Supporting Latino Entrepreneurs Amidst Policy-Driven Economic Instability

Latino entrepreneurs in the United States are starting new businesses and expanding existing businesses in record numbers. Between 2017 and 2022, Latino-owned employer businesses (those that employ at least one person) grew in nearly 90% of U.S. metro areas (Map 1). In 2022 alone, more than 465,000 Latino-owned employer firms employed over 3.5 million people and generated over $653 billion in total revenue. Their contributions to jobs, wages, and revenue are vital to local and national prosperity, and supporting Latino entrepreneurs is particularly important in this moment due to new barriers facing them.

Yet this growth is unfolding amid a policy-driven economic crisis. Sudden changes in trade, immigration, and federal programs are creating whiplash for the entrepreneurs and communities that form the backbone of America’s local economies. When tariffs change month to month, when immigration raids empty entire business corridors overnight, and when long-standing federal contracting and credit programs are dismantled, small firms—especially Latino-owned ones—are left to absorb shocks with little warning or support. These policy swings can upend payrolls, leases, and hiring plans as abruptly as a natural disaster.

That is why we should treat this moment as both an emergency and an inflection point. Like disaster-preparedness systems that help cities recover after hurricanes or wildfires, the U.S. needs stronger economic resilience infrastructure to help local businesses weather policy-made crises. Latino entrepreneurs have shown extraordinary persistence and creativity through past disruptions, but resilience should not rely on grit alone.

This report on supporting Latino entrepreneurs traces how policy volatility erodes stability, how geography shapes exposure to these shocks, and what states, cities, philanthropy, and the private sector can do to respond. Some actions can offer immediate relief, such as helping businesses survive the next disruption, while others can build the foundation for long-term resilience and growth.

When Latino-owned businesses are destabilized, the fallout reaches far beyond their communities. These are American firms that anchor local supply chains, drive innovation, and generate jobs nationwide. Strengthening their stability strengthens the entire U.S. economy.