New PNC Bank survey finds family essential for support, but not financing
Wilmington, DE (Sept. 11, 2012) – Nine out of 10 Hispanic business owners are optimistic about their prospects over the next two years but concerns about the U.S. economy have led the majority to focus on conserving cash and managing expenses more carefully.
Results of the first-ever PNC Hispanic Business Owners Outlook, which sought business insights from America’s largest and fastest-growing ethnic group, also found that most of these owners often employ family members, but not their family’s financial resources, in their operations.
“Hispanic business owners are taking a conservative approach to managing their business as they hunker down in the current economy,” said Jesús Muñoz, vice president of Business Banking.
“Small businesses are sensitive to economic cycles so it is important for them to manage productivity, expenses and cash flow through the inevitable up and down cycles.”
PNC Bank announced these findings as part of Hispanic Heritage Month celebration (Sept. 15-Oct. 15) across the markets it serves.
Other key findings of the survey include:
Short-Term Worries, Long-Term Optimism
• Concerns about U.S. and local economies: Hispanic business owners say their business is meeting or exceeding their expectations for sales and financial performance (69 percent), despite a significant number expressing pessimism about the national economy (31 percent) or local economy (23 percent).
• Sky’s the Limit: More than three in four (77 percent) hope to grow their business over the next two years.
Where’s the Growth?
• Save More, Spend Less: Seven of 10 (71 percent) “definitely” or “probably” will conserve cash in the next six months, and 59 percent say they plan to reduce capital spending.
• Cutting Back: More than two-thirds (68 percent) will reduce or eliminate expenses in the business while 15 percent intend to reduce staffing.
• Avoiding Risk: Fewer than one in four (24 percent) plan to take out a new loan or line of credit, while 62 percent will trim debt.
Family is Key to Success
• Family Affair: the majority of Hispanic Business owners have their family involved in business operations (60 percent), and nearly half (45 percent) intend to keep the business in the family when they retire.
• Moral Support: When starting their businesses, owners considered encouragement from friends and family (46 percent) as important as having a strong group of