Funding Constraints for Latino Business Start-Ups

This study focusses on the high growth of Latino-owned businesses (LOBs) in United States during last two decades and constraints these face their start-up development stages. During this period, number LOBs increased faster than owned by other racial ethnic groups. The also addresses following aspects Latino business ownership: 1) main reasons U.S. Latinos decide to become owners; 2) reluctance seek loans from formal financial markets; 3) internal external factors that limit owner participation markets, 4) banks institutions when working with businesspeople. We found important gaps access credit between comparison groups: i) Equally-Latino & non-Latino firms ii) White-owned businesses.