Hispanic entrepreneurs are one of the fastest-growing segments of the small business sector, making contributions to the economy and job creation like never before. And, a new study has revealed Hispanic small business owners are excited about their prospects this year (2017).
According to the inaugural Bank of America 2017 Hispanic Small Business Owner Spotlight, 71-percent of Hispanic entrepreneurs expect their revenues to increase. That’s 20 percentage points higher than that of non-Hispanic entrepreneurs (51-percent).
In order to more acutely understand the unique experiences and perspectives of this group,
Bank of America surveyed approximately 300 Hispanic small business owners from across the U.S. about issues ranging from their economic and business outlooks for 2017, to their views on lending and the role that their communities have in the success of their businesses.
“The results of our survey tell a story of optimism for these business owners– in both the growth prospects of their business and the direction of the economy,” notes Elizabeth Romero, Small Business Central Division executive, Bank of America.
More than half (54-percent) of Hispanic business owners are planning to hire more employees over the next 12 months. By contrast, only 24-percent of non-Hispanic counterparts are planning to hire this year.
Expectations of Hispanic Entrepreneurs Overwhelmingly Positive
Hispanic small business owners maintain optimism even as they express concern over a number of economic factors – such as corporate tax rates, interest rates and credit availability. And it’s not just 2017 Hispanic entrepreneurs are feeling hopeful about, as 76-percent of respondents are planning to grow their businesses over the next five years. Their expectations to hire and apply for a loan in the year ahead greatly outpace those of non-Hispanic entrepreneurs, potentially indicating they are poised to continue driving local job creation and economic growth in a significant way.
Romero explains, “They see opportunity for themselves, as well as their families, and are leveraging personal networks and communities to help them realize their dreams. Even in the face of the same challenges and economic concerns that affect all small business owners, they are proving to be not only resilient, but incredibly bullish about their future plans and prospects for success.”
But Some Concerns Persist
While they are confident about business growth, Hispanic entrepreneurs continue to be worried about some of the challenges they face.
According to the report, 23-percent of Hispanic small business owners find maintaining a work-life balance to be their biggest challenge. This is followed by concerns over finding qualified employees (19-percent).
Other challenges include understanding business regulations and policies (17-percent) and accessing loan funding (17-percent).