HELLO ALICE & SQUARE UNVEIL NEW DATA ON HISPANIC SMALL BUSINESS CHALLENGES AND OPPORTUNITIES

Rhea-AI Summary

The recent survey by Hello Alice and Square, in partnership with the US Hispanic Chamber of Commerce, highlights significant challenges faced by Hispanic small business owners.

Key results from 2,700 respondents indicate that 30% struggle with raising capital, while 81% are optimistic about growth in 2023, driven by customer acquisition and hiring. Marketing is seen both as a challenge (11%) and opportunity (57% cite paid ads). Square has enhanced its services for Hispanic businesses, now available in Spanish, facilitating access to crucial resources.

Positive

• 81% of Hispanic business owners are confident about growth in 2023.
• Square's ecosystem of products is now available in Spanish, enhancing accessibility for Hispanic-owned businesses.
• The survey provides valuable insights into the specific challenges Hispanic small business owners face, fostering better support solutions.

Negative

• 30% of Hispanic business owners identify raising capital as their greatest challenge.
• 86% of those struggling with capital cite finding funding opportunities as their primary difficulty.
• Marketing remains a significant challenge for Hispanic owners, with only 11% citing it as a strength.

The survey, conducted in partnership with the United States Hispanic Chamber of Commerce, reveals the biggest challenges facing Hispanic small business owners

HOUSTON, Oct. 5, 2022 /PRNewswire/ -- Today, Hello Alice and Square unveiled a new study to outline the challenges and opportunities faced by Hispanic-owned small businesses and to provide resources to meet their needs. Hello Alice, the free platform helping over one million small businesses grow, released this latest survey report in honor of Hispanic Heritage Month. The survey was conducted in partnership with Square, the technology company helping 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 across the United States on the Hello Alice platform revealed the largest challenges facing the Hispanic demographic: raising capital through funding or credit building opportunities, obtaining raw materials or inventory, acquiring customers, growing their staff, and effectively marketing to new and returning customers. Expanding access to financial education, grants, loans, credit cards, and other types of capital continues to be one of the best ways to address these challenges and help Hispanic owners further grow their companies and contribute to the overall global economy.

Key findings from the survey include: 

• Inflation Drives Demand For Additional Capital: When surveyed on their greatest business challenges, Hispanic owners most commonly cited two related areas: raising capital (30%), with the primary difficulty being finding funding opportunities (86%); and growing the business (24%). Much of this difficulty reflects a need for greater financial literacy and education.
• 2023 Business Outlook Hinges On Customer Acquisition And Hiring: 81% of Hispanic owners say they're confident their business will grow in 2023, but the factors Hispanic business owners say will most determine their potential success include two categories: acquiring new customers and hiring a team. Hispanic owners cited acquiring new customers (33%) as a determining factor nearly as often as the ability to secure funding (35%).
• Hispanic Owners See Marketing as a Challenge and Opportunity: Related to their focus on customer acquisition, Hispanic owners are more likely than the overall population to cite marketing as a significant challenge (11% vs 7.6%). In particular, Hispanic owners identify paid advertising (57%) and social media (54%) as potential growth areas.
• Owners Seek Software Solutions to Address Operational Challenges: About half (48%) of all Hello Alice business owners say they are always on the lookout for the latest technology solutions for their business, and another 48% say they are open to new technology solutions — provided they significantly improve processes.

"Minority-led small businesses have been historically underrepresented and often face a unique set of challenges when trying to grow their businesses," said Elizabeth Gore and Carolyn Rodz, co-founders of Hello Alice. "However, minority-led small businesses, including Hispanic owners, have been growing in economic power, as part of the emerging New Majority. They represent an increasingly powerful segment of the economy, full of potential if provided the right assistance to overcome growth challenges. This survey helps us better understand these specific challenges of Hispanic small business owners so that we can uncover more effective solutions to help their businesses become more successful."

Last month, Square announced that its entire ecosystem of products and services – more than 35 products in total – is now available in Spanish to sellers in the United States. Hispanic-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 capabilities like accessing loans through Square Banking, connecting with and staying in touch with customers through Square Marketing, and managing staff through Team Management and Square Payroll.

"Hispanic-owned businesses contribute enormously to their communities and the economy, all while facing a unique set of challenges," said Bryan Solar, Head of Restaurants at Square. "Square is fully invested in the success of Hispanic-owned businesses and recently underwent a company-wide effort to make our entire ecosystem of products and services available in Spanish, guaranteeing that both English- and Spanish-speaking sellers could take full advantage of our ecosystem in their preferred language. As a Latino whose grandmother and extended family have owned Mexican restaurants in Texas, I'm very excited about what we can do for Hispanic emprendedores like the ones I grew up with."

"The United States Hispanic Chamber of Commerce supports our 5 million Latino-owned businesses in America to overcome challenges in obtaining capital, capacity, and contracts," said Ramiro A. Cavazos, President & CEO of USHCC. "We are proud to serve along with our business partners at Hello Alice by providing more comprehensive invaluable resources and effective programs to implement our $5 million SBA Community Navigator Pilot grant program."

ABOUT HELLO ALICE 

Founded by Carolyn Rodz and Elizabeth Gore, Hello Alice is a free platform serving more than one million small business owners across the United States. Committed to equitable access to capital for women, people of color, members of the LGBTQ+ community, veterans, and entrepreneurs with disabilities, Hello Alice offers funding, education, tools, and curated opportunities. Working with enterprise business services, ecosystem partners, affiliates, and government agencies, Hello Alice provides its growing community with everything they need to grow their businesses. To learn more, visit www.helloalice.com, as well as Twitter, LinkedIn, Instagram, and Facebook.

Media Contact:
Jennifer Laski
Relativity Ventures
helloalice@relativity.ventures

ABOUT SQUARE

Square helps sellers more easily run and grow their businesses with its integrated ecosystem of commerce solutions. Square offers purpose-built software to run complex restaurant, retail, and professional services operations, versatile e-commerce tools, embedded financial services and banking products, buy now, pay later functionality through Afterpay, staff management and payroll capabilities, and much more – all of which work together to save sellers time and effort. Millions of sellers across the globe trust Square to power their business and help them thrive in the economy. Square is part of Block, Inc. (NYSE: SQ), a global technology company with a focus on financial services. For more information, visit www.squareup.com.

Media Contact:
Jerónimo Anaya Ortiz
Square
jeronimo@squareup.com

ABOUT 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-owned businesses that, combined, contribute over $800 billion to the American economy every year. The USHCC is America's largest small business advocacy group, representing more than 260 local chambers and business associations nationwide, and partners with hundreds of major American corporations. For more information, please visit ushcc.com. Follow us on Twitter @USHCC.

Media Contact:
Veronica De La Torre
vdelatorre@ushcc.com

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SOURCE Hello Alice

FAQ

What are the key challenges faced by Hispanic small business owners according to the recent Hello Alice and Square survey?

The survey highlights challenges such as raising capital, obtaining inventory, acquiring customers, hiring staff, and marketing.

How confident are Hispanic business owners about growth in 2023?

81% of Hispanic business owners express optimism about growth in 2023.

What solutions has Square provided for Hispanic-owned businesses?

Square has made its entire ecosystem of services available in Spanish to better serve Hispanic-owned businesses.

What percentage of Hispanic small business owners see marketing as a challenge?

11% of Hispanic small business owners view marketing as a significant challenge.

What does the survey say about the need for financial education among Hispanic business owners?

The survey indicates a strong need for financial literacy and education, as 86% of those facing capital challenges struggle to find funding opportunities.