Hispanics are starting businesses at a faster rate than the national average across several industries, growing 34 percent over the last ten years compared to just one percent for all other small businesses. Addressing the barriers that exist for Hispanic small businesses is the first step in understanding what financial resources and tools are necessary for them to achieve solvency. This is critical for the long-term prosperity and overall economic empowerment of this community. From lack of access to funding to limited awareness of business financial tools and resources, what stands in the way of success for Hispanic small businesses is clearly outlined in a recent Small Business Insights report by Intuit® QuickBooks®.
Lack of access to financing and loans
Hispanic small business owners typically tap into their own savings or obtain financial support from friends or family to start their businesses. According to the report, 95% of Hispanic small business owners said it was important to save up their own money before starting a business as a safety-net for business and personal expenses. Almost 62% had financial support from friends or family.