In pursuit of the American Dream, many Hispanic immigrants come to the United States with the goal of one day opening their own business. Children of immigrants are also often entrepreneurial and seek to start companies that positively influence their communities, even if they launch their enterprise with little startup funding. According to the Pacific Coast Business Times, Hispanics don't only represent a fast-growing segment of the population - they're also a rapidly expanding group of business owners. The source estimated there are 700,000 companies owned by Hispanics in California alone.
Hispanics motivated to launch companies, but don't always have the resources
Not only is this demographic interested in running a company, its members also have different reasons for opening businesses, according to a study sponsored by Massachusetts Mutual Life Insurance Company (MassMutual). The report indicated 89 percent of Hispanics want to own their own firms to provide for relatives, compared with 77 percent of the general population, while 54 percent of these individuals want to benefit their local community, as opposed to 21 percent of the general population.
Even though they're eager to become entrepreneurs, many Hispanics struggle to get their companies off the ground and implement strong financial planning and cash management policies for the future. The MassMutual survey indicated 30 percent of Hispanic business owners claim they can barely keep up with current company expenses, let alone develop strategies for the future. Twenty-three percent aren't thinking about retirement, due to pressing financial problems, compared to only 16 percent of the overall population. This demographic may also struggle to receive business financing, due to insufficient knowledge - 18 percent of Hispanics are unsure of where to turn for financial help, while only 12 percent of all company owners said the same.
Getting the right assistance can be critical
Hispanic business owners, especially those who don't necessarily know how to obtain investment loans or are unfamiliar with SBA loans, may find it's easier and more helpful to work with a small or mid-sized local bank, as opposed to a large financial institution. As these entrepreneurs have different motives and goals for launching their businesses, they need unique and personalized business banking options that are tailored to their needs - and they're not likely to receive these services at the nation's largest banks. This makes small branches a stronger option for new entrepreneurs looking for financing or information on better small business banking options.