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Hispanic Entrepreneurs Bullish on 2020 Business Outlook, With Revenue Projections Rising to Four-Year High

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Nine in 10 Plan to Grow their Business in the Decade Ahead

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, according to the fourth annual Bank of America Business Advantage 2020 Hispanic Business Owner Spotlight.

The annual study based on a survey of more than 1,000 entrepreneurs across the country reveals:

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

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

“Hispanic entrepreneurs are entering the new decade on a high note, with many pursuing growth strategies — investing in both the year ahead and their long-term future,” said Elizabeth Romero, Small Business Centralized Client Management and Specialty Support executive, Bank of America. “Despite these strong forecasts, most Hispanic entrepreneurs continue to report obstacles to business growth. Bank of America is committed to partnering with Hispanic business owners to address these challenges and help fuel growth for their businesses.”

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

A strong majority of Hispanic business owners (92%) believe the small business environment will strengthen for their community over the next five years, and 90% 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%), prioritizing the digital presence of their business (45%), expanding into new markets (34%), significantly increasing staff (30%), and automating business operations (29%).

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

  • 62% of Hispanic entrepreneurs are confident their local economy will improve in the year ahead (vs. 52% of non-Hispanic entrepreneurs, and down from 68% in 2019).
  • 53% are confident the national economy will improve over the next 12 months (vs. 49% of non-Hispanic entrepreneurs, and down from 59% 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%), 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%), strength of the U.S. dollar (59%), commodities prices (56%), consumer spending (56%) and interest rates (55%).
  • Compared to their non-Hispanic peers, Hispanic entrepreneurs expressed notably greater concern around commodities prices (56% of Hispanic entrepreneurs vs. 43% of non-Hispanic), credit availability (50% of Hispanic vs. 36% of non-Hispanic) and climate change (45% vs. 34%).

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

A sizeable majority of Hispanic entrepreneurs (72%) report that efforts to grow their business face distinct challenges, citing lack of resources (21%), lack of expertise in back office management (21%) and challenges accessing capital (20%) as the top three barriers.

For an in-depth look at the insights of the nation’s Hispanic small business owners, read the full Bank of America Business Advantage 2020 Hispanic Business Owner Spotlight.

Providing a business advantage to small business owners

Bank of America provides advice, solutions, access to capital and dedicated support to meet the unique needs of our 12 million small business owner clients. We originated $9.2 billion in new loans to small business clients in 2019, up 7% from 2018. According to the FDIC, Bank of America also maintained its position as the nation’s top small business lender at the end of the third quarter of 2019, with $37.6 billion in total outstanding small business loans (defined as business loans in original amounts of $1 million and under), up 8% year over year. In 2019, Bank of America booked more than 339,000 low- and moderate-income (LMI) loans totaling $6.3 billion, which was more than half of the company’s total small business lending. The company is a top lender in the SBA’s 504 and 7(a) programs, and a leading investor in community development financial institutions (CDFIs) – with a portfolio of nearly $1.6 billion invested across the U.S., of which, nearly $400 million is invested in CDFIs focused on U.S. small businesses.

Serving the Hispanic-Latino community

Bank of America is proud of its long-standing commitment to creating a diverse and inclusive environment for our employees and supporting diverse customers, communities and businesses around the world. We currently serve 9.5 million Hispanic-Latino clients, and more than 1 million Hispanic-Latino business owners. By the end of 2019, Bank of America had more than 2 million users on its Spanish language mobile app, growing by more than 20% year over year. Additionally, nearly two-thirds of Bank of America financial centers are staffed by employees with bilingual capabilities, and more than 4,000 multilingual teammates staff our financial centers located in LMI areas.

Bank of America Business Advantage 2020 Hispanic Business Owner Spotlight
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 among 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.

The full report can be viewed/downloaded here.

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 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,800 lending centers, 2,600 financial centers with a Consumer Investment Financial Solutions Advisor and 2,000 business centers; approximately 16,800 ATMs; and award winning digital banking with approximately 38 million active users, including approximately 29 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 across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.

Business

CBRE Opens Newly Renovated, Tech-Enabled Office in the Inland Empire

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The office is designed to support hybrid work and employee wellbeing

CBRE announced the opening of its new 10,159-sq.-ft. office suite on the ground floor of 4141 Inland Empire Blvd., in Ontario, Calif.

The office is part of CBRE’s Workplace360 program, which features innovative office designs and functionality, including in-office technology and a wider variety of collaborative spaces designed to support hybrid working. CBRE launched its Workplace360 program over a decade ago in its downtown LA office. Since then, the company has opened more than 100 Workplace360 offices worldwide, continually updating the program as work habits have changed over the years, especially with the increase in hybrid work.

“Our newly renovated space provides us with a great opportunity to deliver a collaborative, experience-driven workplace that supports hybrid work,” said Ian Britton, managing director and market leader for CBRE in Inland Empire. “Our Workplace360 office will also serve as a showpiece to help clients conceptualize flexible work strategies for their employees.”

The renovated office has several different work areas including focus, huddle, living, and conference rooms. The open-space lobby, known as the “Heart,” features a variety of seating and a communal space for collaboration. A large 86” media display with a speaker system welcomes employees, visitors, and clients and assists with onsite events.

New office technology, including touch-enabled video conference rooms, allows for hybrid work collaboration between in-office and remote employees and clients. Additionally, the Mt. Baldy conference room has Liquid Galaxy, a geospatial visualization platform set across large format curved screens providing a cinematic presentation experience. This room has an operable wall that opens to the Heart, creating an onsite event space.

A cornerstone of the Workplace360 model is its free-address approach, in which there is no dedicated seating. The free-address approach allows employees who are in the office on a given day to use any workstation or office.

The office’s design led by CBRE Design Collective, took inspiration from the Inland Empire’s orange groves and mountainous landscapes of Mt. Baldy. Images of Route 66 from local photographer VC Torneden features the role the highway plays in the area. 

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Local Veteran and His Family Open New Graze Craze Charcuterie Business in Murrieta, California

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Southern California wine country gets another stylish culinary option, offering beautifully designed, hand-crafted grazing boards and picnic boxes

Graze Craze® has opened a new location close to the wine country of Southern California, where its artfully arranged sweet and savory grazing boards and boxes create a perfect pairing for food lovers. Located at 24530 Village Walk Place, Suite C, in Village Walk Plaza, the 1,021-square-foot store is owned and operated by disabled veteran Chris Stout and his wife, Stephanie Stout, with assistance from their teenage children.

At Graze Craze, highly trained experts known as Grazologists™ skillfully design charcuterie arrangements that feature an assortment of fine ingredients perfect for grazing, like fresh fruits and vegetables, premium meats and cheeses, artisanal sweets, nuts, house-made jams and more.

Chris Stout enlisted in the U.S. Navy in 2001 and served several deployments before being discharged in 2012. Since then, he has worked as a field service engineer for an electronics company and in manufacturing sales. Stephanie Stout has a bachelor’s degree in business accounting from the University of Phoenix and worked for an insurance broker before the couple’s first child was born; she then devoted herself full-time to raising their three children, who are now in high school.

Graze Craze charcuterie boards offer something for every lifestyle, dietary preference or palate and are available in a variety of size options to cater to any occasion, big or small. They incorporate a medley of flavors, like the fan-favorite Gone Grazey board, a perfectly balanced mix of cured meats, premium cheeses, crackers, fresh produce, nuts and more. The Vegegrazian is impeccably designed with a plethora of fresh fruits and vegetables for anyone embracing a plant-based lifestyle. Those with an undeniable sweet tooth can enjoy the Sweet & Grazey, a hand-crafted board featuring an abundance of delectable desserts like chocolates and baked goods paired with sweet dips to accent the irresistible flavors.

New to the Graze Craze menu is the Brunch Board, a gourmet and innovative twist on any morning routine. Packed with breakfast meats, fresh fruits, eggs, pastries and more, this board is the perfect bagel-and-donut brunch alternative. Grazers can also tackle watch-party cravings with a seasonal Game Day Board, featuring a feast of

crowd-pleasing ingredients, like peppered salami, Italian prosciutto, goat cheese, cranberry walnut bread, raspberry jam and chocolate bark, to name a few.

The artisan-inspired charcuterie offerings at Graze Craze are available in different size options, from Char-Cutie-Cups and Picnic Boxes for nibbling to sharing-size boards with enough fresh food to feed a large party. The food displays are ideal for elevating work meetings, family gatherings, lavish events and more, while they also make for memorable gifts that impress.

Besides sharing the flavorful menu with the area, the Stouts are actively involved in numerous local school, business and community organizations. The pair supports the Murrieta Valley High School Marching Band Boosters and California High School Rodeo Association District 8, in addition to the Boy Scouts of America California Inland Empire Council and Friends of Temecula Troop 309, where Christopher Stout is a part of the adult leadership team. The couple has also worked with Homes For Our Troops, an impactful nonprofit organization that builds specially adapted homes for post-9/11 disabled veterans.

Graze Craze Murrieta is open for pick-up, catering and free local delivery Monday through Saturday from 9 a.m. to 6 p.m. and Sunday from 10 a.m. to 2 p.m. For more information, call 951-942-7293.

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Partners in Action: How CalOSBA is bridging the gap in funding and resources for Inland Empire small businesses

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By Josaline Cuesta, California Program Director, Small Business Majority & IEBJ Content Contributor

For Tara Lynn Gray, Director of the California Office of the Small Business Advocate (CalOSBA), entrepreneurship has always been a core principle of her life. Her journey as an advocate for small businesses wasn’t built on textbooks, but on her family’s roots in small business ownership. As a young girl, she watched her grandmother empower and elevate Black women’s presences by styling their hair and instilling confidence in their personhood. She witnessed the direct impact of small businesses on community members in real time, and that’s always stayed with Tara.

As a key partner of Small Business Majority, she stands as a champion for the dreamers and risk-takers; the pillars of the communities across California and in the Inland Empire. I chatted with her to share more about her work at CalOSBA, what entrepreneurs can expect when they meet with a CalOSBA advisor, and the resources and community support available to help boost entrepreneurship in the Golden State.

Tell us about CalOSBA’s role in the small business community.

“California has the biggest small business community in the country, accounting for 4.1 million small businesses in 2023 alone. The overwhelming majority have no employees at all, except themselves, which means they don’t have a Board of Directors, expensive consultants, and they definitely don’t have lobbyists. I take my role as their advocate seriously, talking with and listening to small business owners from up and down the state. During the pandemic, we were under a very bright spotlight, administering nearly $5 billion in direct relief funding and we’re proud of the grant programs we still oversee. But that’s only a small part of what we do at CalOSBA.

My team connects small business owners to information and resources to help them get started, manage their business and, most importantly, to grow. If they’re looking for help, we want to be the first door they knock on. In addition, we offer Outsmart Disaster training, which focuses on how to mitigate risks associated with natural disasters and recovery avenues available to them. I always say the flagship of our office is our support for the statewide network of Small Business Centers, providing 1:1 business assistance and training for small business owners of all industries and in dozens of languages. In addition, supporting partners that deliver these services–all the federally funded centers like the Small Business Development Centers and the Women’s Business Centers but also Chambers of Commerce and other nonprofits—is a core function of my office. And a big source of pride because we know what a difference they make for their clients.”

What can small business owners expect from meeting with a California Small Business Center advisor?

“Small business owners can expect to meet someone who is fully invested in them. Our Centers cover the full spectrum of business needs, from writing a business plan and obtaining the right permits and licenses, to finding capital, planning a succession strategy and marketing to e-commerce. Our business advisors provide the experience and the objective perspective to help business owners optimize their best assets: ideas, energy, and ability to keep adapting and learning. And they do it because they love helping other people succeed. What’s more, business ownership can become isolating and it may be challenging for entrepreneurs to find assistance. But they don’t have to go at it alone–and they shouldn’t, when these no-cost and low-cost services are available to them.”

What’s the most rewarding part of your role at CalOSBA?

“I always say I have the best job in the state. And it’s because I frequently have the honor to watch someone’s dream come true. I love a ribbon-cutting ceremony–Every time, big or small. It means someone dreamed of accomplishing something and worked hard for it: They opened the doors to their business, they made a sale, and hopefully they will hire their first employee and then it’s off to the races. But no matter what happens to that business, that ribbon-cutting is a milestone they made happen for themselves. There are many other events I get invited to, where you can just see the hope and pride, and even fear in their faces. I’m often overwhelmed by the sheer emotion of it, and I’m always humbled that I get to participate in that person’s big milestone.”

What are some new programs that can benefit small business owners in the Inland Empire?

“The number one question my office gets asked is how to access small business financing. To help address this key need, we’re launching the Technical Assistance for Capital Readiness program this February. The program is part of a bigger effort to fill well-known funding gaps in the state to benefit very small businesses and Socially and Economically Disadvantaged Individuals (SEDI). Through investments from the U.S. Treasury, the State Treasurer’s Office and IBank, the program is going to support lenders to facilitate “high risk” loans that they normally would not approve.

In addition to supporting lenders, my office also received $25.3 million in U.S. Treasury funding to start the new Capital Readiness network. The Capital Readiness Coaches in this network will help business owners get ready for the lending marketplace, help them make the best choices in a high interest-rate environment, and optimize the use of the capital once they receive it. The network is also designed to help spread the word about this opportunity to these SEDI-owned businesses, and some of those partners will be focused on supporting the Inland Empire small business ecosystem.”

How can business owners get in touch with CalOSBA?

“That’s simple! Check out calosba.ca.gov and sign up for our monthly newsletter, where I write a column and showcase success stories from our network, along with deadlines and updates on grant and workforce support programs. We’re also on social media, so I would encourage business owners to check out all of our channels.”

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