Small Hispanic entrepreneurs in the United States anticipate a decade of robust expansion and growth in their businesses, with a brighter outlook than their non-Latino colleagues, according to a Bank of America report released Tuesday in Chicago.
The bank’s annual survey, called the Hispanic Approach of the Small Business Owners Report, included the opinions of 1,323 entrepreneurs across the country who anticipate their plans to expand over the next 12 months.
The vast majority (89%) of Hispanic entrepreneurs surveyed have plans to expand over the next 12 months, compared with 68% of non-Hispanics. In 2019, the growth expectation of the Latin sector was 87%, according to the bank’s study.
79% said they expect to increase their income this year, against 57% of non-Hispanics, and 45% plan to hire more staff in 2020, compared to 24% for non-Latinos.
In order to carry out these plans, 78% of the businessmen plan to seek financing, either using their savings (38%), through bank loans (31%) or even using their personal credit cards (23%).
“Hispanic entrepreneurs are entering a high point in the new decade, with many of them applying long-term growth and investment strategies,” said Elizabeth Romero, executive of the Central Small Business Division of Bank of America.
“Looking to the future, almost all the entrepreneurs consulted see a decade of opportunities ahead, with greater income, a better digital presence and expansion into new markets,” he said in the introduction of the report.
In Romero’s opinion, “it is inspiring” to see the optimism and continued success of Latino entrepreneurs in the United States, although he warned that, despite good forecasts, most of them still perceive obstacles in the way of growing their businesses.
For 63%, the main problem continues to be the cost of health coverage, followed by the political environment (59%), the strength of the dollar (59%), commodity prices (56%) and the rates of interest (55%).
Likewise, 72% highlight among their concerns the lack of resources, the lack of management experience and problems in accessing capital.
Jaime di Paulo, president of the Illinois Hispanic Chamber of Commerce, told Efe that Hispanics have to learn to “use the money of others” to do business.
“Since they don’t have a rich uncle to help them finance their businesses, they pawn the car, the house, use credit cards or funds saved for retirement, and that’s very risky,” he said.
Romero highlighted the bank’s willingness to partner with Hispanic entrepreneurs to face challenges and collaborate in their growth.
As reported, in 2019 Bank of America granted loans for $ 9.2 billion to small businesses, and maintained its position as the main creditor of the sector in the third quarter of last year, with individual loans of up to one million dollars.