Strong Values lead to Start-up but lack of action among Hispanic Business Owners. [REPORT]

The number of Hispanic-owned businesses in New York grew three times faster than all businesses, according to the Office of the New York State Comptroller, generating $18.2 billion in sales in the ten-year period between 1997 and 2007. As New York’s economic recovery continues to add jobs*, it is clear that Hispanic businesses play a key role. But many of New York’s Hispanic business owners may be lacking knowledge of and access to tools to help them create a more solid financial future for themselves and their families, according to a study sponsored by Massachusetts Mutual Life Insurance Company (MassMutual).

The research study— Business Owner Perspectives: 2011 Insights in an Uncertain Economy —showed that Hispanic business owners value family, community and independence, which serve as motivators for Hispanics in pursuing their American Dream as business owners:

* Eighty-nine percent started their businesses to provide financially for their families (vs. 77 percent of general population business owners)

* Thirty-one percent want to provide jobs for other family members (vs. 19 percent of the general population)

* Fifty-four percent report that “giving back to the community” is a motivation for starting their businesses, when only 21 percent of general population business owners said the same.

But even as the cultural values of Hispanic business owners have motivated them to start their businesses, their long-term ability to provide for their families and communities may be in danger. Hispanic business owners are worried about meeting both their business and personal financial goals:

* Three in 10 say it is all they can do to keep up with everyday business expenses, much less think about the future.

* Twenty-three percent have too many immediate financial concerns to think about saving for retirement, compared to 16 percent of general-market businesses.

* Eighteen percent say they wouldn’t know where to go for financial assistance vs. 12 percent among general-market businesses.

Also troubling is the lack of future planning when it comes to the eventual sale or transition of businesses. The good news is that Hispanic business owners know to whom they want to pass on their businesses: seven in ten say to a family member (vs. just over half of general population business owners), yet

* Only 17 percent are concerned about transitioning ownership upon retirement (vs. 32 percent general population).

* Sixty-two percent have not even told the designated successors that they will be taking over the businesses.

* Only 24 percent have a business succession plan in place.

* Of those who have a succession plan in place, close to one third indicated that the plan was prepared by a friend, family member or by the owner himself or herself either alone or with a business partner.

“Latinos in New York City have long understood the meaning of the ‘American Dream,'” said MassMutual’s Stephen Grossman, General Manager of a New York City office, Financial Marketing Partners . “As business owners, they put incredible pressure on their shoulders to succeed, not just for themselves, but for the good of their families. The good news is that many already know they want to transition their businesses to the next generation; they just need to understand the advantages of having a formal succession plan, the information and tools to help them improve their ability to reach that dream,” he concluded.

“In our 40-year history, there has never been a greater economic or business need than now to build future Latino business leaders,” said Manny Espinoza, ALPFA chief executive officer, with national headquarters based in New York City. ALPFA—a professional organization for Latinos in business, finance, accounting and related fields—is dedicated to enhancing career opportunities, as well as building leadership and professional skills.

To download report CLICK on link below;
http://www.massmutual.com/mmfg/pdf/perspective_overview.pdf>