Hispanics in the United States: the most common challenges they face when starting a business

Hispanics in the United States: the most common challenges they face when starting a business

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Hispanics living in the United States they face big challenges when they decide to start a business, from the lack of financing to the ignorance of the use of tools to open a small business.

Hispanics is the population group that you are starting a business at a faster rate than the national average growing by more than 34% in recent years.

A report by Intuit QuickBooks “Small Business Insights” reveals the main challenges that Hispanics who own businesses in the United States have faced.

Main challenges for Hispanic entrepreneurs:

1. Lack of financing:

The report notes that 95% of Hispanic entrepreneurs mention that it is necessary to save your own money before starting a business in the United States. Since Hispanic entrepreneurs have faced a lack of loans and financing.

Near to 62% had to request a loan from a family member or friend to start their business Due to the difficulty of obtaining a traditional loan, however, they hope that in the future access to financing and obtaining external resources will be easier and easier.

2. Limited knowledge of financial management

For most Hispanics getting paid, paying a bill, and paying taxes are challenging. According to the study, these procedures still represent a great challenge for 74% of Hispanics who have started a business.

Cash flow review is not understood by 69% of Hispanics. This process is essential to make decisions about the future of a company, pay debts or invest in new equipment.

Related: What did these 5 Latino immigrants who became millionaires do?

3. Restricted use of banking services and credit cards

The study also reveals that only 25% of Hispanic businesses in the United States have a corporate credit card compared to 41% of small businesses that are non-Hispanic.

Additionally, 51% of Hispanic small businesses have a business bank account compared to 59% of all other businesses.

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