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.
Inland Empire Regional Chamber of Commerce Welcomes Hawaii Chamber as Honorary Global Member
Empowering Future Generations: IERCC and Chamber of Commerce Hawaii Forge Partnership for Youth Development
In a landmark meeting that signifies the growing collaboration between regional chambers of commerce, the Inland Empire Regional Chamber of Commerce (IERCC) proudly welcomed the Chamber of Commerce Hawaii as an Honorary Global Member. This momentous occasion was marked by a ceremonial presentation led by Eddy Sumar, MBA, CCE, CICE, a distinguished member and Chair of the Education and Youth Skills Development Liaison at IERCC.
Eddy Sumar, renowned for his passionate advocacy for youth education and skill development, met with Sherry Menor-McNamara, CCE, President & CEO, and Tyler Hunt, Associate Vice President of Membership Services, of the Chamber of Commerce Hawaii. The meeting was not just a formal presentation but also an opportunity to share the innovative approaches IERCC is employing to champion youth development.
In a unique and inspiring gesture, the Chamber of Commerce Hawaii representatives were introduced to IERCC’s youth initiatives through a trilogy of educational books authored by Eddy Sumar himself. These books – “A Treasure Hunt With OTIS,” “The Hidden Dreams,” and “The Cutting Edge” – are a testament to Sumar’s dedication to empowering the youth. Each book addresses critical areas of youth development:
- “A Treasure Hunt With OTIS” provides wisdom to guide young lives.
- “The Hidden Dreams” unlocks the potential of identifying and pursuing youthful aspirations.
- “The Cutting Edge” offers vital insights into understanding credit and financial literacy.
Edward Ornelas, Jr., President & CEO of the Inland Empire Regional Chamber of Commerce, expressed his enthusiasm for this new partnership, stating, “This collaboration with the Chamber of Commerce Hawaii represents a significant step in our ongoing commitment to foster the leaders of tomorrow. By combining our resources and expertise, we can more effectively prepare our youth for the dynamic world they will inherit. Our shared vision for youth development and education is the cornerstone of this partnership.”
The Chamber of Commerce Hawaii expressed its enthusiasm for the collaboration, recognizing the value of the resources provided by IERCC. This partnership is a significant step towards a shared goal of fostering a brighter future for youth through education, skill development, and empowerment.
The Inland Empire Regional Chamber of Commerce is enthusiastically developing plans to launch a summer internship program exclusively for students from the Inland Empire, offering them the opportunity to travel to Hawaii for this enriching experience. This initiative, which stems from the IERCC’s recent collaboration with the Chamber of Commerce Hawaii, is focused on providing Inland Empire students with a unique opportunity to immerse themselves in the diverse business and cultural environment of Hawaii. The program aims to equip these students with invaluable hands-on experience in various industries, enhancing their skills and broadening their perspectives. This visionary approach underscores the IERCC’s dedication to fostering the professional and personal growth of its youth, preparing them for successful careers in an increasingly interconnected world.
The IERCC is committed to continuing these collaborative efforts and looks forward to a fruitful and impactful partnership with the Chamber of Commerce Hawaii, collectively striving to nurture the leaders of tomorrow.
Corona Factory Files Landmark Trade Secret Lawsuit in New Hampshire Federal Court
Leading Private Label Company Alleges Massive Data Breach by SGS North America, Inc., Threatening Millions in Investment and Profits
Amid a surge of corporate theft nationwide, U.S. Continental Marketing, Inc. has initiated trade secret litigation against SGS North America, Inc. alleging misappropriation of proprietary and confidential chemical formulations that may cost U.S. Continental millions of dollars.
The largest private label leather and fabric care company in the world, U.S. Continental operates out of a 100,000 square foot factory in Corona, California, and partners with popular footwear, fashion, and furniture brands such as Birkenstock, Timberland, and Michael Kors to develop a range of products. The company provides commercial packaging solutions as well.
In its complaint filed last week in the U.S. District Court for the District of New Hampshire, U.S. Continental alleges that earlier this year, it spent millions to develop five unique and secret chemical formulations for an unnamed customer for use on branded textiles. Those formulas were sent to SGS North America for independent testing. David Williams, U.S. Continental’s President, explains, “Leading up to its testing, we made very clear to SGS that the confidentiality of any and all information about our formulations was critical. Third parties, and even our customers, could not be privy to our proprietary data and SGS knew that.”
Williams added, “To put a finer point on the sensitivity of the formulations in question, we negotiated an ironclad NDA with SGS, which it signed, promising not to disclose confidential information related to our formulations to anyone without written approval.”
U.S. Continental’s complaint alleges that despite its assurances, SGS twice sent detailed, unredacted testing reports directly to the customer in August, revealing specifics about the chemical formulations SGS promised to keep under wraps.
According to Williams, “By virtue of SGS’s indiscretion, which one of its Vice Presidents cavalierly claimed was a ‘mistake,’ our customer was sent all the information it needed to manufacture essential chemical formulations on its own. That puts at risk the $2 million we invested in R&D, along with another $20 million or so in profits from our manufacturing agreement with the customer. It only gets worse from there if SGS discloses our proprietary information—which it refuses to return—to any others.”
Jeffrey Farrow, a partner at Michelman & Robinson, LLP, which represents U.S. Continental along with local counsel in New Hampshire, says, “It’s beyond crucial that trade secrets, like my client’s chemical formulations, be carefully safeguarded. By failing to do so, SGS breached its NDA—a breach that continues given that the data at issue has yet to be returned despite multiple requests from U.S. Continental. This is simply unacceptable and through this lawsuit, we want SGS to know that its unlawful disclosure of trade secrets, and unlawful retention of them, won’t go unchecked.”
The lawsuit is currently pending and U.S. Continental is awaiting a response from SGS.
Alibaba.com Partners with Inland Empire Regional Chamber of Commerce to Launch California Pavilion
In a landmark initiative, Alibaba.com, a global leader in e-commerce, has announced a strategic partnership with the Inland Empire Regional Chamber of Commerce (IERCC) to bolster business opportunities for Small and Medium-sized Enterprises (SMEs) in California. This historic collaboration is set to unveil the California Pavilion on Alibaba.com, a pioneering platform promoting the “Made in California” brand to a global audience.
Join us for a special event where Mattia Miglio, Director of North America Business Development at Alibaba.com, will introduce the California Pavilion alongside representatives from the IERCC. This digital hub is the first of its kind, designed to connect California’s SMEs with international buyers, importers, and distributors, marking a significant milestone in global business expansion.
This initiative sees the convergence of several key trade associations including the California Trade Alliance, California Hispanic Chamber of Commerce, and Valley Industry & Commerce Association, all coming together to transform the SME landscape in California.
As part of the California Pavilion, members will receive an exclusive membership package offering numerous benefits designed to elevate businesses to new heights. This initiative not only supports business growth but also aligns with Alibaba’s vision of empowering SMEs in the global market.
The Inland Empire Regional Chamber of Commerce stands as a pivotal partner in this venture. Known for its innovative approaches and customized support for businesses, the IERCC plays a crucial role in guiding enterprises in the Inland Empire, from startups to established companies.
“We are thrilled to partner with Alibaba.com in this groundbreaking initiative. The California Pavilion is more than just a digital platform; it’s a beacon of opportunity for small and medium-sized enterprises across California. This collaboration is a testament to our commitment to empowering local businesses, giving them the tools and exposure they need to thrive in the global marketplace. We believe that through this partnership, we can elevate the ‘Made in California’ brand to new heights and open doors for unprecedented growth and success for our members”, stated Edward Ornelas, Jr., President & CEO of the IE Chamber.
We invite businesses to explore the advantages of joining the California Pavilion. Learn how this platform can revolutionize your business prospects and connect you with the global market.
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