Latina business owners in Georgia report a median income roughly $25,000 below that of their male counterparts — a gap twice as wide as what researchers found in states considered national leaders for Latino entrepreneurship.

That disparity is the headline finding of the 2018 Georgia Latino Entrepreneurship Study, the first research of its kind conducted in the state. The Latino Community Fund (LCF Georgia) led the project in partnership with the Stanford Latino Entrepreneurship Initiative, Emory University's Goizueta Business School, the University of Georgia and the UGA Small Business Development Center's Office of Minority Business Development.

A community driven by necessity as much as opportunity

Georgia's Latino business owners look different from the national picture. The study found 82% are foreign-born and recent immigrants, nearly double the 44% national average for Latino entrepreneurs. Researchers say that gap shapes why many of these businesses exist in the first place: alongside the traditional draw of building income and wealth, a large share of owners cited necessity — limited job opportunities and the need to balance work with family — as a driving factor behind starting a business.

That dynamic plays out unevenly by gender. Latina women own 64% of Latino businesses in Georgia, but 95% of those businesses report revenue under $250,000, compared with 89% of Latino-owned businesses in the state overall. The median revenue gap between women- and men-owned Latino businesses in Georgia sits at $58,000 — wider than the $46,810 gap found in the four states researchers used as a benchmark for a more mature Latino business ecosystem: Texas, California, New York and Florida.

Despite those gaps, the businesses remain tightly woven into their communities. Nearly a quarter are co-owned by family members, a higher share than the U.S. average, and most serve other Hispanic and Latino customers directly. Researchers found 71% of Latino-owned businesses in Georgia operate in Spanish, or in both Spanish and English — well above the 56% recorded in the benchmark states and 45% nationally.

What's needed to close the gap

Researchers pointed to a consistent set of factors behind the businesses that succeed: access to education and certification, knowledge of funding options, strong personal and professional networks, and a dependable social safety net.

Gigi Pedraza, executive director of LCF Georgia, said the findings are meant to spur action, not just document a problem.

"Latino entrepreneurs are great contributors to Georgia's economy, yet this study has brought to light a number of challenges our community faces when engaging in commercial activity in the state," Pedraza said. "We are looking forward to developing a concerted effort across sectors to create the conditions for our entrepreneurs to grow and thrive."

Carolina Ramon, director of the UGA SBDC's Office of Minority Business Development and a co-author of the report, said the data is a starting point for more targeted support.

"The number of Latino businesses in Georgia continues to grow," Ramon said. "It is imperative to understand and address the challenges, needs, and opportunities for those enterprises, so we can provide resources to help them to improve in terms of revenues, financial and operational capacity."