Jul 26, 2018

77% of Hispanic Small Business Owners Plan for Growth

To gain insights into one of the fastest-growing segments of small business, Bank of America surveyed hundreds of Hispanic business owners from around the country. This is the second annual Bank of America Hispanic Small Business Spotlight, and it highlights key aspirations and concerns, and contrasts them with those of non-Hispanic peers.

First off, the survey revealed that Hispanic small business owners are quite optimistic in general. About 77% of respondents say they plan to grow their business over the next five years. This stands in stark contrast to the 50% of non-Hispanic business owners who have similar plans. Indeed, Hispanic entrepreneurs are uniquely confident, as nearly 90% believe that business opportunities will continue to strengthen over the coming decade.

On a broader scale, 60% of survey respondents felt local and national economies will improve over the next year. That’s substantially higher than the 48% who felt similarly last year. And it’s worth noting that only 46% of non-Hispanic business owners reported feeling confident in economic growth this year.

Given these insights, it’s not surprising that more than 70% of Hispanic business owners believe their revenues will increase and plan to hire additional staff over the next year. Once again, this is markedly different from the 50% reported by their non-Hispanic peers.

Of course, it’s not all glowing news for Hispanic business owners. More than 70% are concerned about rising healthcare costs, though that number has actually gone down a little bit form last year. Other concerns include commodities prices, corporate tax rates, consumer spending, interest rates, and credit availability. It should be pointed out that the amount of entrepreneurs reporting these concerns also decreased this year versus 2017.

The bottom line is that many Hispanic business owners feel their cultural heritage has a positive impact on business. For example, 43% say it helps them grow their business, while only 16% say it’s a hindrance. And 42% say it helps them attract and retain customers, while only 15% say it’s a hindrance. Only when asked about accessing capital did a more sizable percentage (26%) report that their heritage can be a hindrance.

The survey suggests this cultural boost comes at least partially from the fact that Hispanic business owners have a strong network of family and friends, which they heavily rely on. In fact, when asked who helps them most with the running of their business, the most popular response wasn’t a mentor, but “family and friends.”

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About the author

Grant Olsen
Grant Olsen is a writer specializing in small business loans, leadership skills, and growth strategies. He is a contributing writer for KSL 5 TV, where his articles have generated more than 6 million page views, and has been featured on FitSmallBusiness.com and ModernHealthcare.com. Grant is also the author of the book "Rhino Trouble." He has a B.A. in English from Brigham Young University.

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