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BROADVIEW, ILLINOIS - SEPTEMBER 27: Federal law enforcement agents confront demonstrators protesting outside of an immigrant processing center on September 27, 2025 in Broadview, Illinois. The demonstrators were protesting a recent surge in ICE apprehensions in the Chicago area, part of a push by the Trump administration dubbed Operation Midway Blitz. (Photo by Scott Olson/Getty Images) Getty Images One economic impact of ICE raids that warrants careful attention is the decline in Latino entrepreneurial activity. The cost of ICE raids is typically measured by the loss of labor and consumer spending. For example, the president of the Illinois Restaurant Association noted that fear of ICE agents has resulted in a 20% drop in the restaurant workforce. Additionally, Constellation Brands CEO Bill Newlands stated that ICE raids make it hard to predict consumer behavior, which in turn complicates scheduling employees and stocking shelves. A stronger emphasis on the entrepreneurial impacts is crucial, as declines in Latino entrepreneurial activity not only affect Latino communities but also the overall economic health of cities, states, and the nation. The economic importance of Latino businesses is recognized across the country, and was aptly summarized by Illinois Governor JB Pritzker, who said, “Latino-owned businesses are the heartbeat of our communities, driving innovation, creating jobs, and enriching the culture of our state.” Latino Entrepreneurs Miami Beach, Florida, Navarro Discount Pharmacy, Hispanic owned business. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images) Jeffrey Greenberg/Universal Images Group via Getty Images Latinos are starting businesses at a faster pace than the overall U.S. average. For example, from 2018 to 2023, Latino-owned businesses grew by 44%, with total revenue increasing by 36%. Meanwhile, the number of white-owned businesses declined slightly. Regarding profitability in 2024, 84% of Latino-owned businesses were profitable and performed better than white-owned businesses. However, the Center for Entrepreneurial Studies at Stanford University notes that Latino-owned businesses tend to be smaller than white-owned ones and are less likely to generate over $1 million in sales. Nonetheless, Stanford University Professor George Foster pointed out that Latino entrepreneurship is a key driver of the growth in the U.S. entrepreneurial ecosystem, and a recent report, The State of Latino Entrepreneurship, showed that Latino entrepreneurs are creating jobs. It is important to recognize that the growth and success of Latino-owned businesses happen despite significant challenges. For example, 21% of Latino entrepreneurs report receiving full funding for their businesses, compared to 40% of white entrepreneurs. Additionally, 87% of white entrepreneurs received an explanation for their denied funding, while just over half, 51%, of Latinos did. MORE FOR YOU ICE enforcement policies threaten Latino entrepreneurs across the country, including in Chicago and its suburbs. Since Chicago and its suburbs have seen a spike in current ICE activity, examining its impact on Latino entrepreneurs there and some of its potential cascading effects can offer a clearer understanding of how these raids cause economic consequences beyond the Latino community. The Importance of Latino Entrepreneurship in Chicago And Its Suburbs Latino Business Corridor Corbis via Getty Images The Illinois Latino community is a vibrant center of entrepreneurial activity. For example, the Chicago neighborhood of Little Village has been home to Latinos since the 1970s, predominantly Mexican and Mexican American. Today, 53% of the Latino residents in Little Village are foreign-born, and over 80% of the community is Latino. It is also home to many Latino-owned businesses that generate millions in tax revenue and create thousands of jobs. Little Village is regarded as the social and commercial hub of the Midwest Latino community. Nationally, it ranks second in size only to East Los Angeles. The economic impact of Latino-owned businesses along 26th Street, the main commercial hub, highlights the importance of Latino entrepreneurship. More than 500 businesses generate over $1 billion annually. The only retail corridor in Chicago that is busier and generates more revenue is the north Michigan Avenue corridor, known as the Magnificent Mile. While the economic significance of Little Village can’t be overstated, it’s important to recognize that Latino-owned businesses making substantial contributions to the economy are spread throughout the City of Chicago, its suburbs, and every part of the state, and current ICE activity is causing economic uncertainty and instability, especially among Latino small business owners. Latino Entrepreneurship And ICE Raids in Chicago And The Suburbs Chicago and the suburbs have become the focus of ICE raids that show no signs of slowing down. For example, Homeland Security Secretary Kristi Noem announced at a Chicago press conference that “ICE is here to stay. We are buying more buildings in the Chicagoland area.” She went on to add that they are expanding their work beyond the City of Chicago and into the suburbs. As in other parts of the country, Latino entrepreneurs in Chicago and the suburbs largely run small businesses. These businesses support families, bring economic benefits to communities, the state, and the nation, and create jobs for both Latinos and non-Latinos. However, for small businesses to succeed, they need a steady labor force and a predictable flow of customers. Current ICE activities in Chicago have severely disrupted both and are threatening the survival of Latino-owned businesses in the area. Gerardo Auza, a Latino small-business owner in the predominantly Latino Chicago neighborhood of Belmont Cragin, recently told the local ABC news station that customers are not showing up, and even if they did, he would not have enough workers to serve them. He says this situation has arisen because of ICE and the fear that has gripped the community. A Latina small-business owner in the suburbs of Chicago, who chose not to reveal her name to protect her identity, said the fall and holiday seasons are her busiest times. She explained that she ordered inventory based on past sales, and now, although the inventory is paid for and on the shelves, she has had very few customers, which has forced her to cut employee hours and even lay off some workers. She adds that she is not sure she will be able to pay herself or keep her business running and has told her family that there will be little money for the holidays. She mentioned that because her business is suffering due to ICE's presence, she is not dining out or buying goods or services from other businesses. “Why are they going after working people and hurting everyone?”, she asked. The Latino owner of a landscaping and snow removal company in Chicago, who did not give his name to protect himself and his workers, said they are turning down business, cutting hours, and sending fewer people out to jobs to avoid appearing as a large group of Latinos. He has told his workers not to talk to each other unless necessary. He issued this directive because most workers are comfortable speaking in Spanish, and again, he did not want them to draw attention to themselves. He went on to say that he is not sure he will be able to keep his business, which would put himself and 17 others out of work. He added that he and his family are not shopping for anything other than essentials and have given up going to restaurants. All of this, he says, is due to ICE's presence. While the stories of personal economic hardship are vividly presented, what is less emphasized is that tax revenues will decrease significantly for municipalities, counties, the state, and the nation. The reduction in these revenues is likely to have a ripple effect on government programs, projects, essential services, and infrastructure support. Additionally, the long-term economic impact of these revenue losses, stemming from the decline in income from Latino-owned businesses, will likely affect businesses well beyond the Latino community. The materials, goods, and services needed by Latino businesses are produced by Latino and non-Latino businesses, and the less that is purchased, the greater the revenue losses for all businesses. Relief For Latino Entrepreneurs Is Needed To Mitigate the Economic Consequences Of The ICE Raids A recent Brookings Institution report details the nationwide economic impact of these raids. In the report, Brookings Fellow Tonantzin Carmona highlights efforts by state and local governments, including those in Los Angeles County and Chicago, to provide both short- and long-term assistance to all businesses, especially Latino-owned businesses, affected by the economic fallout from ICE raids. Additionally, a variety of responses are available to non-profit organizations, large businesses, and governments. These include establishing funds to support economic stability, lobbying Congress to preserve small-business programs, launching local campaigns to promote and incentivize buying local, improving access to capital, and creating systems for data collection and distribution. Across all responses, flexibility and quick action are essential. Editorial StandardsReprints & Permissions
