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¡Punto Final!

It is clear that the face of small business is changing and it is becoming more and more Latina!


It is truly an honor to be the first Latina to ever serve as Chair of a full congressional committee. This is an indication of our increasing presence in the United States, and the strides that Latinas are making across the country.

Ever since I was a little girl, I have recognized the vital role small businesses play in our local communities, and in our economy. When I was elected to Congress in 1992, the first assignment I requested was the Small Business Committee, and in 1998 I was elected to serve as the Ranking Democratic Member. During that time, I proudly worked to better the environment for this nation’s 26 million small businesses, including the more than half-million Latinas who, as small business owners, are driving economic growth in this country.

Over the next two years, as Chairwoman, I believe we have a tremendous opportunity to make improvements, and to shape policies, that will greatly benefit Latina entrepreneurs so they can continue their progress as the main innovators and economic engines of this country.

Across the country, Latina entrepreneurship is exploding. From 1997 to 2002, Hispanic women-owned business ownership increased by a phenomenal 22.3 percent. Latinas alone are responsible for nearly 96 percent of the increase in women-owned businesses during that time, illustrating their outstanding dominance and contributions to the U.S. economy. I will work to ensure that even more Hispanic women are able to start and expand a successful venture, joining these proud women who are helping to drive our economy.

To do this, we must first start by addressing some of the most pressing issues that Latina businesses face today. If Congress tackles one issue this year, it has to be the rising costs of health insurance. These rising costs pose a serious obstacle to the success of this nation’s small businesses. Health care premiums for small business owners have gone up by nearly 80 percent since 2000. This is causing a serious problem for Latina business owners, who according to the National Council of La Raza, are the least likely of all women employers to offer health insurance. But there are plans in the pipeline to change this – the new leadership in Congress is committed to reversing this trend. Over the next year, we will be working to pass legislation that will ensure Latina businesses can offer affordable health care to their employees. We need to reform the system to increase the options for small businesses, reduce administrative costs, as well as reward employers who offer coverage, so Latina businesses can move forward with their business ventures.

It is clear today that Latina entrepreneurs are starting businesses at phenomenal rates. This is despite the fact that Latina businesses are struggling to access capital, and are receiving smaller loans in comparison to other small firms. The average SBA 7(a) loan size in 2005 was $157,000; yet the average for a Hispanic-owned firm was only $123,000. So, if you consider what Latina businesses have already done in spite of this discrepancy, just imagine what they could do if Latina businesses were infused with even more capital. That is what my colleagues and I will be working to do – by looking at ways to lower the cost of capital for small firms, and opening up more opportunities for entrepreneurs to receive capital. Doing so is one way to guarantee Latina businesses have ample access to the capital they need in the future – whether it is through SBA lending programs, or other sources such as venture capital – so they can continue to expand at these outstanding rates.

Lending programs are one viable way for entrepreneurs to get their firms off the ground, but so is doing business in the federal marketplace. Small businesses are leading the way in innovation today, and the federal government should be accessing these new technologies and services by working with Latina entrepreneurs. However, since 1999, the federal government has not met its small business contracting goals, and in that time, minority-owned firms have lost over $21 billion in contracting opportunities. But there are solutions to this – we have the women’s procurement program which was actually signed into law in 2001 and would help Latina businesses access federal contracts. My Democratic colleagues and I will continue putting pressure on the administration to get this program up and running so we can ensure the federal government receives the best savings for the taxpayer dollar by doing business with Latina entrepreneurs.
It is clear that the face of small business is changing and it is becoming more and more Latina! They are already a driving force in our economy, and as Chairwoman of the House Small Business Committee, I pledge to work on their behalf to ensure they have the tools they need to continue forward on this successful path.

Congresswoman Nydia M. Velázquez represents New York’s 12th congressional district