BY MIRIAM DE DIOS
Is your credit union overlooking a goldmine of a financial opportunity? If you’re not catering your strategies to attract Hispanic small business owners, you very well might be. Read on to find out why there is so much growth and revenue potential for CUs in this particular Hispanic market segment.
Several credit unions have achieved marked success with their Hispanic growth strategies. To keep that momentum, these cooperatives may need to evolve to target new and different segments within the Hispanic market, including Hispanic small business owners (HSBOs).
Hispanics own four million businesses and represent 22 percent of all business owners in the USA today. What kind of a financial opportunity do these figures represent? A large one. In 2015, Hispanic-owned businesses contributed more than $600 billion in revenue to the national economy.
It’s a deserving group, packed with individuals who are hungry for financial and leadership assistance. That’s because U.S. Hispanics are one of the most financially under served segments of the American population, and that disadvantage doesn’t disappear simply because an individual opens a business.
There are HSBOs of all types. Although the largest segment (at nearly 40 percent) , 20 percent of HSBOs are Spanish preferring and immigrated to the United States, retaining many of their Hispanic cultural practices. Notably, however, is the fact that Hispanic entrepreneurs are more youthful, connected digitally and socially engaged than non-Hispanics overall. And their businesses are growing at an incredible rate – more than 15 times that of all U.S. firms.
When designing an HSBO growth strategy, it’s important to consider that many of these business leaders are on their own, without the benefit of boards of directors, shareholders or even executive teams. Nearly 90 percent of Hispanic-owned businesses, in fact, are without paid employees. This tendency underscores the importance of leadership support and financial guidance for this critical segment of the Hispanic population. Digital products, services and marketing will be critical to establishing your credit union’s expertise and credibility.