Hispanic Business Owners Cite Passion, Pride and Control as Motivating Factors
Entrepreneurship is rooted in Latino cultural values. Starting businesses allows Latinos to explore their passions, create more jobs within their communities and gain more control and flexibility.
Hispanic entrepreneurs have had exceptional growth across America. Between 1990 and 2012, the number of working ageHispanic entrepreneurs tripled, increasing at almost 10 times the rate of the overall U.S. population.
Most Latinos cite passion (74 percent) as well as pride (50 percent) as reasons they've started their own business, according to a recent survey of Hispanic small business owners. But the core reason for becoming a business owner is control and flexibility (92 percent) and it drives their happiness (61 percent). The control and flexibility that's gained from working independently is the reason why of half of the Latino entrepreneurs surveyed began their businesses.
"Many Hispanic small business owners want control of their work hours, and to be independent," said Jay DesMarteau, TD Bank's Head of Small Business, in a press release. "Understanding this mindset is important in ensuring we provide the most convenient banking products and services to get them on a path to success in their business."
More Hispanic small business owners (28 percent) believe that taking risks is a driver of happiness, exemplifying the "high risk, high reward" attitude present in many Latino entrepreneurs.
Hispanic business owners look forward to talking to clients and customers (60 percent), and many believe that they should be doing it more (39 percent). Half of the owners surveyed love fulfilling product orders and services, and more than 53 percent said that they should do more to market their business. At the same time, bookkeeping (44 percent), banking and handling finances (23 percent each) are the least favored tasks, though those are the most valuable if hoping to maintain a longstanding business.
Entrepreneurs who develop financial plans, start small, save as much as possible and work closely with trusted financial partners tend to feel more prepared and comfortable when developing a new business. This is particularly important because more than 52 percent of Hispanic small business owners reported being sole proprietors, and management (25 percent) money and finances (22 percent) and business growth (22 percent) worry them the most late at night.
When in doubt, 41 percent of Hispanic small owners seek out advice online, and 39 percent seek out advice from friends and family. Technology and family are also valuable resources when raising money or crowd funding. Additionally, technology is essential when juggling office management tasks, mobile tools, time tracking, billing, creating loyalty and rewards programs, marketing and advertising.
The small business survey was administered by TD Bank, and it was conducted among a nationally representative group of small business owners at the end of April 2014. The bank employed the global research company Angus Reid Public Opinion to reach out to 508 individuals with small businesses of $5 million or less in revenue, and 100 employees or less.