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A UCLA study shows that Latino-owned businesses are moving in an upward trajectory: there’s been a 3.43% increase in growth between 1997 and 2002, with $35 billion in sales generated in 2002.

The study points to some strengths and weaknesses of Latino businesses, which occupy the largest percent of minority-owned businesses and therefore make a greater impact on the regional economy.

“Latino firms are in critical sectors of the economy, both traditional sectors that need to remain strong and entering new sectors like the green jobs sectors that are going to grow the regional economy,” said [Dr. J.R. DeShazo, Director of the Lewis Center in the UCLA School of Public Affairs].

One strength: Latino-businesses are more likely to offer a higher return on investment. One weakness: the Latino business sector lacks technical and banking assistance, which are both key to a business’s long-term growth. Latino businesses tend to be underserved by banking institutions and are more vulnerable when making banking decisions.

The study calls for more policy advocacy for Latino businesses.

While Latino political engagement has increased over the last decade, Latinos have not done as much in advocating for its business community, according to DeShazo. The lack of time and resources, as well as the lack of access to business associations in the region may be factors in the current state of Latino business people’s civic engagement, he says. “One of the most important things we can do as an organization is policy advocacy,” DeShazo said.

To read the full article and more about the study’s recommendations, click here.