To celebrate Hispanic Heritage Month, Intuit commissioned a survey of 1,500 Latino and Hispanic business owners, employees, and self-employed people to get a pulse on their financial well-being. With a hypothesis of “unidos we grow,” the survey explores the contributions families and communities make to people’s success. Let’s dive into the key findings.
Nine out of ten are achieving financial goals
On the face of it, the fact that 91% of the survey respondents are achieving some or all of their financial goals is great news. But at the same time, three in five (62%) need more help to fully achieve these goals. Notable challenges include inflation and retirement planning, as we discover below, and women report greater barriers than men.
Inflation is now a barrier to financial success
Two-thirds (66%) of those who are struggling to achieve their financial goals blame inflation, making it the number-one barrier to financial success. Half (50%) say the cost of buying or renting a home is a problem.
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Most cannot save for retirement
While the majority (60%) report financial stability, the remaining 40% say times are tough right now. More than nine out of ten (93%) are not currently able to plan for the future—such as saving for retirement. Again, women are more likely than men to report financial difficulties.
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One in four say their finances have deteriorated this year
Almost one in four (24%) are currently in a worse financial situation than they were last year. On a brighter note, more than half (57%) say their finances have improved, with 18% saying they’re “significantly better.” But a year ago, many people were still feeling the economic effects of the pandemic.
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Small businesses are built on family and community support
Despite the challenges evident in the survey data, more than nine out of ten small business owners (96%) report that they are achieving some or all of their financial and business goals. Of these, 95% say their family contributed to their business success. The same proportion recognize the contributions of their local community.
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Entrepreneurial success starts at home
Hispanic and Latino business owners start their businesses, on average, when they are just 26 years old. That’s two years earlier than other business owners, according to the survey data. Again the family impact is clear: nine out of ten say someone in their family inspired or encouraged them to make the leap and go it alone.
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Strong businesses need a strong workplace culture
Almost all of the respondents who currently work for growing small businesses with strong workplace cultures (98%) say you can’t have one without the other. They believe businesses are more likely to grow when their employees share the same vision and values.
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Businesses still need word-of-mouth referrals
The value of a good network is as important today as it’s ever been. Almost all Latino/Hispanic business owners (up to 98%) rely on word-of-mouth referrals to find new customers or hire new employees. And employees agree: more than two-thirds (67%) found their current job through someone they know in their community.
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Career growth is nurtured by families and communities
As we’ve seen, networks can help employees as much as their employers. Almost all of the Latino/Hispanic workers who are achieving their career goals (95%) say their family contributed to this success. Three-quarters (75%) say their community contributed.
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Almost everyone will pay it forward when they can
There is much to celebrate in these survey results. Perhaps none less than the fact that despite the financial challenges that many people face, almost all (96%) will offer financial support to people in their family, when they are able to, if it’s needed. Similarly, 83% will offer financial support to people in their community.
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Economic and cultural impact
The overwhelming majority of the survey respondents agree that Latino/Hispanic communities make an important contribution to the US economy and culture. Recognizing these contributions and achievements is one of the primary goals of Hispanic Heritage Month, which starts today (September 15): the anniversary of independence for Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.
“We celebrate Hispanic Heritage Month to recognize the achievements and contributions of Hispanic American champions who have inspired others to achieve success.” Read more.
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Methodology
Intuit commissioned an online survey in August 2022 of 3,000 business owners, employees, and self-employed people throughout the US, all aged 18+. Half of the respondents are Hispanic or Latino (1,249 Hispanic and 251 Latino), the other half are not Hispanic or Latino (1,111 white, 218 Black, 75 Asian, 20 Arab, 28 Multiracial, 48 other/unknown). This report focuses on the data provided by Hispanic and Latino respondents. Small businesses are defined as having less than 100 employees. Census data weightings were used to ensure the responses are representative as possible. Percentages have been rounded to the nearest decimal place, so some charts or statistics shown here may not add up to 100% but 99% or 101% instead. Responses were collected in an online survey using Pollfish audience pools and partner networks with double opt-ins, random device engagement sampling, and post-stratification to ensure accurate targeting and results. Respondents received remuneration.
Disclaimer
This content, report and materials are for informational purposes only and should not be considered legal, accounting, financial, investment, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc., or its affiliates do not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc., or its affiliates do not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.
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This article originally appeared on The QuickBooks Resource Center and was syndicated by MediaFeed.org.
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Like personal credit, it’s important to regularly monitor your business credit. Having a business solid score can help you in a number of ways, including:
- Obtaining a business loan or line of credit more easily and with better terms;
- Convincing suppliers to extend business credit and/or offer you better payment terms; and
- Boosting your business’ reputation with potential partners, vendors, and suppliers.
You should begin building your business credit rating as soon as your business is up and running. And if you’re already going, it’s never too late to start. Here are some ways to do it.
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If your business is a sole proprietorship, it may be harder to keep your business and personal finances separate. Building business credit is one reason why forming an LLC or corporation could be the right structure for your business. A Limited Liability Corporation (LLC) combines the limited liability of corporations with certain tax benefits.
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Get an EIN for your business. This 9-digit number, like a Social Security number for businesses, is assigned by the IRS. Having an EIN number can make it easier to open a bank account or secure funding from lenders.
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It’s a best practice to operate your business as a separate financial entity. Opening a business bank account and keeping personal and business funds separate not only provides an opportunity to build business credit, but it can also simplify tax preparation.
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Business loans—in addition to helping keep your personal and business finances separate—can help build your business credit as well as categorize and track expenses.
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Paying all of your debts on time—including payments to utility companies, vendors, landlords, credit-line payments, and business credit card companies—is critical to building a strong business credit rating.
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Consider how much available credit you want on-hand as a financial cushion if you run into a cash flow crunch. If you have more credit available than you need, and keep your utilization across each line of credit to less than 30% you’ll gradually build your business credit rating.
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Business loans and lines of credit are powerful tools for funding necessary expenses, including hiring, marketing, or covering unexpected emergencies. They also enable you to grow your business without relying on high-interest credit cards. They’re a great way to build your business credit rating.
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Make sure the three major business credit reporting agencies have complete and accurate information on your business, including your EIN. Keep them updated on any changes to your business, such as a new address or contact information. Quickbooks Capital partnered with a leading agency, Dun & Bradstreet to provide a free business credit score to to help Quickbooks customers get a better handle on their score.
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Not all companies report payments to the business credit bureaus. Therefore, you may have to ask your vendors directly to do this on your behalf. Quickbooks Capital reports to the agencies to help customers build their credit score.
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Once a quarter, check your business credit report and your business credit rating with each of the three credit bureaus. If you spot any errors or inaccuracies, take steps to correct them. You’ll also be able to see if your credit rating is declining for legitimate reasons, such as late payments or overused credit, and take steps to change that behavior. If you’re a Quickbooks Capital customer, you may already have access to a free score provided to our customers by Dun & Bradstreet.
A strong credit rating is critical for small business. Taking these long- and short-term steps can help you have more and better options available when you decide to seek additional funding for your business.
To learn more, check out this comprehensive guide on how to start a business.
This article originally appeared on the Quickbooks Resource Center and was syndicated by MediaFeed.org.
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Featured Image Credit: DepositPhotos.com.
