Two-thirds of Hispanic business owners said they started their firms to better their lives, provide for their families, according to new survey.
Traci White/Daily News-Record/AP/File
Hispanic Americans believe business ownership is the key to harnessing the much- sought-after "American Dream."
More than any other segment of the population, Hispanic Americans view entrepreneurship as a way to pursue the American Dream, take control of their lives and support their families.
That's the finding of new research that reveals about two-thirds of Hispanic business owners (versus only 36 percent of the general business-owning population) said they started their businesses to pursue the dream of bettering their lives and providing for their families.
And these business owners are planning on keeping it in the family. While 54 percent of the general population of business owners plans to pass their businesses on to their children, 70 percent of Hispanic business owners plan to do so.
These findings were part of the Massachusetts Mutual Life Insurance Co.’s (MassMutual) "Business Owner Financial Wellness Study," which were presented at the Association of Latino Professionals in Finance and Accounting’s (ALPFA) national convention Aug. 6-10 in Anaheim, Calif.
This portrait of Hispanic business owners is particularly valuable because Hispanic business ownership has seen explosive growth over the last decade.
According to the U.S. Census Bureau, the number of Hispanic-owned businesses in the United States increased by 43.7 percent to 2.3 million, more than twice the national rate of 18 percent between 2002 and 2007. About 45.8 percent of all Hispanic-owned businesses are owned by people of Mexican origin.
The Census Bureau also reported that Hispanic-owned businesses generated $345.2 billion in sales in 2007, up 55.5 percent compared with 2002. Hispanic businesses are also outpacing non-Hispanic-owned businesses in terms of job creation.
Hispanic entrepreneurs were much more likely to say they started their businesses to support their families, according to MassMutual.
"Latino business owners report to a higher degree that providing for their families is the strongest driver for going into business," said Chris Mendoza, assistant vice president of multicultural markets at MassMutual. "Also, Hispanics' definition of family is quite broad, meaning they have more people counting on them."