Hispanic Heritage: The Power in Numbers
It’s Hispanic Heritage Month in the US.
A time to celebrate the vibrancy and culture of the Latinx community as well as all the contributions that we have brought to the world. I have mixed feelings about these “months.” On the one hand, I agree that it brings attention and awareness to important historical context and makes space to celebrate people and stories that are so often excluded. But at the same time, it’s something individuals and organizations should be recognizing and celebrating on a regular basis, not only one month out of the year.
I recently attended a virtual conference and one of the speakers mentioned that Latinos in the US possess over $2 trillion in buying power. The US Latino GDP would represent the 8th largest GDP in the world if it were a country. I have probably heard this stat at every single Latinx conference I have attended, and I’m sure you may have heard it too. I’ve heard it from non-Latinx individuals, and I have also heard it from peers and leaders within the Latinx community. It has never sat well with me, and I’m unpacking why it can be a problematic narrative and how we can each play a role to shift the conversation.
I imagine that many speakers lead with this stat to inspire the audience. Maybe they have felt personally inspired by this number. They usually say it with a big smile and enthusiasm. As if to say- “Look around! We’ve made it!” Or, “Wow! Our brand should really care about this group- they have a lot of money to buy our products!” But when I do look around, I don’t usually see a big reaction or sense of excitement. I have never heard folks coming together at these events to decide how we could make real change by redirecting our dollars to BIPOC owned businesses, or other ways to enact change through our spending. I also don’t see this stat changing the way Latinx are being represented in many brands. So who is it really serving when we hear it?
The Latino population continues to grow in the US, and with that so does the size of the Latinx workforce. In fact, 82% of workforce growth in the US came from the Latinx population between 2010-2017. Despite this growth, we continue to represent a tiny percentage in many industries- on average around only 6% in the tech industry, often less at executive levels, and even less on corporate Boards. Why is that we still see such a big disparity?
The growth data and the info on Latinx buying power has clearly not been enough to change the disparities, and Latinos continue to be underrepresented in many organizations' workforce, product strategy, and campaigns.
Latinos are also the fastest growing group of small business owners in the US, growing at 34%. I witnessed firsthand the resilience and hard work of many Latino small business owners in my previous role leading Google’s strategy for this market. I helped launch the Google Digital Coaches program and it was our goal to give back to this community that often faces roadblocks in launching and growing their business. No one can argue the unmatchable work ethic that Latinx individuals have. So why is it that many Latinx small business owners continue to face an uphill battle when it comes to securing financial backing, or simply staying afloat in neighborhoods that face unending gentrification? Latina entrepreneurs in particular are the fastest growing segment, and receive less than 1% of VC funding today. It’s another example of when our growth as a community has not led to more equality.
To me, the stat around the Latinx buying power promotes a discouraging narrative. It implies that as a community, our worth relies on spending power and economic contributions. We shouldn’t matter to a politician or a business just because of our spending potential. We shouldn’t get invited to the table just because we bring economic value. It’s a dehumanizing narrative that is anything but celebratory of our community.
Another issue with the stat is that despite a large collective buying power, there is still a great amount of economic disparity that exists amongst the US Latinx population. The distribution of wealth within our own community is not equal. Farmworkers, immigrants, restaurant workers, and many others continue to struggle for a decent working wage and basic human rights like healthcare, among others. COVID-19 has truly illuminated that as we see Latinx individuals among the most affected by this pandemic, among other groups. So the stat around trillions in buying power is an erasure of the very real experience that many Latinos living in poverty have.
I personally have a lot of unlearning to do around this topic, and how we can use data for good in different DEI initiatives. In different positions I’ve held, I’m often crafting a business proposal to request resources for a program for the Latinx community. I myself have used data to show the big economic opportunity & argue why a brand should invest more in Latino small businesses, recruiting Latinx talent, or retention of this demographic. In the DEI world, we often hear how investing in a more diverse workforce isn’t just the right thing to do, it’s also good for business. Countless studies have shown how a more diverse team leads to better ideas, productivity, and more revenue. But what is wrong with choosing to take action just because it IS the right thing to do? Why do we need to tie it back to some economic or numeric goal in order to justify it?
The data is clear that Latinos are a key to future economic growth in the US. We cannot do well in the US if the Latino community does not do well. The US GDP would actually be in negative growth if not for contributions from the Latinx community. But that doesn’t mean that we should define ourselves based solely on economic value. It’s an important lesson on the power in data, and how the way we present it can have a big impact on the narrative we are creating. If you have heard the stat on Latinx buying power or used it before, I hope I’ve sparked some ideas on any unlearning or new learning you’d like to do around the Latinx community and its potential and value. What are you going to do with this new info today?
