U.S. Hispanic business owners are overwhelmingly optimistic about how their businesses are doing in the coming year, with 43 % expecting to hire new employees, according to a study released by Bank of America.
As part of the celebration of Hispanic Heritage Month (Sept. 15-Oct. 15), Bank of America released its “2021 Hispanic Business Owner Spotlight” report, which analyzes trends among entrepreneurs in the community.
The study notes that over the past few months there has been a very significant improvement in expectations for the future among Hispanic business owners.
While last fall they were cautious about the evolution of the pandemic, now, with the progress of the vaccination and the reopening of businesses, their prognosis for the economy in general and their businesses is far more encouraging.
Around 81 % of those surveyed expect their business revenues to increase next year (a figure that was only half that in 2020); 74 % believe their local economy will improve; and 64 % think the economy of the country as a whole will improve.
In addition, the percentage of Hispanic employers who plan to hire more people over the next few months has gone from 25 % at the end of 2020 to 43 % today.
“We have seen the tremendous resilience of Hispanic entrepreneurs during the pandemic and are committed to supporting them during Hispanic Heritage Month and beyond,” said Bank of America Small Business Chief Sharon Miller.
Support from financial institutions will be key to turning the widespread optimism among Hispanic entrepreneurs into growth and business opportunities, as only 25 % of them say they are in a “strong” financial situation.
Of the rest, 15 % say they are in a “bad” financial situation and 60 % admit that their finances are just enough to get the business off the ground.
Nearly half of the respondents (49 %) plan to take out a bank loan or open a line of credit this year, money they will spend primarily on three objectives: marketing and business promotion (41 %), investing in their work teams (35 %) and creating or modifying the products their companies use (34 %).
The survey commissioned by Bank of America was conducted between March 11 and May 1, 2021 by surveying 300 U.S. Hispanic small business owners with annual sales between $100,000 and $4,999,999 and between two and 99 employees.