Startups/Small businesses owned by Hispanic have soared since 2002, jumping from a plucky 1.7 million to a notable 3.2 million in just a decade. The Hispanic-owned small business rises at an annual growth rate of 7 percent, which is a four percent increase above all else, the general market. The Hispanic businesses owner in New York can attest to this growth, particularly in 2013. According to TD Bank, which pegs itself “America’s Most Convenient Bank®” and was named MoneyMagazine’s “Best Big Bank in America” for 2013, more than half of Hispanic small business owners in New York City met or exceeded their 2013 business goals, despite the nation’s rocky economic conditions.
The study was conducted between November and December 2013, and research was published earlier this month. The survey enlisted 700 Hispanic small business owners and decision makers, polling them as a representative group for small business owners from the New York City area.
TD’s program for monitoring small business growth, “TD Bank’s Small Business Pulse Check,” surveyed owners, requesting details about opportunities and challenges facing small business owners throughout the five New York City boroughs. Participants were asked to share insight on a number of topics, including the potential impact of Obamacare, hiring, and the influence of the economy on their business.
Thirty-nine percent of the business owners who were polled expressed belief that their business would increase in revenue and sales, or would at least stay the same in 2014. Fifty-six percent of Hispanic small business owners reported that they were on track to meet or exceed revenue goals for 2013; comparatively, less than 44 percent stated that they would fall short of their goals.
“The five boroughs are each unique and great places in which to do business. The TD Bank Small Business Pulse Check found that despite the individuality across the boroughs, Hispanic small business owners in New York City as a whole are experiencing the same opportunities and challenges,” said Vilma Vallejo, Vice-President and Store Manager of the TD Bank Jackson Heights/Northern Boulevard store. “We want Hispanic New York small business owners to know that we are here to help them manage those challenges and take advantage of the opportunities so they can succeed in 2014.”
Nationwide, 62 percent of Hispanic-owned business felt that the economy had an effect on their business, compared to 56 percent of the general market. Economic uncertainty (22 percent) ranked as the group’s top area of concern in 2014. While uncertain, 78 percent of Hispanic small business owners in NYC still expected the same revenue/sales or better in 2014. Only15 percent expected a reduction in revenue, and only 13 percent expect a reduction in staff.
Seventy-six percent of Hispanic-owned small businesses use credit cards or loans as a means of support, five percent less than the general market. And, these business owners are more likely to apply for loans or a line of cred in the coming year. Though, 74 percent reported that they had no loan or credit needs.
“At the start of 2013, Hispanic small business owners reported that access to credit had been one of their biggest challenges for the year,” said Vallejo. “TD Bank makes it possible to open aline of credit where a Hispanic small business owner also has a business checking account, business credit card and treasury management service making it truly convenient. This provides a one-stop approach and can help the business owner remain focused on the bottom line.”
Checking account usage is 11 percent lower for surveyed Hispanic business owners, with only 86 percent using checking account for business. Many use their saving accounts to secure their funds instead.
TD Bank’s research also revealed that increased cost of doing business (16 percent) and lack of access to capital (15 percent) are other major concerns for Latino business owners. Eighty-one percent of surveyed Latino owners claim that they will have continual financial balance or growth in the coming year; twenty-eight percent believe that the Affordable Care Act had a positive impact on their business, compared to 21 percent in the general market; and, the Bronx leads with most Hispanic-owned small business owners overall who’ve applied for a loan or line or credit within the past twelve months, or plan to in the near future.
Originally published in Latino Post.