Hispanic Florida Small Businesses Growing

Small businesses in Florida are performing well despite lingering concerns about the U.S. economy, according to the inaugural Florida Small Business Pulse Check, a survey commissioned by TD Bank, America’s Most Convenient Bank. The regional survey polled small business owners in Central and South Florida about business goals, hiring plans, credit and financial needs and the anticipated impact of the Affordable Care Act (ACA).

The same study  surveyed 100 Hispanic business owners throughout Florida about their outlook and small business needs. Sixty percent of Hispanic owners said they expect to grow revenue in 2014, and 30 percent will hire additional employees. Hispanic businesses also report being more profitable than the general market, with 22 percent of Hispanic small businesses having gross revenue/sales of more than $500,000, compared with 18 percent of Florida small businesses overall.

Hispanic owners also indicated the ACA will create more of a strain, as 43 percent of their businesses are now required to provide health care insurance. These owners said the top ways to manage ACA-related costs will be to absorb/cover costs (48 percent) and reduce benefits/bonuses (15 percent). In addition, 31 percent expect to increase the price of their products and services to cover the cost of providing medical coverage, a sharp increase over the general survey population of business owners (4 percent).

Hispanic owners also indicated they are primed to invest more heavily in their operations, with nearly one half of owners saying they have credit needs compared with just 21 percent of Florida business owners overall. Of those Hispanic small business owners seeking credit, 70 percent will use it for equipment costs, 38 percent for marketing/advertising and 10 percent for rent or mortgage.