The Afro-Argentine community is gaining ground in Argentina, where 56% of them are concentrated in the metropolitan region and the province of Buenos Aires. However, they face difficulties in the business arena due to excessive bureaucracy, high loan costs, and especially racial discrimination.
According to a recent study conducted by CAF – Latin American and Caribbean Development Bank, in collaboration with the Feira Preta Institute and Plano CDE, compared to other countries, Argentina has the lowest business formalization rate, which is due to the high costs associated with the formalization process and the difficulties in navigating state bureaucracies.
Although the country does not have a strong association between business and racial identity, 36% of Afro-Argentines have experienced racial discrimination from their clients. According to the study, 62% of Afro-Argentines believe that businesses should be concerned about racial issues.
While Argentina stands out as the Latin American economy that most encourages these ventures, primarily supporting small and medium enterprises, Afro-Argentine entrepreneurs still face significant barriers to inclusion and financing. Although the context is more encouraging compared to other neighboring nations, significant challenges remain.
Approximately 303,000 Argentines identify as Afro-descendants and engage in entrepreneurship as a means of subsistence. Despite many of these businesses playing a crucial role in the economic support of families, as 59% of the ventures generate the only or main income of the household, the current income level is insufficient to cover the basic subsistence basket.
The report also highlights that, although initiatives led by Afro-entrepreneurs show innovation and resilience, financial barriers and relationships with the banking system continue to be major obstacles to their growth. Access to credit presents itself as the main bottleneck, constituting an additional challenge for Afro-Argentine entrepreneurs on their path to business success.
