Employee Ownership as Economic Empowerment for Latinos
Employee Ownership at Fuerza Migrante's 1st Binational Conference of Youth Mexican American Leaders
Last Friday, I had the privilege of attending Fuerza Migrante’s 1st Binational Conference of Mexican American Youth Leaders in Washington, DC. The conference focused on critical issues such as access to education, immigration reform, health accessibility, and Latino economic empowerment.
A highlight of the event was Rodrigo Zuloaga’s presentation. Rodrigo is one of the 3 founders of SOMOS Foods, who shared his inspiring entrepreneurial journey among the youth. The founders, Daniel Lubetzky, Miguel Leal, and Rodrigo all previously worked at KIND Snacks, where they developed a vision to share the best of Mexico with the rest of the world. At KIND snacks they were also able to convert employee stakes into startup capital for their business.
At the conference, Rodrigo developed a compelling presentation on access to capital alternatives for Latino entrepreneurs. This segment was particularly significant as lack of access to capital is a major barrier for many aspiring business owners, especially among minorities. Here is the capital breakdown:
Pre Launch Funding Options: Savings, friends & family, angel investors, incubators, and crowdfunding
Starting Funding Options: Supplier financing, SBA loans, factoring, asset-based lending, purchase order financing, crowdfunding, crowdlending, and accelerators
Later Stage Funding: Bank loans, venture capital, employee ownership, and private equity (+5 years)
The emphasis on employee ownership was particularly empowering for the youth since it is not a topic commonly discussed among us. While there, we got to learn not just its significant benefits but also how it serves as a springboard for entrepreneurship, particularly through the innovative concept of converting employee stakes into startup capital. Employee ownership models should be embraced in LATAM as a powerful tool for social change. It has the potential to enhance wages, improve working conditions, and strengthen local economies. I felt a deep sense of gratitude to hear this concept being shared within my community and hope it continues to be used as a tool to drive meaningful change in our local economies.
Check This Out:
Employee Ownership In the Americas: A Path to Shared Prosperity — A book by collaborative efforts that includes Rodrigo himself and other experts!