Bank of America Small Business Owner Report

The Bank of America Business Advantage Hispanic Business Owner Spotlight is an annual study conducted by Bank of America exploring the goals, challenges and everyday realities of Hispanic small business owners nationwide.

Now in its fourth iteration, the report continues to look at evergreen topics on the evolving small business landscape, including economic outlook and concerns, growth and revenue projections, as well as hiring and expansion plans. This iteration also explores barriers Hispanic entrepreneurs face when growing their business and goals for the decade ahead.

Key insights from the 2020 Hispanic Business Owner Spotlight include:

U.S. Hispanic small business owners anticipate a decade of robust expansion and growth, expressing a brighter business outlook than their non-Hispanic peers in the year ahead.

Outlook remains strong for Hispanic entrepreneurs, exceeding that of their non-Hispanic peers.

  • 89 percent of Hispanic entrepreneurs plan to expand over the next 12 months (vs. 68 percent of non-Hispanic entrepreneurs, and up slightly from 87 percent in 2019).
  • 79 percent expect their revenue to increase in the year ahead, a four-year high (vs. 57 percent of non-Hispanic entrepreneurs, and up from 74 percent in 2019).
  • 45 percent plan to hire in 2020 (vs. 24 percent of non-Hispanic entrepreneurs, and down from 51 percent in 2019).
  • 78 percent plan to obtain financing over the next 12 months (vs. 49 percent of non-Hispanic entrepreneurs). The top three ways Hispanic entrepreneurs intend to obtain financing include tapping into personal savings (38 percent), applying for a bank loan (31 percent) and utilizing personal credit cards (23 percent).

 

Hispanic entrepreneurs see the 2020s as a decade of opportunity.

  • 92 percent of Hispanic business owners believe the small business environment will strengthen for their community over the next five years.
  • 90 percent have set ambitious goals to advance or grow their business in the new decade.
  • Specifically, their top five goals over the next 10 years include: significantly increasing revenue (57 percent), prioritizing the digital presence of their business (45 percent), expanding into new markets (34 percent), significantly increasing staff (30 percent), and automating business operations (29 percent).

 

Hispanic entrepreneurs still bullish, yet confidence in the economy is down slightly year over year.

  • 62 percent of Hispanic entrepreneurs are confident their local economy will improve in the year ahead (vs. 52 percent of non-Hispanic entrepreneurs, and down from 68 percent in 2019).
  • 53 percent are confident the national economy will improve over the next 12 months (vs. 49 percent of non-Hispanic entrepreneurs and down from 59 percent in 2019).

 

Economic concerns decline, yet remain elevated over their non-Hispanic counterparts.

  • Health care costs remain the most worrisome economic issue for Hispanic entrepreneurs (63 percent), though concern fell to the lowest level since the survey began in 2017.
  • Other top concerns of Hispanic business owners in 2020 include the political environment (59 percent), strength of the U.S. dollar (59 percent), commodities prices (56 percent), consumer spending (56 percent) and interest rates (55 percent).
  • Compared to their non-Hispanic peers, Hispanic entrepreneurs expressed notably greater concern around commodities prices (56 percent of Hispanic entrepreneurs vs. 43 percent of non-Hispanic), credit availability (50 percent of Hispanic vs. 36 percent of non-Hispanic) and climate change (45 percent of Hispanic entrepreneurs vs. 34 percent of non-Hispanic).

 

Hispanic business owners cite lack of resources, lack of expertise and access to capital as top barriers.

  • 72 percent of Hispanic entrepreneurs report that efforts to grow their business face distinct challenges.
  • The top three barriers include: lack of resources (21 percent), lack of expertise in back office management (21 percent) and challenges accessing capital (20 percent).

 

Report Methodology
Ipsos conducted the Bank of America Hispanic Business Owner Spotlight survey online between July 19 and September 6, 2019, using a pre-recruited online sample of Hispanic and non-Hispanic small business owners. Ipsos contacted a national sample of 1,323 small business owners in the United States with annual revenue between $100,000 and $4,999,999 and employing between two and 99 employees, and conducted 428 interviews of Hispanic small business owners. The final results were weighted to national benchmark standards for size, revenue, and region, and, for the Hispanic segment, whether the respondents were primarily English-speaking or Spanish-speaking.

 

News Releases and Additional Information

Press Releases

Spring 2019 Small Business Owner Report Regional Press Releases
     -   Atlanta       -   Los Angeles
  -   Boston   -   Miami
  -   Chicago   -   New York City
  -   Dallas/Fort Worth   -   San Francisco (Bay Area)
  -   Houston   -   Washington, D.C.

 

Fall 2018 Small Business Owner Report Regional Press Releases
     -   Atlanta       -   Los Angeles
  -   Boston   -   Miami
  -   Chicago   -   New York City
  -   Dallas/Fort Worth   -   San Francisco (Bay Area)
  -   Houston   -   Washington, D.C.

 

Spring 2018 Small Business Owner Report Regional Press Releases
    -   Atlanta      -   Los Angeles
  -   Boston   -   Miami
  -   Chicago   -   New York City 
  -   Dallas/Fort Worth   -   San Francisco (Bay Area)
  -   Houston   -   Washington, D.C.

 

 

Presentation and Materials

[Note: If you experience document loading issues in Internet Explorer 11, please open the link in a different browser (e.g., Chrome, Safari, Firefox).]

Feb. 26, 2020 — 2020 Hispanic Business Owner Spotlight

Dec. 4, 2019 — Fall 2019 Bank of America Small Business Owner Snapshot

Oct. 2, 2019 — 2019 Bank of America Women Business Owner Spotlight

Apr. 30, 2019 — Spring 2019 Bank of America Small Business Owner Report
 

Mar. 5, 2019 — 2019 Bank of America Hispanic Small Business Owner Spotlight
 

Dec. 3, 2018 — Fall 2018 Bank of America Small Business Owner Report

 

Executive Biographies

Sharon Miller, Small Business executive, Bank of America

 

For More Information

For more information about the Small Business Owner Report, please contact Don Vecchiarello, Bank of America, 1.980.387.4899