Latino-owned businesses have grown at twice the national rate, and a majority of Latino business owners plan to leave their businesses in the hands of their children, according to a new report.

Community and family are key ingredients for the success of Latino-owned businesses. Approximately 80 percent of Latino respondents indicated they intended to pass their business on to a family member, most likely a child, said a report published by The Massachusetts Mutual Life Insurance Company (MassMutual). However, 37 percent of respondents indicated that their decided successors may not know they've been selected to take on the business.

Latino entrepreneurs tend to be younger and they're more likely to consider their community when they make business decisions. Also, they're more likely to state that they pursued business ownership to take control of their lives, support their families and pursue the American dream. Nonetheless, many don't have the resources or knowledge to realize that dream.

"In Pursuit of the American Dream" is a new report that examines how failing to create a transition plan can present challenges for Latino business owner. Success for Latino business owners isn't only about short-term successes; it's about broader and prolonged support for families, friends and communities.

While the report found that Latino business owners are interconnected with their business and they feel a responsibility toward their family and communities, they sometimes lack the financial literacy and confidence to ensure that they can provide for their family and protect their dream after realizing it.

MassMutual prepared the report to highlight the unforeseen circumstances Latinos face when building and sustaining a business. Just half of Latino business owner drafted a plan to protect themselves in case an untimely death and far less have a buy-sell agreement prepared in the case of disability.

While Latino business owners are outpacing the general public, success planning can be a challenge. Only 50 percent of Latino business owners have any sort of succession plan in place, and 40 percent don't have any retirement savings planned outside of their business. Owners sometimes plan to continue receiving income from the business following retirement or they expect to use proceeds from the sale of their business to afford a retirement.

Latino entrepreneurs are more likely to say they plan to retire, but haven't thought much about it. Just 12 percent of respondents indicated they plan to retire within five years. Eighty percent of Latinos said they plan to leave the business to a relative or a friend, compared to 65 percent of the general population. Nine percent of Latinos would sell the business to a key employee, compared to 14 percent of the general population.

MassMutual conducted the study to better understand how Latinos business owners prepare for the future of their business, gauging how those businesses could fuel the American economy. It also created the report to spark a meaningful dialogue about long-term success and stability.

Related