Latino Community Foundation Unveils New Research on Latino Entrepreneurship, Highlighting Untapped Economic Potential for the Nation

In partnership with Drexel University’s Nowak Metro Finance Lab and NALCAB, LCF’s groundbreaking reports revealing untapped potential of Latino entrepreneurs in California.

California’s economy, the fourth largest in the world, offers a glimpse of what’s possible for the United States: greater prosperity fueled by Latino entrepreneurs. But new research from the Latino Community Foundation (LCF) reveals the nation is leaving billions on the table by failing to invest in the very businesses driving local growth and job creation.

As National Small Business Week kicks off, the Latino Community Foundation (LCF) releases two new research reports developed in collaboration with national thought leaders: The California Procurement Playbook, produced in partnership with Drexel University’s Nowak Metro Finance Lab, and Investing in California’s Future: An Analysis of Latino-led CDFIs in California, developed with the National Association for Latino Community Asset Builders (NALCAB). Together, the reports spotlight the untapped economic potential of Latino-led small businesses and lay out a path for California and the nation.

“Latinos are twice as likely to start businesses, and Latinas are launching new businesses at six times the national average,” said Julián Castro, CEO of the Latino Community Foundation. “Yet our communities still face a sizable wealth gap and inequitable access to capital and scalable procurement opportunities. It is troubling that only two percent of federal contracts in California are performed by Latino-owned firms. These reports are also about more than numbers—they’re about ensuring that Latino families, entrepreneurs, and business owners have equitable access to the financial tools that create opportunity, promote scalability, and build generational wealth.”

“California recently surpassed Japan as the fourth largest economy in the world. This report shows that the state can soar even higher by investing in Latino-led CDFIs,” said Marla Bilonick, President and CEO of NALCAB. “We are grateful to the Latino Community Foundation for their partnership in elevating the strengths of Latino CDFIs and providing a vision for a more robust Latino CDFI presence in the Golden State. The economic power that Latinos generate for the United States is equal to the fifth largest economy in the world. It’s vital that we channel that strength within the CDFI industry to lift all of our communities.”

Key findings from Investing in California’s Future: An analysis of Latino-led CDFIs in California report include:

• Latinos make up 40% of California’s population but lead only 15% of the state’s CDFIs.
• Latino-led CDFIs are more likely to serve Latino clients and offer culturally relevant services, including technical assistance and microloans.
• Latino-led CDFIs are mostly based in urban areas, while many rural counties with large Latino populations have little to no access to these resources.
• Latino-led CDFIs, especially in California, rely less on government and bank loans. They use more flexible and community-centered funding approaches.

The California Procurement Playbook is a first-of-its-kind analysis of how Latino-owned businesses in California are faring in the federal procurement economy—and how much opportunity remains untapped.

“California—home to the nation’s fourth-largest economy and more than 80,000 Latino-owned employer firms—offers a powerful opportunity to grow local and diverse businesses through procurement,” said Bruce Katz, Director of the Nowak Metro Finance Lab at Drexel University. “But to truly scale these businesses, we need a firm-first approach. The California Procurement Playbook outlines a bold strategy centered on supplier development and access to capital—key investments that can unlock the full potential of Latino-owned firms. A thriving, competitive economy depends on opening up procurement opportunities to small and local businesses, not just long-standing incumbents. I applaud the Latino Community Foundation for spearheading this effort to build a more inclusive and innovative economy from the ground up.”

Key findings from the California Procurement Playbook include:

• Latino-owned businesses capture only 2% of federal contracts in California, despite being 11.4% of employer firms and 40% of the state’s population.
• Nearly 2,900 Latino firms are registered to compete for federal contracts but have never won one.
• Construction, security, aerospace manufacturing, and architectural services are all ripe for greater Latino participation.
• Language access, limited capital, and lack of ecosystem coordination prevent many firms from scaling.

To download the full reports and explore how the Latino Community Foundation is advancing economic justice for Latino entrepreneurs, visit: latinocf.org.

About Latino Community Foundation

The Latino Community Foundation (LCF) strives to unleash the civic and economic power of Latinos in California and beyond. Through nationally recognized programs like the Latino Nonprofit Accelerator and the Latino Giving Circle Network, LCF transforms philanthropy by centering trust, relationships, and community. From economic justice to civic leadership, LCF is building a future where Latinos lead with love and strength—and where no one is left behind. Learn more by visiting latinocf.org.

About NALCAB

NALCAB is a one-of-a kind CDFI intermediary with 200+ member CDFI and economic development nonprofit member organizations that are working to maximize the economic contributions of the Latino population to the U.S. economy. Our presence extends to all 50 states, DC and Puerto Rico. Learn more at nalcab.org

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506581293/en/