Latino entrepreneurship is a vital and growing force in San Diego County’s economy. Across the region, Latino business owners are driving innovation, creating jobs, and building generational wealth—contributions that strengthen the entire community.
Yet, despite their outsized impact, Latino entrepreneurs continue to face systemic barriers that limit access to capital, technical support and growth opportunities.
To build a thriving, inclusive economy, it should reflect and uplift the diversity of our region. Through initiatives like the El Camino Fund, San Diego Foundation is committed to investing in Latino-led and Latino-serving nonprofits that support Latino business owners at every stage of their entrepreneurial journey.
Growing Power of Latino Entrepreneurs
Latino entrepreneurs represent one of the fastest-growing segments of the U.S. small business landscape.
According to the Stanford Latino Entrepreneurship Initiative (SLEI), Latino-owned businesses grew by 34% over the past decade, compared to just 1% growth for all other businesses. In California—home to the nation’s largest Latino population—Latinos make up nearly 40% of the state’s residents and play an increasingly central role in its economic vitality.
Locally, San Diego County is home to more than 1.1 million Latino residents, accounting for over one-third of the population, according to The State of San Diego Latinos Report.
A 2021 report by California Competes found that Latino-owned businesses account for roughly 13% of all businesses in San Diego County. These entrepreneurs are building everything from neighborhood restaurants and construction firms to tech startups and professional service companies.
Challenges to Growth and Sustainability
While Latino-owned businesses are launching at a faster rate than others, they tend to remain smaller and face greater barriers to accessing capital. The Latino Business Action Network (LBAN) found that only 20% of Latino-owned businesses that applied for national bank loans over $100,000 received funding, compared to 50% of White-owned businesses.
In San Diego County, many Latino entrepreneurs operate in industries with lower average revenues and face hurdles such as limited credit history, language barriers, and lack of connections to financial institutions or business networks. These challenges can prevent otherwise viable businesses from scaling and thriving.
Support organizations such as Sherman Heights Community Center, Accessity and Logan Heights Community Development Corporation are helping to fill the gap by offering culturally competent technical assistance, microloans and entrepreneurship training programs designed specifically for the Latino community.
However, greater philanthropic investment is needed to ensure these resources reach more aspiring and existing entrepreneurs.
Why Latino Entrepreneurship Benefits Everyone
The success of Latino entrepreneurs isn’t just a win for Latino communities—it’s a win for the entire region.
A recent McKinsey & Company report estimated that closing the racial wealth gap could add $1 trillion to $1.5 trillion to the U.S. GDP over the next decade. Supporting Latino-owned businesses in San Diego can mean more jobs, more economic activity and more opportunities for everyone.
Latino business owners are also more likely to reinvest in their local communities, hire local talent and serve as role models for the next generation. By helping Latino entrepreneurs succeed, we foster stronger neighborhoods, reduce economic inequality, and build a more resilient economy.
Investing in Community-Led Solutions
Philanthropic organizations have a critical role to play in advancing economic opportunity. Through El Camino Fund at San Diego Foundation, we’re working to address the structural barriers Latino communities face by supporting nonprofit organizations that are led by, staffed by and rooted in the Latino community.
Launched in 2023, El Camino Fund provides targeted funding to nonprofits that are building pathways to economic mobility. This approach centers community knowledge and leadership—ensuring that solutions are shaped by those closest to the challenges.
Looking Ahead
As San Diego County continues to grow and diversify, investing in Latino entrepreneurship is an economic imperative. By unlocking access to opportunity, we enable Latino business owners to do what they do best: innovate, uplift their communities and drive prosperity for all.
At San Diego Foundation, we believe in just, equitable, and resilient communities where everyone can prosper, thrive and feel like they belong. By supporting the El Camino Fund, donors and community members can help create a more equitable economy where Latino entrepreneurs—and the communities they serve—can thrive.
Learn More About Supporting Latino Entrepreneurs Through El Camino Fund
