Hispanics are largely optimistic about growing their businesses over the next two years, but doubts about the economy and cutbacks in their spending may actually stall future expansion. Hunkering down in the face of a stubborn U.S. economy, with plans to conserve cash, reduce capital spending and manage expenses carefully, including some who will cut staff. The segment face concerns over several public policy issues, particularly taxes, the federal deficit, health care, climate/environment and immigration.
Owners Are Optimistic, Even In The Most Challenging Times:
Nine out of 10 Hispanic owners are optimistic about their own company's prospects, despite elevated concerns over the national and local economy. The vast majority feel their business is meeting or exceeding their expectations (69%), and they hope to grow their business over the next two years (77%).
Need To Use Credit Wisely To Fuel Growth:
The majority of business owners plan to conserve cash, reduce capital spending and pay down debt, and these are not steps to position a business for growth. Only 24 percent plan to take out a new loan or line of credit. Some business owners are using too much of their personal credit: nearly a third (28%) use personal savings or personal credit cards as the primary funding sources for their business. Another 4% rely on family money.
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