In 2024, the issue of wage disparity for Latinas reached a new alarming milestone, with the pay gap widening for the first time in two decades. According to the American Association of University Women, Latinas across various employment types earn only 51 cents for every dollar paid to white, non-Hispanic men. This staggering inequality translates into a potential loss of approximately $1.2 million over a standard 40-year career. Activist Monica Ramirez, a prominent voice in the Latina Equal Pay Day campaign, emphasizes that the disparity could escalate to as much as $2 million due to severe pay differentials. Despite a decade’s worth of advocacy and awareness, Ramirez expresses frustration at the slow pace of progress toward closing the pay gap, questioning the effectiveness of traditional advice given to Latina workers, such as salary negotiation and regular performance reviews.
Evidence suggests that systemic issues of racism and sexism contribute significantly to the wage disparity. A report by Lean In highlights that more than half of the pay gap for Latinas stems from biases in the workplace. Research indicates that even with similar credentials, Hispanic women still face a 33% wage gap compared to their white male counterparts. In light of these challenges, Latinas are increasingly resorting to entrepreneurship as a solution to their economic constraints. Before the pandemic, Latinas were starting businesses at rates significantly higher than other demographic groups. However, post-pandemic, many seized the opportunity to foster their ventures when traditional job markets faltered, leading to a faster rate of business openings.
The drive towards entrepreneurship is rooted in a desire for financial independence and a better economic future. Joelle Martinez, President & CEO of the Latino Leadership Institute, acknowledges the harsh statistics showing that Latinas need to earn $2,207 to achieve pay equity with white men. Stories of successful Latina entrepreneurs, such as Staci LaToison—who transitioned from a corporate career to running her own global consulting firm, Dream Big Ventures—illustrate a shift towards taking control of career trajectories. LaToison’s experience underscores a lack of representation in senior roles and the motivation behind her podcast, which aims to inspire others by showcasing successful Latina leaders.
Entrepreneurs like Daniela Carvajalino, who founded an ed-tech platform in Colombia, highlight the resilience of Latinas in the business world, often driven by necessity to create better job opportunities. Over the years, Carvajalino and her team have trained numerous small business owners in both the U.S. and Latin America, reflecting the untapped potential within Latina entrepreneurship. Carvajalino also points out that Latina-owned businesses are adopting artificial intelligence technologies at higher rates than their white counterparts, a factor that can be pivotal for competitive advantage. As her company has grown to generate over $5 million in annual revenue, she emphasizes the challenges that come with entrepreneurship, stressing the need for persistence and resilience.
While the growth in Latina-owned businesses is promising, there are still challenges to overcome, particularly in achieving sustainable growth. Martinez argues that many Latino business owners tend to operate as sole proprietors and often face hurdles when attempting to grow their revenues beyond a million dollars, hitting what she refers to as a “scale wall.” To address these barriers, mentorship focusing on advanced sales tactics and revenue growth is crucial. Moreover, bridging the funding gap remains an urgent priority, as Latina business founders receive a mere 2% of venture capital, a trend that is reflective of broader issues faced by women entrepreneurs in securing financial backing.
Lastly, Ramirez asserts that systemic change regarding the pay gap can only come from higher levels of advocacy and reform. She urges for greater accountability from corporations and legislative action at the congressional level, emphasizing the need for laws that protect workers’ rights and promote equity in the workplace. Societal perceptions of Latina contributions need to shift, embracing the value and potential of Latina professionals across all sectors. By pushing for changes at both systemic and individual levels, advocates like Ramirez aspire to foster an environment where Latinas can not only survive but thrive in their economic endeavors.
