Our state currently enjoys one of the highest standards of living in the country. This high standard exists due to our long-term economic growth which creates new jobs and provides more opportunities to residents. The engine behind this economic growth for New Jersey has been – and will continue to be – entrepreneurship. Entrepreneurs create the companies that enable us to enjoy a high standard of living. They are among our most important residents and we must, as a community, ensure that New Jersey becomes the “location of choice” for current and future entrepreneurs. This allows us to achieve two goals:  First, keeping New Jersey-based entrepreneurs here and secondly attracting entrepreneurs currently living in other states to New Jersey. In order to make this happen, we need to answer two questions: Who comprises the entrepreneurial community and what must we do to attract them to New Jersey.

Entrepreneurs are a diverse group not easily conforming to a single descriptive profile. They vary based on education, life experience, motivation and goals. They do, however, share certain trends and demographic characteristics that allow us to formulate a good picture of who they are. Among the largest and fastest growing identifiable entrepreneurial groups are Hispanics. Hispanics are launching new businesses at more than twice the right of the overall population and will soon control over 2 million businesses. Why do Hispanics demonstrate a relatively high incidence of entrepreneurship relative to other groups?

There are several key reasons:

1. Heritage. Entrepreneurship is innate to many Hispanics due to experiences in Latin America where economic opportunities outside of entrepreneurship are very limited.

2. Practical reality. Hispanics raised and educated outside of the United States may find that assimilating into corporate culture in the U.S. is very challenging. Launching a new company is an effective way to achieve economic independence while avoiding the real and perceived barriers inherent to large companies.

3. Risk-tolerance. Over 40 percent of Hispanics in the United States were born outside the country and emigrated here. Leaving your native country in search of opportunities abroad prepares one for taking risks in life. In relative terms, starting a business is far less risky then adopting a new country. With an understanding of who entrepreneurs are and what motivates them, all members of the New Jersey community can play a role in attracting them to the state. Large, established businesses can give new and small businesses the opportunity to serve as suppliers. Developing formal programs and initiatives – where managers are provided incentives to procure from small businesses – is an excellent way to start. Consumers can consciously make an effort to try products and services produced by local entrepreneurs. The financial community can develop additional financing structures and funding products that target start-up ventures and small businesses. Access to capital is considered by Hispanic entrepreneurs to be one of the top 3 hurdles to starting a new venture in New Jersey. State and local government can play a role by reducing the barriers to entry required to launch a business in New Jersey.

Streamlining registration paperwork, clarifying regulatory requirements, providing tax incentives to entrepreneurs and creating a competitive environment for benefits providers are some key steps that can be taken. Hispanic entrepreneurs will start businesses in the communities that provide the most attractive package of incentives and opportunities. Let´s make New Jersey the community of choice for entrepreneurs so we can continue to reap the long-term economic benefits for generations.