Overview. Develop a Strategy to Reach Hispanic Business Owners 6/23/2014. Hispanic business in the U.S. Needs of businesses Credit union opportunities

Transcription

1 Develop a Strategy to Reach Hispanic Business Owners Anna Peña, Client Relations Manager Date: 6/17/2014 Overview Hispanic business in the U.S. Needs of businesses Credit union opportunities 1

2 Target Market First generation immigrants Second generation/ Gen Y Hispanic business owners Hispanic Businesses are Powering U.S. Economic Growth 2

3 Hispanic Business Facts Number of Hispanicowned businesses increased by 43.7% from 2002 to 2007 (to 2.3 million) more than twice the national rate of 18%, and are expected to grow by 4.3 million in 2012 Immigrants created 28% of all new firms in 2011 and are twice more likely to start a business than U.S. born citizens. Sources: U.S. Census Bureau, Census 2007 Survey of Business Owners, June 2011; U.S. Labor Department, U.S. Department of Commerce Minority Business Development Agency, Geoscape Hispanic Owned Businesses Source: Geoscape 3

4 Hispanic Owned Businesses Hispanics are creating new businesses at a faster clip than any other ethnic group Minority owned businesses are twice as likely to export compared to nonminority firms Sources: U.S. Census Bureau, Census 2007 Survey of Business Owners, June 2011; U.S. Labor Department, U.S. Department of Commerce Minority Business Development Agency, Geoscape Hispanic Business Facts 11% of Hispanic businesses surveyed in 2007 had employees In 2007, Hispanic firms with employees had average receipts of $1.1 million, and average employment of 8 workers per firm. In 2012, the Hispanic population of the U.S. has an estimated buying power of $1 trillion, similar to the 2011 purchasing power of countries such as Indonesia ($1 trillion) and larger than Australia ($882 billion), and of all but 14 countries worldwide. Sources: U.S. Census Bureau 2007 Survey of Business Owners, June 2011; Department of Commerce Minority Business Development Agency, Nielsen Q2 Report: State of the Hispanic Consumer: The Hispanic Market Imperative. GlobalFirePower.com 4

5 Source: Geoscape Hispanic Household Wealth Stats Source: Geoscape 5

6 Hispanic Business Facts Between 2002 and 2007, Hispanic owned firms outpaced the growth of non minority firms in gross receipts (58% Hispanic growth), employment (24%), and number of firms (44%). Hispanic firms are an engine of job creation, with paid employment growing by 24% from 1.5 million to 1.9 million, compared to a decrease in employment of 1% for non minority firms. Sources: U.S. Census Bureau 2007 Survey of Business Owners, June 2011; Department of Commerce Minority Business Development Agency. Top Industry Sectors Hispanic firms were most concentrated in: Construction (15%) Administrative, Support, Waste Management and Remediation Services (14%) Health Care and Social Assistance (10%) Other sectors include firms in Information, Manufacturing, Wholesale Trade, Mining, Utilities, Education, Entertainment, Accommodation and Food Services, Finance, and Agriculture, among others. Source: U.S. Department of Commerce Minority Business Development Agency s 2007 Hispanic-Owned Business Growth and Global Reach 6

7 Opportunity for Growth Financing Hispanic Businesses Personal savings Family loans Small Business Administration loans Non profit organizations minority business programs U.S. government job creation programs Financial institutions May be affected in the future by Crowdfunding legislation of JOBS Act enacted April 5,

8 Disparity in Capital Access for Minorities Minority owned firms are less likely to receive loans than non minority owned firms regardless of firm size. When minority owned firms do receive financing, it is for less money and at a higher interest rate than nonminority owned firms regardless of the size of the firm. (7.8 percent vs. 6.4 percent for non minority owned firms). Source: MBDA study Disparities in Capital Access between Minority and Non- Minority Businesses. Parity for Hispanics Entrepreneurial parity for Hispanic businesses has yet to be reached. The adult Hispanic population represented 13% in 2007, but Hispanics held only 9% of all Classifiable firms, 3% of these firms gross receipts and 3% of their employment. If Hispanic firms gross receipts reflected the 2007 adult Hispanic population share, receipts would have amounted to more than $1.4 trillion, about $1.1 trillion more than the actual figure. Paid employment would have totaled 7.4 million about four times the actual employment. The number of Hispanic firms would have been over 3.4 million firms, nearly 1.2 million additional firms. 8

9 The Credit Union Opportunity Providing Solutions Individual banking needs of business owners and employees Create trust Understand client s financial history and goals Business needs: Payroll/direct payment Small business loans Savings/investments Retirement Merchant services Micro financing 9

10 Strategic Opportunities Become a Small Business Association preferred lender Partner with local non profit business programs Get to know your local Hispanic chamber of commerce and Hispanic entrepreneurial associations in your area Support culturally relevant financial and other initiatives Add bilingual business development professionals Rewards Membership growth Small business friends and family Employees friends and family Grow with business Range of CU products used Size of financial products used 10

11 Products and Services Examples Business Credit Card A competitive interest rate Rewards earned with every purchase on every card Redeem Rewards for cash back, merchandise, gift cards or travel experiences FREE employee cards Special discount offers at selected merchants Assign credit lines based on employees roles View activity across all cards under your account Online tools to make your job easier Products and Services Business Checking Checking Accounts A simple non interest bearing business checking account For 1,000 or fewer monthly items (including checks paid, checks deposited, and automatic debits and credits). Business Interest Checking An interest bearing business checking account for organizations that always maintain more than $2,500 in their account and generate fewer than 1,000 items per month (including checks paid, checks deposited, and automatic debits and credits). 11

12 Products and Services Business Loans Short Term, Single Payment Operating Loans Equipment, Vehicle, and Fixed Asset Loans Commercial Real Estate Loans Secured and Unsecured Lines of Credit Letters of Credit Small Business Administration (SBA) Loans Small Business Administration (SBA) loans can allow you to start your own or expand your current business. It is a short or long term business loan that can also be used for business operation costs. Products and Services Agriculture Loans Agricultural Loans Equipment Loans Operating Lines of Credit Agricultural Real Estate Loans Farm Service Agency Guaranteed Loans (FSA) Farm Operating Guaranteed Loan (OL) Farm Ownership Guaranteed Loan (FO) 12

13 Products and Services Online Banking Online Banking service as a FREE 24/7 account access Check balances View account history Transfer funds Set up ACH batches Initiate wire transfers Access to Business BillPayer and estatements Apply for a loan and more Products and Services Business BillPayer Online solutions for the needs of small businesses Pay any number of employees electronically Send payroll deposits to multiple accounts Create customized auditing reports Set multi user entitlements for employees Set transaction caps at the sub user and payee level 13

14 Products and Services estatements FREE and faster than paper statements Secure access from your Online Banking a notification when your monthly statement is available to view 24 hr. Telephone Banking FREE 24 Hour Telephone Banking service Balance Inquiry Check cleared Transfer money between accounts Products and Services Point Of Sale System For Apple ios or Android TM mobile devices Your business can be wherever you choose to be Remote check deposit Mobile balance inquiries and transfers Accept payments regardless of how your customers want to pay. Sales receipt Refund and void capabilities Transaction reporting Low cost per transaction Low cost per month 14

15 Products and Services Reloadable Card Instant issue reloadable card Payroll Direct Deposit Free Access Online Text Alerts POS transaction no fee for cash back at POS merchants One free ATM withdrawal per pay period Resources US Hispanic Chamber of Commerce and Visa: Growing your business Understanding credit to achieve business success content/uploads/2014/05/visaaaaa.pdf 15

16 Save the Date! July Webinar Upcoming Training Opportunities America s Credit Union Conference San Francisco, CA June 30 July 3 rd Community Credit Union and Growth Conference Las Vegas November 3 6 Emerging Markets Track with The Federation 16

17 Contact Coopera Anna Peña Client Account Coordinator NW 118th Street Des Moines, Iowa cooperaconsulting.com blog.cooperaconsulting.com 2012 Coopera. Original information contained within this presentation is copyrighted and cannot be used without expressed written consent from Coopera. 17