Delaware’s Greatest Opportunity

BY CARLOS DE LOS RAMOS AND MARY DUPONT

AS AMERICANS, an important part of our identity comes from family lore about the struggles and triumphs of relatives who came to this country and paved the way for us. As a melting pot, the U.S. population has roots in countries around the world, where we escaped from famine, poverty, violence, repression, or we were abducted and forced into captivity to get here. No matter how you look at it, leaving home to go to a strange land across the world is rarely the desired option.

Although most arrived with nothing to help them get started, they were motivated by a vision of opportunity to become a part of the American Dream. Data shows that throughout our history, immigrants have an economic track record as the backbone of many industries. They built America, fueled the economy, and established a financial momentum that contributed to enabling the U.S. the most prosperous country on Earth. Immigrants brought a hunger and idealism that inspired dedication and hard work. This is our American legacy.

Today, this pattern continues for Hispanic immigrants, who are the fastest growing ethnic group in the U.S. at 19 percent (62,000,000), as well as in Delaware where their numbers have almost tripled from 37,277 in 2000 to 104,290, according to Census Bureau data. In Delaware, they are a melting pot of their own—mostly from the Caribbean in New Castle County and from Central America in Sussex County with many from South America throughout the state.

National studies on the economic impact of Latinos agree. The bottom line is that their economic contributions stand out in terms of employment rate, business development, and spending power. However, because of language and cultural barriers that separate them from the mainstream, Latinos tend to be obscured in discussions about the economy, equity, and opportunity. Latino leaders are rarely at the table for community, government, and business deliberations on major initiatives or new program strategies. Never has the old adage “out of sight, out of mind” been so true.

However, if we are concerned about our economy, maybe we should change this dynamic. According to a study by the Latino Donor’s Collaborative, “The total economic output (or GDP) of Latinos in the U.S. was $2.7 trillion in 2019, up from $1.7 trillion in 2010.” An article on Hispanic economic impact in Governing Magazine points out that “If Hispanics in the U.S. were an independent country, they’d have the world’s seventh-largest economy. And they will also account for the majority of new adults entering the workforce in coming years.”

Latinos are the youngest major population segment in the country with a median age of 30 in 2019, adding significant horsepower to their efforts. Data from the Delaware Department of Education suggests that we can expect these trends to continue as the number of Latino students has increased 48 percent over the past 10 years, compared to a nine percent decrease for Whites and just one percent for Blacks. Those second-generation kids are headed to college, the workforce, and let’s not forget, the polls.

Their parents and family members are highly employed with an employment rate of 61.1 percent compared to 58.4 percent of the general population, and they start one-in-four of every new business. In 2019, Latino median household income in Delaware was $56,500 versus $69,560 for the state. Although Latinos earn less than other Delaware residents, much of their hardearned money is spent right here—on home ownership, quality of life, and investments in children, education, and business opportunities, driven by cultural traditions that place priorities on family, education, faith, and community.

Despite their entrepreneurial spirit, immigrant business owners often have cultural and language barriers that create a reluctance to borrowing or seeking advice from mainstream service providers. There is also a lack of understanding about American financial and business systems that inhibits business growth. McKinsey & Company correctly states: “Latino immigrants struggle to be fully embraced by the United States (and) as a group they remain economically well behind non-Latino White Americans. Addressing the barriers preventing Latinos from full economic participation could have a multitrillion-dollar impact, further unleashing their entrepreneurial spirit, creating millions of jobs, driving consumer spending, and building intergenerational wealth.”

To address these inequities, the Aspen Institute established a new program targeting cities across the country with a high concentration of Latinos to foster small business growth: “The Aspen Institute Latinos and Society’s new initiative focused on Latino communities will help build the capacity of local leaders and organizations. Accelerating the economic recovery of Latino communities and businesses is critical for the country as a whole.” Closer to home, La Plaza Delaware in Sussex County is focused on small business development to support a booming Latino business community in the southern part of the state, and leadership development to amplify the voices and presence of Latino leaders across all sectors statewide.

Ultimately, to change the paradigm in the way we do business, we need to decide that Latino participation matters; develop culturally targeted services to cultivate their potential; implement an inclusive approach to leadership; and make Latino engagement a priority. We need to open the doors and invite our Latino neighbors to the table, and not as an afterthought.

As we search for insights and answers about how to fuel our economy through job creation, business development, and spending power, let’s remember how it happened in our own families. If we open our eyes and recognize the riches in our midst, we will see an economic engine that is making a powerful impact in our economy every day. Latinos came here as our ancestors did—full of questions, enthusiasm, and commitment to their new country— and now is their time to be recognized as leaders, business owners, consumers, and investors. Our Latino community is Delaware’s opportunity.

Carlos De Los Ramos chairs the Delaware Hispanic Commission and Mary Dupont is the executive director of La Plaza Delaware.