities
A Hispanic small business owner. Courtesy Bank of America
Each year during this time—Hispanic Heritage Month—we celebrate together the economic, cultural, and social contributions of the Latino community to our nation. We also honor the hard work of generations past that have brought more opportunities to today’s Latino community.
With Latinos making up a third of San Diego’s population and a minority majority in California, it’s important that our diverse communities come together to help build a future where there are no barriers to success. At Bank of America, we strive to do our part to create financial equity and help build wealth in San Diego’s Latino communities.
We do this because as the Latino population grows, so does its impact on our economy.
According to a recent report released at the L’Attitude conference in San Diego, nationally, Latino wealth is growing at more than three times that of the overall population. If California’s Latino population were measured by gross domestic product, that economic output would have been $706.6 billion in 2018 – more than Ohio’s entire economic output.
This Bank of America-sponsored Latino GDP study for states and major metropolitan areas found that notable factors were driving this incredible growth in California. For example, the state’s Hispanic workforce grew nearly seven times faster than the non-Latino population, and the number of Latinos with at least a bachelor’s degree grew 2.5 times faster than non-Latinos between 2010 and 2018 .
While all of this is positive dynamics, more needs to be done to help ensure equity and access that is sustainable over the long term.
Investing in companies
Investing in Latino wealth means backing historically underserved entrepreneurs so they’re primed for success. Early-stage financing is critical for new business growth, especially when Latin American entrepreneurs still face gaps in financial and business literacy, funding, and networking opportunities. There is no justification for this.
As part of our commitment to advancing racial equality and economic opportunity in historically disadvantaged communities, we have invested $350 million to date in minority and women-led venture funds and in those that invest in minority and women-led businesses — including an early one Investment at L’Attitude Ventures of San Diego. Of the funds we have in our portfolio, one in four is led by Latino managers who provide capital that helps entrepreneurs and small business owners grow their businesses, create jobs and improve financial stability.
And what’s good for business can be good for families and communities. A majority (86%) of Latin American business owners are committed to building generational wealth through their business, according to a new Bank of America small business owner report. Community engagement is also a priority, with 88% of Latin American business owners saying they actively give back to their communities by taking actions such as: B. Donating products and services, volunteering and sponsoring local events and teams.
build career paths
An important element in creating opportunities for Latinos to thrive and build wealth, whether as business owners or employees, is ensuring that our educational institutions provide pathways to well-paying jobs and careers. Bank of America works with colleges and universities to create these pathways so students from disadvantaged backgrounds have an equal opportunity for professional success.
In San Diego, that includes a half-million-dollar investment in San Diego State University and Southwestern College as part of Bank of America’s Progresando initiative, which focuses on increasing Hispanic representation in health care professionals and addressing the shortage of culturally sensitive Spanish-speaking healthcare providers to address. The bank is also helping more Latinos enter the financial services sector through a local and statewide partnership with UnidosUs.
As a large employer, Bank of America also invests in local recruitment and career development for our own employees to help them thrive professionally here in San Diego. Our award-winning employee network, Hispanic/Latino Organization for Leadership and Advancement (HOLA), was established nearly 20 years ago to provide invaluable mentoring and career development for our Latino employees.
Supporting and honoring our 12 million Hispanic and Latino customers is not just a month-long initiative, it is a long-term, generational investment in America, and we are proud to invest in a stronger economy for our region, now and for years to come.
Julian Parra is Bank of America’s Business Banking Pacific Southwest Region Executive, based in San Diego.
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