The latest Bank of America Hispanic Small Business Spotlight, the second of its kind, found that Hispanic business owners are overwhelmingly hopeful in regards to the American economy and their chance to sustainably grow over time. Hispanic-owned businesses are experiencing rapid growth, and their leaders are making extraordinary impacts in their communities and in the overall economy. We have seen tremendous growth among Hispanic-owned businesses seeking working capital and business cash advance loans over the past several years. They look to us because we can offer a variety of small business financing options for every client — faster and easier than a traditional bank.
Four hundred Hispanic business owners were surveyed by Bank of America; their responses are what drove the results in this report. The report also analyzes the differences and similarities between Hispanic-owned businesses and non-Hispanic-owned businesses. All data was collected between Aug. 8, 2017 and Sept. 28, 2017 and the survey took place online. 1,013 small business owners with revenues between $100,000 and $4,999,999 and 2 to 99 employees answered questions; 394 additional interviews took place with Hispanic business owners, and nearly half of them primarily speak Spanish. All of these factors were weighted against national benchmarks and make up the sample size for this report.
Hispanic Small Business Spotlight Findings
Overall, the Bank of America Hispanic Small Business Spotlight found that Hispanic business owners are more confident now than they were in 2017 regarding the economy, and are more optimistic about revenue and new employee hiring. Many Hispanic-owned business are expecting to grow over the next five years, and perceive the business environment to become stronger over the next 10 years. Following are the key findings from the report.
Finding #1: Hispanic Entrepreneurs are Optimistic and See Future Strong Growth
Seventy-seven percent of Hispanic business owners expect to see a growth in their business over the next five years, compared to 50% of non-Hispanic business owners; 89% of Hispanic business owners believe their environments will become stronger over the next decade. Sixty percent say that they believe the national economy will improve over the next year, while 67% say their local economies will grow as well. Regarding increased revenues, 71% of Hispanic business owners anticipate growth in this regard, compared to 51% of non-Hispanic business owners. Additionally, 37% of Hispanic business owners intend to hire more workers over the next year, and only 16% of non-Hispanic business owners said the same.
Finding #2: Hispanic Business Owners are Less Concerned About the Economy, but More Concerned than Non-Hispanic Business Owners About Specific Challenges
The only category where Hispanic business owners are less concerned than their non-Hispanic counterparts is healthcare costs. Hispanic business owners are more concerned than their counterparts in the remaining categories, including: corporate tax rates, consumer spending, interest rates, commodities prices, stretch of the U.S. dollar, U.S. and/or global stock market, credit availability.
Finding #3: Hispanic Entrepreneurs Bank on Their Heritage
Hispanic entrepreneurs state that their cultural heritage has either helped or had no impact in an overwhelmingly positive way, including in the areas of: growth, retaining and attracting new talent and customers, accessing capital, vendor access, and networking. Sixty-one percent report that their friends and family help them the most in running their business, followed by business mentors (55%) and accountants (43%).
Finding #4: Attracting and Retaining Employees is Paramount
In the last two years, 9 out of ten Hispanic entrepreneurs report making at least one initiative to attract/retain great employees through offering flexible hours, perks, reward programs; hiring diverse workers and employing team-building activities; and offering competitive benefits and vacations packages. Hispanic business owners outpace their non-Hispanic counterparts in these efforts at a rate of 30% (Hispanic) vs. 14% (non-Hispanic).
Finding #5: Social Media is Key
Hispanic business owners are utilizing social media and other digital sources as ways to boost their businesses. Fifty-three percent feel that social media has affected their bottom line in a positive way, compared to 29% of non-Hispanic business owners. Social media is used for marketing, networking, communicating with customers, and hiring new employees. Digital tools, like financial tracking, utilizing online forums and articles are used more by Hispanic business owners — 93% say they use it regularly vs. 73% of non-Hispanic business owners.
These survey results point to Hispanic business owners recognizing the trends and challenges in small business and harnessing it to their advantage in their respective industries.