CHERRY HILL, N.J., May 4, 2015 /PRNewswire/ -- TD Bank, America's Most Convenient Bank®, today announced the results of a recent small business survey, which found that Hispanic small business owners are more likely to pursue entrepreneurship at a younger age than business owners in the general market (average age of 35 years old vs. 39 years old), with half of Hispanic small business owners citing previous business management experience before coming into their current ownership role.
The survey examined various factors in entrepreneurship, including confidence in ability to manage the business, areas where business owners would like to receive advice and their financial preparedness for retirement. The survey, administered to small business owners nationwide, found the majority (81 percent) of Hispanic owners handle their company's own finances/bookkeeping, with 68 percent feeling very/extremely confident in doing so.
"The confidence expressed by Hispanic owners in managing their businesses reflects the success that they have achieved," said Jay DesMarteau, Head of Small Business Banking, TD Bank. "Even the most experienced small business owner should look past the year's revenues, however, and enlist the help of a trusted financial advisor who can assist in outlining long-term goals and how to achieve them, setting them off on a path to prosperity."
Solid Beginnings and Development
According to the survey, 83 percent of Hispanic small business owners started their business from scratch, while just 6 percent took over a family business. Seventy percent of Hispanic small business owners were employed in the workforce prior to starting their current business, 10 percent of Hispanics owned another small business and 12 percent citied that they attended college or served in the military. Hispanic small businesses are slightly more likely than the general market to have more than one employee (45 percent vs. 43 percent). Seventy-five percent of Hispanic small business owners said they are most confident in managing employees/human resources, which is higher than the general market (71 percent), and could be a factor in being able to add employees.
Importance of Education and Smart Resources for Small Business Development
The survey also found that Hispanic owners do not take their management education or advice lightly. Fifty-five percent of small business owners have a college or post-graduate degree, and Hispanic business owners are eager to continue learning, with 43 percent of Hispanic owners revealing they have taken a course or seminar to learn more about managing their small business. Similarly, Hispanic small business owners value professional assistance, with 31 percent using a dedicated banker or financial planner.
"Running and managing a small business is hard work and requires patience. It might be useful to seek outside advice and support in areas where owners can use guidance," DesMarteau said. "This can be something as simple as having a banker who is available after normal business hours or meeting with a financial advisor who can help strategize long-term plans."
When it comes to seeking outside help and expertise, Hispanic business owners are most likely to turn to the following:
- Family and friends (54 percent)
- Web/Internet (37 percent)
- Industry associations/networking groups (35 percent)
Preparing for the Future
Although the results indicate confidence in Hispanic owners handling their business finances, personal finance when it comes to retirement remains a challenge. Just 36 percent of Hispanics surveyed stating they are confident that they will retire comfortably, reinforcing the value in speaking with a financial advisor on financial stability for the future. The responses also emphasize the value of confidence of Hispanic owners as it relates to loved ones and their businesses. The survey results indicate that 21 percent of Hispanic small business owners plan to pass the business on to family or a co-worker after retirement, compared with 15 percent of general market owners. When asked if they would close the business after retirement, the survey found that fewer Hispanic owners stated that this was their plan when compared with general market owners (18 percent compared with 24 percent).
Survey Methodology
The study was conducted among a representative group of 667 business owners. Also included is a sample of 128 Hispanic business owners between March 30 - April 6, 2015. The margin of error is +/- 3.8% percent. The survey was conducted by Vision Critical.
About Vision Critical
Vision Critical provides a cloud-based customer intelligence platform that helps companies build engaged, secure communities of customers they can use continuously, across the enterprise, for ongoing, real-time feedback and insight.
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 more than 8 million customers with a full range of retail, small business and commercial banking products and services at approximately 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. To learn more, visit www.tdbank.com. Find TD Bank on Facebook at www.facebook.com/TDBank 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.
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SOURCE TD Bank