How Latino Consumers and Local Businesses are Powering Economic Growth in Colorado

As Colorado’s economic landscape continues evolving, the thriving Latino community is one undeniable force driving its vitality. With a keen understanding of this demographic’s purchasing power and entrepreneurial spirit, local businesses are using innovative strategies to attract Latino consumers and cater to their diverse needs.

In recent years, Colorado has witnessed a demographic transformation, with the Latino population playing an increasingly pivotal role in driving economic activity and consumer trends. This demographic shift is not merely numerical but also cultural and economic, as Latinos contribute significantly to the state’s economic vibrancy through their entrepreneurial endeavors and consumer spending habits. Whether through culturally relevant marketing campaigns, bilingual customer service initiatives, or tailored product offerings, businesses are adapting to meet the evolving needs of Latino consumers and foster long-lasting relationships built on trust and mutual respect.

Latino Consumers Powering Colorado’s Growth

The economic influence of Colorado’s Latino community is undeniable, with their purchasing power significantly shaping the state’s economic landscape. Representing the second largest racial or ethnic group in Colorado, Latinos constitute 22% of the population. Notably, the median age of Latino Coloradans stands at 28 years old, compared to 36 for the state’s overall population. Moreover, Latino men exhibit the highest labor force participation rate at 79% among all racial and ethnic gender groups in Colorado. On a broader scale, the U.S. Latino economy is experiencing remarkable growth, reaching $3.2 trillion in 2021, up from $2.8 trillion the previous year, according to a recent report by the Latino Donor Collaborative in partnership with Wells Fargo. This economic expansion presents a lucrative market opportunity for businesses tapping into this thriving demographic segment.

Local Business Spotlight: Economic Resilience

Amidst this demographic shift, local businesses are embracing the challenge and opportunity of catering to Colorado’s diverse consumer base. Entrepreneurs recognize the importance of cultural sensitivity and inclusivity in their business strategies, from mom-andpop shops to burgeoning startups. By embracing multicultural marketing tactics and forging authentic connections with Latino consumers, these businesses drive sales and foster a sense of community and belonging.

Challenges and Opportunities

Despite the significant economic contributions of the Latino community, Hispanic-owned businesses in Colorado need help to establish their foothold in the competitive marketplace. Access to capital and navigating cultural nuances are among the many hurdles entrepreneurs face on their journey to success. Shockingly, Latino founders receive only 2% of total venture capital funding, as reported by Crunchbase. Moreover, according to the SLEI report, Latino-owned tech-centric businesses struggle to secure loans, receiving just 28% of the requested amount from local and 40% from national banks on average. Nonetheless, with the implementation of effective support systems, such as access to resources and
mentorship programs, the potential for growth and innovation among Latino entrepreneurs remains boundless.

Aligning Economic Development with Community Empowerment

As Colorado charts its course toward sustained economic development, it’s imperative that stakeholders across sectors recognize the symbiotic relationship between Latino consumers, local businesses, and overall prosperity. By investing in initiatives that support small business development, promote cultural entrepreneurship and foster workforce diversity, we can unlock the full potential of Colorado’s vibrant economy.

Local Insights

In a recent study conducted, key insights emerged regarding the economic impact of Latino
consumers and businesses in Colorado:

• Latino-owned businesses contribute over $800 billion to the U.S. economy, with a
  three-year growth rate of 8.7%.
• Between 2007 and 2022, Latino-owned businesses saw a remarkable 57% increase.
• The annual payroll of Latino-owned businesses has grown by an impressive 123%
  over the past 15 years.
• The Latino GDP is a formidable $3.2 trillion, with purchasing power exceeding $3.4
  trillion.
• Immigrant-owned Latino businesses have an average growth rate of 8.4%.
• Unity within the Latino community has surged from 14% to 48% over the past five
  years, as research at the World Economic Forum in Davos demonstrated.
• New businesses launched by Latinos accounted for a significant 36% of all business
  launches.
• Latino entrepreneurs have established five million businesses nationwide, generating
  over $800 billion in annual revenue.
  Conclusion
• As we look to the future, Colorado’s economic vibrancy hinges on our ability to embrace diversity, foster inclusivity, and harness the entrepreneurial spirit of all communities. We can build a more equitable and prosperous future for all Coloradans by championing Latino consumers and local businesses as catalysts for growth. Colorado is poised to chart a course toward a more vibrant, equitable, and resilient future by embracing diversity, fostering inclusion, and harnessing the full potential of Latino consumers and entrepreneurs