A recently released Hispanic small business owner report1 showed that Hispanic small business owners are confident about their growth prospects and anticipate that revenue will increase some 71% in 2017. Seven six percent of Hispanic small business owners plan to grow their business over the next five years as compared to 55% of non-Hispanics owned businesses.
This national trend is reflected in Tucson and throughout Southern Arizona. Daily, our Chamber team meets with entrepreneurs that are launching new businesses and are expanding existing businesses. We have responded by increasing the number of business education courses that we host for members at our four Hispanic chambers in Southern Arizona and by highlighting small business lending options. Last year, our Chamber launched AZBizLoans.com in partnership with the Arizona Chamber of Commerce to meet the borrowing needs of those small businesses that were deemed too risky for the banks and credit unions. Businesses who are planning to grow need to hire employees and the Hispanic small business owner report indicated that 54% of Hispanic business owners plan to hire in 2017.
But, how difficult is it to borrow money for a small business in Southern Arizona today? National data shows that 35% of Hispanics business owners intend to apply for a loan in 2017 versus only 9% of non-Hispanic business owners. We also know that Hispanic owned businesses tend to be smaller on average around the country. This may be due to the fact that most Hispanic business owners start their business using personal savings and personal credit cards and relying on family and friends. As a business community, we need to continue to pay attention to lending challenges and how they impact our ability to scale our businesses and improve the economy of southern Arizona.
Hispanic small businesses rely heavily on their family for support more so than the general market. Family members often provide financial and operational assistance while also helping to run the business. They play an influential role in business decisions. Business owners should seek additional information on succession planning and the dynamics of running a family owned business as a tool to scaling their business in the future.
This information (and more) on the purchasing power at the Hispanic community will be featured in our 2017 Hispanic Market Outlook event on September 28th in Tucson. Our Hispanic Market Outlook report is a comprehensive Hispanic market research study that documents in more than 150 pages the economic impact of the Hispanic market. The data focuses on Pima County, Cochise County and Santa Cruz County and is not information that is readily available. The report and event is hosted in partnership with Telemundo who assists in the analysis of national data and provides local and regional numbers that we can utilize to grow our region. Register today at www.TucsonHispanicChamber.org to attend the Southern Arizona Hispanic Market Outlook on September 28th to learn about connecting with Hispanic owned businesses and the fast growing Hispanic market.
(SOURCE: 1 Bank of America, 2017 Hispanic Small Business Spotlight)
Lea Marquez Peterson is the President/CEO of the Tucson Hispanic Chamber, Sierra Vista Hispanic Chamber, Douglas Hispanic Chamber and the Ambos Nogales Hispanic Chamber. She can be reached at firstname.lastname@example.org.
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Our goal is to help member companies grow and prosper. We work to achieve this goal by advocating a pro-business agenda in Tucson and connecting members with business leaders and policy makers. How? With Networking & educational events, and online initiatives — like this blog.