In a recent study, entitled Bank of America Hispanic Small Business Spotlight, approximately 300 Hispanic small business owners were surveyed from across the United States about issues ranging from their economic and business outlooks for the coming year to their views on lending along with over 1,000 non-Hispanic business owners. With sweeping corporate tax changes promised by President Trump on the horizon, 2017 promises to be a year of tremendous opportunity for small business owners.
Although corporate tax rates, interest rates and credit availability remain a concern for Hispanic business owners, like their non-Hispanic counterparts, there is a strong sense of optimism.
Here are some of the key takeaways from the Study:
- 71 percent of Hispanic business owners anticipate revenue will increase in 2017
- 76 percent of Hispanic business owners plan to grow their business over the next five years
- 54 percent of Hispanic business owners plan to hire in 2017
- 62 percent of Hispanic business owners believe their local economy will improve over the next 12 months
- 48 percent of Hispanic business owners believe the national economy will improve over the next 12 months
- 46 percent of Hispanic business owners believe the global economy will improve over the next 12 months
Hispanic entrepreneurs also shared some of the biggest business challenges they face:
- 23 percent cited maintaining a work-life balance
- 19 percent noted finding qualified employees
- 17 percent said understanding business regulations and policies
- 17 percent mentioned access to loan funding
- 11 percent cited managing my business day-to-day
- 3 percent identified language barriers
In addition, Hispanic entrepreneurs also were concerned about credit availability — (55 percent of Hispanic vs. 34 percent of non-Hispanic small business owners).
Regarding access to lending and credit availability, some of the survey results were surprising. Compared to their non-Hispanic peers, more Hispanic small business owners have applied for a bank loan at some point during the lifetime of their business (68 percent to 48 percent) and Hispanic entrepreneurs are nearly four times more likely to plan to apply for a loan in 2017 (35 percent to 9 percent).
At Imperial Advance, our lending programs in amounts ranging from $5,000 to $1 million are well-suited for all small business owners. Business term loans, merchant cash advances, revenue based financing, lines of credit and other lending solutions are available to help entrepreneurs plan for a successful 2017. Whereas traditional bank loans can take months to receive approval, not to mention tons of paperwork, alternative lending companies are able to approve and fund clients in as little as 24 hours.