Hispanic Small Business Owners Set Sights on Significant Growth in 2018 and Beyond

New Bank of America Survey Finds Hispanic Entrepreneurs
Overwhelmingly Optimistic About What the Future Holds; Cite Heritage,
Technology and Community as Keys to Success

CHARLOTTE, N.C.–(BUSINESS WIRE)–Hispanic entrepreneurs are increasingly optimistic about the future –
what lies ahead in the next year and even the next decade to come – and
see their heritage as an important advantage to their success.

According to the second annual Bank
of America Hispanic Small Business Owner Spotlight
, surveying
Hispanic entrepreneurs nationwide, the majority believe the national
economy (60 percent) and their local economies (67 percent) will improve
in 2018 – much higher than their non-Hispanic counterparts (46 percent
and 48 percent, respectively).

Hispanic entrepreneurs are also more bullish on revenue and hiring in
the year ahead. Seventy-one percent believe their revenue will increase
in 2018, compared to just half of non-Hispanic small business owners.
They are also more than twice as likely to plan to hire more employees
in the year ahead (37 percent, versus 16 percent of non-Hispanic small
business owners).

“Hispanic small business owners expect robust economic growth, higher
revenue and increased hiring in 2018,” said Elizabeth Romero, Small
Business Central Division executive, Bank of America. “As one of the
fastest-growing segments of the small business sector, Hispanic
entrepreneurs also anticipate strong long-term growth, and are
leveraging digital tools, social media and their community to ensure
they continue to flourish in the evolving small business climate.”

These optimistic sentiments appear to extend well into the future.
Seventy-seven percent of Hispanic small business owners report growth
plans over the next five years, while only half of non-Hispanic
entrepreneurs cite the same. A strong majority (89 percent) also believe
the business environment for Hispanic entrepreneurs will strengthen in
the next decade.

Hispanic business owners see heritage as a key differentiator

While two-thirds of Hispanic small business owners believe they face
unique challenges, many say their heritage provides an advantage with
respect to:

  • Business growth (43 percent say their heritage helps, versus 16
    percent who say their heritage harms; 41 percent say it has no impact).
  • Customer development and retention (42 percent say it helps, versus 15
    percent who say it harms; 43 percent say it has no impact).
  • Networking (39 percent say it helps, versus 23 percent who say it
    harms; 38 percent say it has no impact).

Hispanic small business owners trailblazing in social media use,
reporting a positive impact on their bottom line

According to the survey, Hispanic entrepreneurs lead their non-Hispanic
peers by 20 percentage points in the use of digital tools to run their
business (93 percent, compared to 73 percent of non-Hispanics).
Three-quarters also report they are reliant on social media in running
their business, versus just 40 percent of their non-Hispanic
counterparts.

In addition, a solid majority of those Hispanic entrepreneurs who are
active on social media use it to connect with clients and peers –
including to market their business (78 percent, compared to 49 percent
of non-Hispanics), network (76 percent, compared to 46 percent of
non-Hispanics) and share updates with customers (74 percent, compared to
39 percent of non-Hispanics).

The heavy use is paying off, as 53 percent say social media engagement
has a positive impact on their bottom line (versus 29 percent of
non-Hispanic entrepreneurs), and 86 percent say the feedback they
receive on social media channels is important to the success of their
business (versus 47 percent of non-Hispanic entrepreneurs). Social media
is also helping Hispanic businesses get off the ground, with 66 percent
saying it was important when starting their business, versus 21 percent
of non-Hispanic small business owners.

Employee talent and in-person community networks driving success

Hispanic entrepreneurs value their employees as an integral part of
business success, and view in-person communities as a significant
contributor to business and professional growth.

Eighty-one percent of Hispanic small business owners believe their
ability to attract and retain quality employees directly impacts their
growth. Additionally, Hispanic entrepreneurs (87 percent) are much more
likely than their non-Hispanic counterparts (54 percent) to take
specific actions to reward and motivate their employees, including:

  • Forty-one percent provide employees flexible hours or the option to
    work remotely, compared to 34 percent of non-Hispanic small business
    owners.
  • Thirty-three percent offer employee perks, compared to 16 percent of
    non-Hispanic entrepreneurs.
  • Twenty-seven percent have employee reward or bonus programs, compared
    to 14 percent of non-Hispanic small business owners.

Sixty-four percent of Hispanic entrepreneurs rely primarily on in-person
interactions when connecting on matters relevant to their business
growth, while 36 percent prefer to connect virtually. Similarly, 59
percent of Hispanic business owners say they receive more support to run
their business from those in their physical community, while 41 percent
lean more on virtual communities.

For a complete, in-depth look at the insights of the nation’s Hispanic
small business owners, read the full 2018
Bank of America Hispanic Small Business Owner Spotlight
.

Bank of America Hispanic Small Business Owner Spotlight
GfK Public
Affairs and Corporate Communications conducted the Bank of America
Hispanic Small Business Owner Spotlight survey between August 8 and
September 28, 2017, using a pre-recruited online sample of Hispanic and
non-Hispanic small business owners. GfK contacted a national sample of
1,013 small business owners in the United States with annual revenue
between $100,000 and $4,999,999 and employing between 2 and 99
employees, as well as 394 interviews among Hispanic small business
owners, 149 of whom were primary Spanish speakers. The final results
were weighted to national benchmark standards for size, revenue, and
region, and, for the Hispanic augment, whether the respondents were
primarily English-speaking or Spanish-speaking.

Bank of America
Bank of America is one of the world’s leading
financial institutions, serving individual consumers, small and
middle-market businesses and large corporations with a full range of
banking, investing, asset management and other financial and risk
management products and services. The company provides unmatched
convenience in the United States, serving approximately 47 million
consumer and small business relationships with approximately 4,500
retail financial centers, approximately 16,000 ATMs, and award-winning
digital banking with approximately 35 million active users, including
approximately 24 million mobile users. Bank of America is a global
leader in wealth management, corporate and investment banking and
trading across a broad range of asset classes, serving corporations,
governments, institutions and individuals around the world. Bank of
America offers industry-leading support to approximately 3 million small
business owners through a suite of innovative, easy-to-use online
products and services. The company serves clients through operations in
all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto
Rico and more than 35 countries. Bank of America Corporation stock
(NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and
other important information, visit the Bank
of America newsroom
. Click here
to register for news email alerts.

www.bankofamerica.com

Contacts

Reporters May Contact:
Don Vecchiarello, Bank of America,
1.980.387.4899
don.vecchiarello@bankofamerica.com