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Placida V. Gallegos

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3 Reasons Why Latinas Are Leaving Corporate America and Becoming Entrepreneurs

Posted: 03/27/2012 7:26 am

The statistics are remarkable and defy stereotypical notions about who Latinas are and the role we play in current U.S. society. Regardless of outdated and distorted perceptions about us as a group, the facts are incontrovertible.

For example:
788,000 Latinas now run their own businesses, according to the most recent Survey of Business Owners (last conducted in 2007). This represents a 46% increase against a 20% found across all female business owners over a five-year period. Their national background is Mexican (44%), Cuban (9%), and Puerto Rican (8%), also complemented by a myriad of Central and South American nationalities. In addition, the United States Hispanic Chamber of Commerce points out that:

  • Hispanic women-owned firms employ 18.5% of the workers in all Hispanic-owned firms and generate 16.3% of the sales
  • Latinas control 39 percent of the 1.4 million companies owned by minority women in the United States, which generate nearly 147 billion in sales
  • Four in ten minority women-owned firms are owned by Latinas

While these numbers tell part of the story, they do not explain what is behind these phenomenal growth rates. Equally compelling is the fact that Latinas are leaving corporate America in record numbers as well. What are the underlying dynamics that are impacting these patterns that can serve as lessons for organizations and for Latinas ourselves?

In my interviews with hundreds of Latina professionals over the past ten years, their stories begin to shed light on some possible explanations. The top three reasons that drive the growth in Latina businesses are:

  1. Wanting to have meaningful work and influence the course of their careers

  2. Willingness to do whatever it takes to achieve their goals

  3. Risk-takers with high degree of entrepreneurial spirit

When Latinas find themselves caught up in political maneuvering or cut-throat gamesmanship as they move up the corporate ladders, they ask themselves deep and provocative questions. They wonder about the costs and benefits of continuing to play the game. The benefits of the corporate lifestyle, which can involve inhumane working conditions and cost them precious time contributing to their communities and families, are weighed and sometime found lacking. Latinas are driven by their values of generous purpose and relational connection. When they find the gap between their day-to-day existence and their higher purpose, they may be more willing than others to take the leap of faith into the world of entrepreneurial exploration.

Not afraid of working hard and getting their hands dirty, Latinas are flexible in what they are willing to do to get the job done. Often coming from families where the immigrant perspective was a key influence, they learned early on that survival depended on each person contributing fully to the well-being of the collective. In that environment, being out for selfish gain and individual achievement alone was a recipe for disaster. The transition from such a community-oriented environment into the detached, individualistic culture of many organizations is not always motivating or engaging.

The stereotype of the passionate Latina has some basis in truth - we are a people that thrives on energy, excitement and enthusiasm! If we are forced to survive in a stark workplace that has a low tolerance for emotional expression and lacks a strong sense of connection, we tend to become anemic shadows of our true selves. Though willing to tolerate such an atmosphere temporarily, over time many Latinas begin looking elsewhere for ways to productively contribute their considerable creativity and precious life energy.

Latinas are also risk-takers. In this regard, we are willing to take calculated risks to explore possible avenues for greater fulfillment and financial and personal success. Having overcome barriers they faced as women in a patriarchal culture, many have learned how to thrive in foreign environments and make a way for ourselves. With such pioneering spirits, we are often unwilling to settle for good enough when the possibility for greater freedom and creativity is within reach.

Entrepreneurial spirit is in our DNA. Given that we have achieved more than our parents and more than we expected when we started out in our careers, our picture of success is different than for many other groups. Since we have had few role models for what we are doing in our careers, we have learned to make it up as we go along. Our goals are more flexible and broad than those whose pathways were laid out for them in their youth.

Smart organizations that have Latinas in their workforce would do well to heed lessons from the patterns we are describing. Latinas are loyal contributors to organizational success but they are also demanding meaningful work that engages their best talents and allows them to have a real impact consistent with their values. Leaders need to be sure to provide developmental opportunities that keep them engaged and challenged. It's also critical to pay attention to team and workplace culture to insure that there is a supportive and collaborative environment. This benefits all workers and contributes to employee engagement, but for Latinas in particular it makes all the difference between their staying or leaving. If you have an organizational culture that values entrepreneurial thinking and is open to innovation, Latinas are apt to thrive and find a wide range of avenues to add value. If not, more and more Latinas are making the move to starting their own businesses where they can see the results of their efforts and contribute to changing the world for the better!


 
 
 
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02:02 AM on 05/19/2012
This is, (hands down!), one of the best, richest, most insightful, greatest posts I have ever read! GREAT job in capturing the essence of Latinas professionals!!
09:39 PM on 04/07/2012
When the 2012 survey is done, we'll that number explode. Sign me another Latina business owner (LLC formed in 2010!)

Graciela Tiscareño-Sato
www.latinnovating.com
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Alex Nowrasteh
03:35 PM on 03/30/2012
The data used for this article is 5 years old. Anything more recent?
11:30 PM on 03/28/2012
Great article and let's not stop there... as Latina entrepreneurs, we need more visibility ONLINE so when someone searches "Latina" in the search engines, they see us as successful business owners (and not just eye candy). When I first launched a business coaching program online for Latinas in 2007, I discovered that most search terms using the word "Latina" were geared towards OTHER topics, not us in business.
11:24 PM on 03/28/2012
And we need more Latina entrepreneurs ONLINE making a difference in the search engine results that come up when you search "Latina". When i first ran a business coaching program for Latina entrepreneurs in 2007, I had a helluva time finding keywords for the site. "Latina" didn't exactly bring up images and sites having to do with the kind of business I was running.

So yes, let's get out there and now let's take a stronger stance ONLINE to change up those search engines and show the world what true Latinas are.
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Viper1st
multi quasi faceted
10:10 PM on 03/28/2012
Yes ~ Latinas are enterpreuneurial

Case in Point ~

http://www.adn.com/2011/08/25/2031423/illegal-immigrant-ex-officer-set.html
07:38 AM on 03/28/2012
I bet these business owners could make an awesome difference in Mexico.
01:42 AM on 03/28/2012
Jorge Castañeda's "Mañana Forever?" book has some positive words to say about the role of Mexican women in the United States.

"There seems to be little doubt that women constitute the Mexicans who are most radically transformed by their U.S. experience. Similarly, it is women migrants who register the most important changes in what are considered classic Mexican attitudes and conduct. Here is where Mexico will confront modernity directly, and emerge as a different people, or not. Because if these attitudes and behavior patterns (toward the law, savings, taking sides, making tough choices, the police, and collective action) are modified, the prime drivers and beneficiaries of this mutation will be the millions of Mexican women who have left their homes and taken advantage of their new surroundings to turn the tables and settle scores with the men in their lives: fathers, husbands, brothers, and sons.

Castaneda, Jorge G. (2011-05-17). Manana Forever? (Kindle Locations 5144-5149). Random House, Inc.. Kindle Edition. "

It goes on to bring up the radical risk a woman is taking when migrating, particularly when done by herself (sometimes with kids), and how having taken that risk, it adds an element of independence to the experience that it prepares them to enjoy gender equality more fully. Not everything is rose-colored, of course, but Castañeda seems to think it's actually key for a transformation of the Mexican psyche for the better.

Go chicas! :-)
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Trevor Neilson
Co-Founder, Global Philanthropy Group
09:33 PM on 03/27/2012
a great piece about one of America's greatest resources!
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Viper1st
multi quasi faceted
07:21 PM on 03/27/2012
I heard at the water-cooler ~ it was due to E-Verify
04:53 PM on 03/27/2012
What doesn't kill you, makes you stronger. We face so many challenges that it's kind of second-nature to be a risk-taker.
04:17 PM on 03/27/2012
I love this. Exactly. Connection, contribution, meaning...