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Demography & Population Studies

UCLA LPPI Study Highlights Surge of Latine-Owned Microbusinesses During COVID-19 Pandemic

Contributors

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Rosario Majano Staff
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Rommel Mendoza Fellows

The study draws from the U.S. Census Bureau to analyze the trends in microbusiness ownership—firms with fewer than 10 employees—providing a detailed view of the growth and challenges facing Latine microentrepreneurs during the 2020 economic downturn.

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Contact: lppipress@luskin.ucla.edu

UCLA LPPI Study Highlights Surge of Latine-Owned Microbusinesses During COVID-19 Pandemic
Latina entrepreneurs in California excel in the microbusiness space across industries

LOS ANGELES (November 20, 2024) –  The UCLA Latino Policy and Politics Institute released a new data brief that reveals a remarkable increase in Latine-owned microbusinesses during the COVID-19 pandemic, with growth mainly driven by Latinas across California. This data brief is a part of The Economic Recovery and Entrepreneurship Project (TEREP), a partner project with the UCLA Center for Neighborhood Knowledge.

The study draws from the U.S. Census Bureau to analyze the trends in microbusiness ownership—firms with fewer than 10 employees—providing a detailed view of the growth and challenges facing Latine microentrepreneurs during the 2020 economic downturn.

The brief found that despite the pandemic recession, Latine-owned microbusinesses outpaced the growth rates of microbusinesses owned by other racial and ethnic groups in 2020.

“While we found encouraging trends, particularly for Latina entrepreneurs, the lack of demographic data collection limits our ability to fully understand microbusiness owners,” said co-author and research analyst Rosario Majano. “Expanding data collection within Census surveys or designing specific surveys for microbusinesses could help fill the gaps in understanding this segment’s demographic characteristics, needs, and contributions.”

Additional key findings about microbusinesses in California include:

  • Between 2019 and 2020, the number of microbusinesses with five to nine employees that were equally Latino- and Latina-owned or fully Latina-owned experienced the largest increase (23% and 22%, respectively) in California.
  • Bakersfield, Fresno, Riverside, and Oxnard MSAs saw growth in Latino-owned nonemployer microbusinesses.
  • San Diego recorded the highest growth in Latino-owned firms with five to nine employees, at 58%.
  • Latine-owned businesses in the accommodation and food services and administrative and support industries exhibited the most consistent growth across microfirms of different sizes.

Co-author Rommel Mendoza, policy fellow at UCLA LPPI, added, “In the Central Valley and beyond, Latine-owned microbusinesses represent resilience and adaptability. These ventures became vital sources of income in communities hit hardest by the economy during the pandemic.”

Read the full data brief here. 

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About UCLA Latino Policy and Politics Institute:

The UCLA Latino Policy and Politics Institute is a non-partisan research institute that seeks to inform, engage, and empower Latinos through innovative research and policy analysis. LPPI aims to promote equitable and inclusive policies that address the needs of the Latino community and advance social justice. 44.245.141.20.