HELLO ALICE & SQUARE REVEAL NEW DATA ON CHALLENGES AND OPPORTUNITIES FOR HISPANIC SMALL BUSINESSES
The survey, conducted in partnership with the United States Hispanic Chamber of Commerce, highlights the top challenges Hispanic small business owners face
HOUSTON, October 5, 2022 /PRNewswire/ — Today, Hello Alice and Square unveiled a new study to outline the challenges and opportunities faced by Spanish-owned small businesses and to provide resources to meet their needs. Hello Alice, the free platform helping over a million small businesses grow, has released this latest survey report in honor of Hispanic Heritage Month. The survey was conducted in partnership with Square, the tech company that helps sellers of all sizes run and grow their businesses, and the United States Hispanic Chamber of Commerce (USHCC).
The survey of 2,700 Hispanic small business owners The United States on the Hello Alice platform revealed the top challenges facing the Hispanic demographic: raising capital through financing or credit building opportunities, sourcing raw materials or inventory, attracting customers, building staff, and effectively marketing to new and returning customers. Expanding access to financial literacy, grants, loans, credit cards, and other forms of capital remains one of the best ways to address these challenges and help Hispanic owners continue to grow their businesses and contribute to the global economy at large .
Key findings from the survey include:
- Inflation drives the demand for additional capital: When asked about their top business challenges, Hispanic owners most commonly cited two related areas: raising capital (30%), with the top difficulty being finding financing (86%); and business growth (24%). Much of these difficulties reflect the need for greater financial literacy and education.
- Business outlook 2023 depends on customer acquisition and recruitment: 81% of Hispanic owners say they are confident their business will grow in 2023, but the factors that Hispanic business owners say most determine their potential success fall into two categories: acquiring new customers and hiring a team. Hispanic owners cited attracting new customers (33%) almost as often as a key factor as being able to secure financing (35%).
- Hispanic owners see marketing as both a challenge and an opportunity: In terms of their focus on customer acquisition, Hispanic owners are more likely than the general population to cite marketing as a major challenge (11% vs. 7.6%). Hispanic owners in particular identify paid advertising (57%) and social media (54%) as potential areas of growth.
- Owners are looking for software solutions to address operational challenges: About half (48%) of all Hello Alice business owners say they are always looking for the latest technology solutions for their business, and another 48% say they are open to new technology solutions – provided they improve processes significantly.
“Minority-run small businesses have historically been underrepresented and often face unique challenges when trying to grow their businesses,” he said Elizabeth Gore and Caroline Rodz, co-founder of Hello Alice. “However, small businesses run by minorities, including Hispanic owners, have increased in economic power as part of the emerging new majority. They represent an increasingly powerful segment of the economy that is packed with potential when provided the right support to address growth challenges. This survey helps us better understand these unique challenges Hispanic small business owners face so we can find more effective solutions to help their businesses to become more successful.”
Last month, Square announced that its entire ecosystem of products and services — totaling more than 35 products — is now available to sellers in Spanish The United States. Spanish-owned businesses can use Square’s end-to-end business solutions in either English or Spanish, including key products that address the challenges outlined in this report. Square’s ecosystem gives sellers a single, easy-to-understand home for their entire business, unlocking a variety of features such as: For example, accessing credit through Square Banking, connecting and engaging with customers through Square Marketing, and managing employees through Team Management and Square Payroll.
“Spanish-owned companies make tremendous contributions to their communities and economies while facing unique challenges,” he said Bryan Solar, Head of Restaurants on the Square. “Square is fully invested in the success of Hispanic businesses and recently undertook a company-wide effort to make our entire ecosystem of products and services available in Spanish to ensure that both English and Spanish speaking sellers can take full advantage of our ecosystem in their preferred ecosystem.” Language As a Latino whose grandmother and extended family owned Mexican restaurants TexasI’m very excited to see what we can do for Hispanic Emprendedores like the ones I grew up with.”
“The United States Hispanic Chamber of Commerce is helping our 5 million Latin American businesses in the Americas meet capital, capacity and contract raising challenges,” he said Ramiro A Cavazos, President and CEO of USHCC. “We are proud to serve alongside our business partners at Hello Alice by providing more comprehensive, invaluable resources and effective programs to implement our 5 million dollars SBA Community Navigator Pilot Grant Program.”
ABOUT HELLO ALICE
Founded by Caroline Rodz and Elizabeth GoreHello Alice is a free platform serving over a million small business owners The United States. Hello Alice is committed to providing equal access to capital for women, people of color, members of the LGBTQ+ community, veterans and entrepreneurs with disabilities, providing funding, education, tools and curated opportunities. Working with business services, ecosystem partners, affiliates, and government agencies, Hello Alice provides its growing community with everything they need to grow their business. To learn more, visit www.helloalice.com, as well TwitterLinkedIn, Instagram and Facebook.
Square helps sellers run and grow their businesses more easily with its integrated ecosystem of commerce solutions. Square offers purpose-built software for running complex restaurant, retail, and professional services businesses, versatile e-commerce tools, embedded financial services and banking products, “buy now, pay later” capabilities via Afterpay, human resources and payroll capabilities, and much more – all working together to save sellers time and effort. Trusted by millions of sellers around the world to grow their business and help them thrive in business. Square is part of Block, Inc. (NYSE: SQ), a global technology company focused on financial services. Visit www.squareup.com for more information.
Jeronimo Anaya Ortiz
AROUND THE UNITED STATES HISPANIC CHAMBER OF COMMERCE (USHCC)
The United States Hispanic Chamber of Commerce (USHCC) actively promotes the economic growth, development and interests of five million Hispanic businesses who collectively contribute $800 billion for the American economy every year. The USHCC is America’s largest small business advocacy group, representing more than 260 local chambers and business organizations nationwide and working with hundreds of large American companies. Visit ushcc.com for more information. Follow us on Twitter @USHCC.
Veronica De La Torre
SOURCE Hello Alice