The American financial system needs interaction with reliable and respected organizations such as Illinois Hispanic Chamber of Commerce (IHCC), to educate Hispanic small business owners to understand how access to the credit system works and what steps they need to take to grow their businesses in an orderly and efficient manner.
During the presentation of its annual 2020 Hispanic Business Owner Spotlight study in Chicago, Bank of America submitted the plans, challenges, and realities of Hispanic entrepreneurs across the country.
The study interviewed 1,400 Hispanic business owners throughout the country (companies with two and up to 100 employees, with annual revenues between $100,000 and $5,000,000).
Jaime di Paulo, President & CEO of IHCC, was invited to participate at the panel of experts who discussed the results of this important study which Bank of America has been conducting since 2016.
Plenty of Optimism
John Gomez, Senior Vice President, Los Angeles Region Executive, Bank of America Small Business, said he is convinced that Hispanic business owners need to place their bets on a better financial education.
Gomez praised the different programs drove by organizations like IHCC to begin from learning the basics to identifying when it’s time to grow an already consolidated business.
Jaime di Paulo emphasized that one of the objectives of IHCC is to teach entrepreneurs to “use the money of others.”
He insisted that entrepreneurs should not risk all their savings at the beginning of a small business because it can be fatal to their long-term stability.
2020 Hispanic Business Owner Spotlight
The Outlook remains strong for Hispanic entrepreneurs, exceeding that of their non-Hispanic peers.
• 89% of Hispanic entrepreneurs plan to expand over the next 12 months (vs. 68% of non-Hispanic entrepreneurs, and up slightly from 87% in 2019).
• 79% expect their revenue to increase in the year ahead, a four-year high (vs. 57% of non-Hispanic entrepreneurs, and up from 74% in 2019).
• 45% plan to hire in 2020 (vs. 24% of non-Hispanic entrepreneurs, and down from 51% in 2019).
• 78% plan to obtain financing over the next 12 months (vs. 49% of non-Hispanic entrepreneurs).
• The top three ways Hispanic entrepreneurs intend to obtain financing include tapping into personal savings (38%), applying for a bank loan (31%), and using personal credit cards (23%).
Growing requires education and support
“Hispanic entrepreneurs are entering the new decade on a high note, with many pursuing growth strategies – investing in both the year ahead and their long-term future,” said John Gomez. “Despite these strong forecasts, most Hispanic entrepreneurs continue to report obstacles to business growth. Bank of America is committed to partnering with Hispanic business owners to address these challenges and help fuel growth for their businesses.”
John Gomez insisted on how inspiring the results of the study are because they show that the Hispanic business community is fundamental to the growth of Chicago’s economy, as well as all the major cities in the country.
“When you say Latino, you think of music, food or joy. But Latinos want to be better known for our work, our optimism, and our ability to boost business,” said Jaime di Paulo.
Gomez asked small business owners first to seek to become members of their local Chambers of Commerce to receive that fundamental guide in the process of accessing fresh capital to drive an idea or grow a business.