Bank of America report projects robust business growth for Latino entrepreneurs
The Hispanic Business Owner Spotlight explores the realities of Hispanic business owners nationwide.
Each year since 2017, Bank of America has released its annual Hispanic Business Owner Spotlight, which is a study that explores the goals, challenges and everyday realities of Hispanic entrepreneurs across the country.
This year’s findings included:
- Hispanic small business owners anticipate a year of robust growth
- Revenue projections reaching a four-year high
- Plans to expand, hire and obtain financing remain high from 2019
- A more bullish outlook on their local economies and the national economy compared to their non-Hispanic peers
- Concern over many major economic issues remain flat or have declined
In the past year, Hispanic businesses have generated as much as $700 billion in revenue to the U.S. economy.
"They're the most optimistic, fastest-growing demographic of entrepreneurs. ... They’re a big part of the thriving economy," John Gomez, senior vice president and Small Business Region executive at Bank of America, told FOX Business.
According to the study, the top goals for Hispanic entrepreneurs looking ahead to the 2020s include significantly increasing revenue, prioritizing their digital presence, and expanding into new markets.
Revenue projections have reached a four-year high at 79% — a 5% increase from 2019. In addition, 78% of Hispanic-owned businesses stated plans to obtain financing in 2020 to supplement their growth plans.
Most Hispanic entrepreneurs (about 72%) have expressed challenges in growing their business — particularly in finding necessary resources and accessing capital — and the numbers show that Hispanic business owners are looking towards a decade of opportunity ahead.
“It is inspiring to see Hispanic entrepreneurs’ continued optimism and success,” Elizabeth Romero, Small Business Client & Franchise Solutions Executive, said in a statement.
Other goals for Hispanic business owners through the 2020s include significantly increasing their staff and automating business operations.
The 2020 Bank of America Hispanic Business Owner Spotlight survey was conducted online between July 19 and September 6, 2019. It included a national sample of 1,323 small business owners in the United States with annual revenues between $100,000 and $4,999,999 and employing between two and 99 employees, as well as 428 interviews with Hispanic small business owners.
A total of approximately 300 small business owners were also surveyed in 10 target markets: Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Miami, New York, San Francisco, and Washington, D.C.