Illinois needs technological entrepreneurs who can identify and pursue new markets in underserved parts of the country and the world. Yet Latinos do not have a strong presence in STEM-based start-ups.
Key Findings- In 2007 Latinos were employed in only 5.5% of information technology jobs nationally and only 5.8% of key non-IT high technology jobs.
- Bilingual U.S. Latinos can leverage their cultural understanding and communication skills to create and growbusinesses in emerging foreign and domestic high technology and service markets.
- Fewer Latinos than Whites pursue self-employment in science, technology, engineering and math fields, due, in part, to the low rates and small numbers of Latinos achieving bachelors’, masters’, or doctorates in STEM fields.
- Immigrant Latinos have lower self-employment probabilities than do U.S.-born White Americans. But immigrants from developed countries have higher self-employment probabilities than do U.S.-born Whites.
- Latino entrepreneurs in technology believe most venture capital is concentrated on the nation’s two coasts, especially the west coast
- Latinos are under-represented in new high technology ventures. In addition, there is not a critical mass of innovators and investors to support the rapid growth of Latino-led high technology ventures that serve that market.
- Because of their educational background, most Mexican immigrants nationwide are more likely to be self-employed in non-STEM fields. Therefore, an educational system geared to increase awareness early on would likely result in more Mexican and other Latino-origin entrepreneurs in STEM fields to achieve success in this country.
Recommendations
Organizations should serve as a conduit between venture capitalists focused on Latino markets and Illinois-based entrepreneurs willing to take on the risk for potential long-term rewards.
- To stimulate the growth and development of new products, services and markets, organizations and state and local development agencies and area and Latino chambers of commerce should convene and regularly host Latino networking gatherings and inventor/innovator forums, and should develop and maintain intelligence on Latino markets in the U.S. and in Latin America.
- Organizations should develop and maintain a database of Latino-owned or operated production and service capabilities in Illinois able to serve high tech businesses and needs. This information is a key element in presentations to possible investors in Illinois and to possible buyers of Illinois services and products.
- Venture capital should be redirected to the Midwest by encouraging investment in Illinois-based ventures focused on Latino markets and entrepreneurship. LTA may serve as a conduit for those willing to take on the risk for potential long-term rewards.
- It is important to recognize Latinos at the “bleeding edge” of business and scientific and technological innovation.