Despite their concerns about the current economic environment, the majority of Hispanic small business owners (64 percent) are optimistic about their business in the year ahead, compared with general market business owners (40 percent), according to a new survey just released by TD Bank, America’s Most Convenient Bank®.
The survey, which served as a barometer to evaluate whether small business owners were on-target with their business plans for 2013, found that at the beginning of this year, nearly 70 percent of Hispanic business owners were confident that their business would exceed 2012 results, compared with just 47 percent of general market small business owners who felt the same. They reported a positive outlook despite the nearly half (43 percent) who reported they are concerned about the impact the economy will have on their business.
“It’s encouraging that given the current economic landscape, Hispanic small business owners are optimistic about the year ahead,” said Jay DesMarteau, TD Bank’s head of small business. “The survey suggests that Hispanic small business owners find it important to structure and regularly evaluate their business needs, demonstrating that banks must focus on offering products and services to help Hispanic small business owners meet their goals.”
At the start of 2013, Hispanic small business owners reported managing new work (22 percent), access to credit (18 percent), and hiring and retaining good talent (17 percent) as their biggest challenges for the year. Approaching mid-year, nearly 20 percent of Hispanic small business owners cited the need to be innovative as one of the challenges they face for the remainder of 2013.
Hiring on the Horizon
Coupled with their optimistic viewpoint on business performance, more than half of Hispanic small business owners (53 percent) intended to hire one or more employees at the beginning of 2013, compared with just 17 percent of general market small business owners. As of the second quarter of 2013, 47 percent of Hispanic small business owners report plans to hire one or more employees right now for the remainder of 2013, compared with 17 percent of general market owners.
Fifty percent of Hispanic small business owners are reviewing and updating their financial plan each month compared with just 30 percent of general market owners. Since the beginning of the year, more than half (57 percent) of Hispanic small business owners have updated or changed their business plan while only 33 percent of general market small business owners have made updates or changes.
“It’s great that Hispanic small business owners regularly update and review their financial reports and progress,” said DesMarteau. “Business owners who understand their current financial outlook, and work with a financial partner to create a plan that will adapt as their business needs change can eliminate uncertainties and feel more optimistic in the long term.”
TD Bank also found that more than 30 percent of Hispanic small business owners reported they applied for a new loan in the past 12 months, compared with only 12 percent of general market owners. Furthermore, 85 percent of Hispanic small business owners were approved for a new loan and able to receive additional credit, compared to just 73 percent of the general market owners.
The study was conducted among a regionally representative group of consumers from Maine to Florida (and a national sample of Hispanic small business owners) from April 12 – 20, 2013. The sample size of 604 has a margin of error of +/- 4.0 percent. The survey was hosted by global research company Angus Reid Public Opinion.
About Angus Reid Public Opinion
Angus Reid Public Opinion is the Public Affairs practice of Vision Critical—a global research company. Vision Critical is a leader in the use of the Internet and rich media technology to collect high-quality, in-depth insights for a wide array of clients.
About TD Bank , America ‘s Most Convenient Bank®
TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the U.S., providing nearly 8 million customers with a full range of retail, small business and commercial banking products and services at more than 1,300 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J., and Portland, Maine. To learn more, visit www.tdbank.com. Find TD Bank on Facebook at www.facebook.com/TDMoneyLoungeUS and on Twitter at www.twitter.com/TDBank_US.
TD Bank, America’s Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol “TD.” To learn more, visit www.td.com.