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.
Saybridge Technologies’ Board of Directors Announces Byron J. Paul as CEO
The SyBridge Technologies’ Board of Directors is pleased to announce that Byron J. Paul has joined SyBridge Technologies (“SyBridge” or the “Company”) as Chief Executive Officer and will also serve as a member of the Board of Directors. Mr. Paul will build upon the Company’s strategic vision of becoming a global technological leader in value-added design and manufacturing solutions ranging from design and prototyping to production-as-a-service and aftermarket services for customers. Mr. Paul brings extensive experience in industrial technology and a 20+ year track record of driving profitable growth in complex, global enterprises.
Mr. Paul was most recently Group President at Signode Industrial Group where he led a global portfolio of businesses focused on end-of-line packaging technologies and warehouse automation solutions. He previously served as President of Destaco, a leading designer and manufacturer of precision engineered components for industrial automation and robotics applications. Mr. Paul has also held senior leadership roles at John Crane, a leader in rotating equipment solutions, and at the Boston Consulting Group. Mr. Paul holds an MBA from the Kellogg School of Management at Northwestern University and a Master of Public Administration from Harvard University’s Kennedy School of Government. He also attended the University of Western Australia where he earned a Bachelor of Commerce with first class honors in accounting and finance.
Mr. Paul stated, “I am thrilled to be joining a world-class team at SyBridge Technologies. They have done an outstanding job expanding SyBridge Technologies’ global reach, growing from three sites in 2019 to 16 locations today. I look forward to partnering with the Board and Crestview Partners as we embark on the next phase of growth to build an unrivaled leader in digital manufacturing.”
Jason Luo, Chairman of SyBridge Technologies and Crestview Operating Executive noted, “Byron is a committed leader with a proven track record of successfully growing businesses and we are excited to partner with him as we plan to execute on the Company’s next chapter of growth.”
Mr. Paul succeeds Tony Nardone who has departed the company to pursue other interests. “We appreciate the many contributions Tony has made to SyBridge and wish him well in his future endeavors,” said Mr. Luo.
Tips on Accessing Capital as an Under-resourced Small Business Owner
Interview with Peter E. Jackson, MBA, Vice President, Sr. Business Consultant at J.P. Morgan Chase
By Josaline Cuesta, California Program Director, Small Business Majority
Entrepreneurship is essential to a thriving and equitable economy. Yet, too many of our smallest businesses—especially those owned by people of color, women, rural business owners, and other under-resourced communities—face significant hurdles in accessing capital from banks and other traditional financial institutions.
Small Business Majority prides itself on partnering with experts in the field to mitigate the unnecessary impacts of inequitable access to capital and help to break down systematic barriers.
Peter E. Jackson, MBA is Vice President, Sr. Business Consultant at J.P. Morgan Chase. His work in California has been integral to creating pathways for minority and women entrepreneurs to access capital successfully. I sat down with Peter for a Q&A to discuss his experiences, share his expertise and tips, and learn more about expanded opportunities for capital in a unique community.
Do you believe there is a barrier to accessing responsible capital for small business owners? If yes, do you believe that a certain group of small business owners are more susceptible to experiencing challenges? Why?
From where I sit, one of the biggest hurdles facing minority small businesses is access to financial education. Many Black and Latino business owners we work with through the Chase mentorship program, believe it or not, cite access to education as their top need, e.g., understanding working capital, credit readiness, financial planning, managing debt and cash flow, etc. Working knowledge of these principles is the foundation of building a small business. That means having your bookkeeping and financial operations to help you make your best case when seeking funding/capital from any lender. Not having this in order may delay any financing for your business. There are also questions to ask yourself, e.g. ‘Am I in a healthy financial position to pay back a loan or is a bank loan the right financing option for my business needs at this time?’ This is where a banking relationship or banker can come in handy.
Often, minority entrepreneurs may not have had the best relationship with a bank or may not have had a parent or close individual to seek guidance from related to entrepreneurship – the list goes on. The pandemic exacerbated many of the underlying racial disparities that already existed in the U.S., including the banking system. As a firm, we recognize these challenges and do everything we can to address them.
In 2020, JPMorgan Chase announced a $30 billion racial equity commitment to create an inclusive economic recovery and help Black and Latino small businesses, families, and local communities create and sustain generational wealth. We’re creating the infrastructure to help more minority-owned businesses grow and recover through new programs, products, and hiring. This service is free, and business owners do not have to be Chase customers to receive coaching and mentorship.
Information about the JP Morgan Chase Minority Owned – Business Program is available at: https://www.chase.com/es/business/minority-businesses
What stories have you heard about the ease of accessing capital for small business owners? Can you please share a few typical challenges and some success stories? Did any success stories involve innovation? Did owners have to think outside the box to gain continued access to capital?
Yes, thinking out of the box is an everyday part of what we as Sr. Business Consultants do. Every business owner comes from a different place financially and operates their business differently. An example of this was a local smoothie bar owned by a Latina entrepreneur in Fontana, California. I discussed her goals and challenges, and she needed to obtain a small working capital loan to hire a part-time employee to extend her business hours and add signage. I helped her calculate and understand her break-even to determine the right price she needed to charge for her product to be able to pay for an additional employee and add a sign to the front of her store. This was important because she established new sales goals to drive more revenue. Also, the loan underwriter could see her business now had sufficient income capacity to borrow and pay back a loan by charging enough to support the loan payment. Business owners often borrow without a plan to demonstrate they can repay the loan or without consulting their CPA to ensure they leave enough money in their business to borrow. Part of my role is to help small business owners understand their business finances and how to leverage them to scale and grow their businesses.
What are some ways to increase small business funding to expand access to capital?
From JPMorgan Chase’s standpoint, here’s what we are doing to expand access to capital for underrepresented communities. We have committed $396 million (page 23-25) in small business philanthropy to grow Black, Hispanic and women-owned small businesses and create a more inclusive recovery from the COVID-19 pandemic, including:
- ~$42.5 million to expand the Entrepreneurs of Color Fund (EOCF) in more U.S. cities, the program will offer low-cost loans and technical assistance to small businesses through LISC and CFDI network
- Philanthropic investments to build the capacity of diverse-led nonprofits across the globe and support the signature Ascend Program
- Policy solutions through the JPMorgan Chase Policy Center to improve U.S. Small Business Administration (SBA) program to better meet the needs of minority- and women-owned small businesses.
Within Business Banking, we plan to provide an additional 15,000 loans -totaling $2 billion- to small businesses in majority-Black, -Hispanic and Latino communities over the next five years. To further expand access to credit to minority business owners, we’re:
- Exploring targeted adjustments to how the firm evaluates credit applications
- Introducing new products, including a digital lending platform, to better support the needs of small Black, Hispanic and Latino-owned businesses seeking quick access to capital.
What are some of your recommended, trusted community resources or training opportunities within the Inland Empire that will help with understanding ways to access legitimate capital?
- Mentorship, dedicated coaching, and education are critical to helping people get credit ready. Look into Chase’s 1:1 coaching for minority entrepreneurs across 21 U.S. cities, where they work with a senior business consultant to help them scale. Visit www.chase.com/businessconsultant to learn more.
- Visit the Inland Empire Center for Entrepreneurship (IECE), an SBDC program within California State University, San Bernardino, which delivers a wide range of programs, technical assistance, and services to existing small business owners or aspiring entrepreneurs in the community. Every state has a small business development center offered through U.S. SBA and colleges/universities.
- Lastly, I think AmPac, UCR, and the University of La Verne also have some of the strongest community resources that speak to access to capital, readiness, training, grant programs, microfinancing, etc.
Peter will join other financial experts for a Small Business Majority hosted event on September 14, 5:30pm PT. “Breaking Barriers: Accessing capital as women business owners of color” is a free event to learn tips for remaining resilient in business and how to navigate non-predatory debt financing options that will help grow or strengthen your woman-owned small business to help build generational wealth.
Stater Bros. Markets Appoints Rebecca Calvin to Senior Vice President and Chief Marketing Officer
Stater Bros. Markets is pleased to announce the appointment of Rebecca Calvin to the role of Senior Vice President and Chief Marketing Officer, due to the upcoming retirement of the company’s well-respected and current Executive Vice President and Chief Marketing Officer Dennis McIntyre. She will report to Chief Executive Officer Pete Van Helden and serve on the company’s Executive Leadership Team. She will begin her new role on Monday, September 26, 2022.
Calvin will lead the company’s marketing efforts which include the Sales and Merchandising, Integrated Marketing, eCommerce, and Food Strategy and Innovation departments. She will be responsible for strengthening Stater Bros.’ ability to meet the evolving needs of grocery shoppers in the diverse Southern California market through smart and effective product, pricing, and promotion strategies.
“I am very excited that Rebecca has chosen to join the Stater Bros. team and I look forward to working side-by-side with her to make Stater Bros. the premier shopping destination for groceries in Southern California,” said Stater Bros. CEO Pete Van Helden. “On behalf of all our teammates, I would also like to take this opportunity to thank Dennis for nearly 45 years of dedicated service to our company. His passion and enthusiasm have made a significant impact on the current and future success of Stater Bros.”
Calvin arrives at Stater Bros. with several years of experience in the grocery industry, most recently serving as Senior Vice President and Chief Merchandising Officer at The Save Mart Companies, where she led merchandising, space planning, pricing and promotion execution, and their private label program. Before joining The Save Mart Companies, she began her career in the grocery industry with Daymon Worldwide as a category buyer. She served as Vice President of Grocery, Frozen, and Dairy at Mariano’s before continuing on to merchandising and category management roles in the Kroger family of companies.
Calvin graduated from the University of Wisconsin-Oshkosh with a Bachelor of Science Degree in Biology with a Minor in Business Administration and is a graduate of the Cornell University Food Executive Program. She has earned a Six Sigma Green Belt Certification and currently serves on the Western Association of Food Chains (WAFC) Board of Directors. Earlier this year, Calvin was recognized as one of Retail Today’s “50 Outstanding Women in Retail.”
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