A new study on Latino entrepreneurs shows that business and family go hand in hand. The study, “The Pursuit of the American Dream: The Fiscal Practices of Today’s Hispanic Business Owners,” conducted by MassMutual Financial Group, was released this week at the Association of Latino Professional in Finance and Accounting convention in California.
Nearly 9 in 10 (89%) Latino business owners said they started their business to help provide for their family, versus 77% of the general pubic. About 70% of Hispanic entrepreneurs plan to turn over the business to a relative, citing the desire to maintain a family legacy and provide something tangible for their children.
The study points to the important ties between family, business and local community for Hispanics:
- 89% start a business to provide financially for their families, vs. 77% of all business owners
- 55% start a business to have something tangible to pass on to their children, vs. 35% of all owners
- 31 % wanted to provide jobs for other family members, vs. 19 % all business owners
- 70% have relatives beyond spouses and children who depend on their business success
- 70% plan to pass their business on to a spouse or children when they retire or die, vs. 54% of all owners
- 54 % reported “giving back to the community” as a driver to set up shop, vs to 21 % of the general population.
The new research reinforces that for many Latinos, starting a small business is how they pursue the American Dream, take control of their lives, and how they financially support their families. According to Inc.Com Hispanic entrepreneurs cited following their dreams as a motivation to start a business at double the rate of the general population.
It is probably not a coincidence that Hispanic-owned businesses are growing at double the national rate, according to the U.S. Census.
According to the O.C. Register: “Hispanics have an all-encompassing view of life and success,” the report says. “Their extended definition of family includes the community and both are strongly interconnected with their businesses.”