Hispanic women face unique challenges and opportunities in the entrepreneurial landscape. The COVID-19 pandemic significantly impacted Hispanic women-owned businesses, with closures occurring at twice the rate of those owned by Hispanic men—30% versus 16%. Labor shortages and restrictions hit major industries such as restaurants, food service, and hospitality particularly hard. Despite these setbacks, many Hispanic women are leaving traditional workplaces to start their own businesses, driven by life changes, outdated workplace policies, and passion projects. This trend presents both challenges and opportunities for these entrepreneurs.

Navigating Labor Market Shifts

The pandemic has accelerated changes in the labor market, with a significant shift towards contingent labor. Nearly 60% of companies in industries like construction, retail, utilities, services, transportation, and communications are expected to rely on contingent workers this year. For Hispanic women looking to start their own businesses, one strategy is to become an independent contractor or supplier to their former employers. Another approach is to consider how their services or products can be adapted to meet the needs of top-trending industries. Whether starting a larger business that services other businesses (B2B) or becoming a solopreneur providing services directly to consumers (B2C), identifying underserved industries and trades can offer new opportunities.

Exploring Underserved Industries

Underserved industries such as trucking, waste management, and home repairs are in dire need of labor and service provision. Few women consider these fields, yet they present significant opportunities. Hispanic women entrepreneurs can fill these labor gaps by working as independent contractors, starting staffing companies to outsource the work, or hiring labor and taking on projects as direct providers. By thinking creatively and exploring these non-traditional fields, Hispanic women can carve out successful niches for their businesses.

The Importance of Certification

Differentiation is crucial for startups, especially those owned by Hispanic women. Obtaining certifications as a woman- or Hispanic-owned business can be key differentiators when competing for bids or projects. Professional certifications can be particularly important in high-demand trades or industries not typically served by women, such as environmental health and safety, construction, or mechanical engineering. Certification adds a level of visibility and trust in a business’s services, making it easier to secure contracts and build a solid reputation.

Showcasing Hispanic Women-Owned Businesses

To successfully start and scale a Hispanic woman-owned business, several strategies can be employed to showcase the business and attract more customers:

  1. Leverage Former Employer Relationships: If losing a job, consider asking the company to retain services as an independent contractor and understand the requirements for such a transition.
  2. Follow SBA Guidelines: The Small Business Administration (SBA) provides basic steps for starting a business, which can serve as a valuable resource.
  3. Ensure Compliance: Some trades and industries require specific licenses, insurance, and certifications. Checking with the Division of Corporations section of the state website can help ensure compliance.
  4. Seek Government Contracts: Government agencies and corporations often have budgets and projects earmarked for certified women-owned companies. The U.S. government, one of the nation’s largest buyers of goods and services, has increased contracting spending on small, disadvantaged businesses by 50% over the next five years.

Despite the challenges faced by Hispanic women entrepreneurs, there are numerous strategies and opportunities to overcome these hurdles and build successful businesses. By navigating labor market shifts, exploring underserved industries, obtaining necessary certifications, and effectively showcasing their businesses, Hispanic women can thrive in the entrepreneurial landscape.