U.S. Hispanics: Challenges When Starting a Business
- Business Immigration
- Individual Immigration
Most Hispanic small businesses in the United States have started operations thanks to a family member or friend being able to give them a loan or financing to start the business.
Hispanics living in the United States face major challenges when deciding to start a business, from lack of financing to not knowing how to use certain tools to open a small business.
Hispanics are the population group that are starting a business at a faster rate than the national average, growing by more than 34% in recent years.
Intuit QuickBooks report “Small Business Insights” reveals top challenges faced by U.S. Hispanics
Main challenges of Hispanic entrepreneurs:
- Lack of funding:
The report notes that 95% of Hispanic entrepreneurs mention that it is necessary to save their own money before starting a business in the United States. Hispanic entrepreneurs have faced a lack of loans and financing.
About 62% had to apply for a loan from a family member or friend to start their business due to the difficulty in obtaining traditional credit, however, they expect that in the future access to financing and obtaining external resources will be increasingly simple.
- Limited knowledge of financial management
For most Hispanics, getting paid, paying a bill and paying taxes are challenging. According to the study, these procedures still represent a great challenge for 74% of Hispanics who have started a business.
The cash flow review is not understood for 69% of Hispanics. This process is critical to making decisions about a company’s future, paying off debt, or investing in new equipment.
- Restricted Use of Banking and Credit Cards
The study also reveals that only 25% of Hispanic businesses in the United States have a corporate credit card compared to 41% of small businesses that are non-Hispanic.
In addition, 51% of Hispanic small businesses have a business bank account compared to 59% of other businesses.
Source: Rivera, R. (2021, August 14). Hispanics in the United States: The most common challenges they face when starting a business. La Opinion. https://laopinion.com/2021/08/13/hispanos-en-estados-unidos-los-retos-mas-comunes-que-enfrentan-al-iniciar-un-negocio/