Hispanic Small
Business Survey

Verizon’s Hispanic Small Business Report reveals that Hispanic small business owners are leveraging technology to fortify their business, streamline operations and create safeguards. Respondents have exhibited this inclination in recent years, and are prioritizing marketing and communications investments in 2023 with regard to technology upgrades.

• more than one-third (41%) have implemented new technology to solve for worker shortage
• nearly three out of four (74%) have leveraged digital tools and technologies to make money over the past three years
• over the past year, nearly half (47%) have transitioned to a digital-first operation
• nearly two-thirds (65%) are concerned about ensuring the security of online and digital transactions

Language also factors in the application and adoption of technology. Hispanic small businesses who conducted business through a combination of Spanish and English are leveraging digital tools to create new opportunities to make money to a greater extent (77%) versus those who conduct business primarily in English (69%).

Conducted in March of 2023 by Morning Consult, the Verizon Business survey has shown that Hispanic business owners are continuing a tendency to utilize technology to enhance their business and defend against economic downturns. In the last year alone, more than seven out of ten respondents added or upgraded high-capacity and high-speed internet services, highlighting their resolve to improve business functions through technology.

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While the majority of respondents demonstrate a commitment to digital transformation and technology upgrades, many cite a need for external support in order to achieve these goals. Those who interact with their customers through a combination of Spanish and English are especially likely to believe access to an external partner with expertise is key to facilitating digital transformation and upgrading technology systems. 

Regarding external support, respondents express interest in the following:

• programs providing access to financial experts for business advice (83%)
• grants intended to support Hispanic-owned small businesses (82%)
• free financial courses (82%). 

Hispanic small business owners exhibit apprehension about the economy because of financial pressures they experienced in the past year, including increased costs, which prompted respondents to look for financial support.

In the past year, only 32% have applied for a private loan or grant, but 78% reported wanting assistance in the form of finding private loan options and how to apply.

Furthermore, to enable the digitization of their businesses, Hispanic small businesses across the board looked for help in the following areas:

• more than three out of four (78%) would find it helpful to speak with IT experts to advise on remote work infrastructure and using newer technologies, such as 5G
• two out of three (67%) would find it necessary to have external support in helping their business provide new technology to employees to retain and attract new talent
  

Respondents cite marketing & branding, technology, social media and labor as areas that need improvement in order for their businesses to succeed in today’s economic environment. Many believe external support is instrumental to making improvements to their business, especially when it comes to the following:

• offering new products/services (74%)
• managing cash flow (73%)
• implementing new systems or technology to ensure security (71%).

Hispanic small business owners are more likely to pay for external advice for the following: 

• technology
• eCommerce/web development
• marketing
• finance

They’re also more likely to receive free outside advice about:

• business plan
• sales
• branding

Those who interact with their customers primarily in Spanish were especially likely to say social media marketing courses and advertising grants would be helpful for their business.

The majority of Hispanic small business owners are worried about a possible recession as well as the potential impact inflation might have on their business. 

Respondents’ anxiety is stoked by a number of economic headwinds, including the following: 

• the possibility of a recession (79%)
• the rate of inflation (76%)
• how rising labor costs (71%) may impact their business’ plans over the next few months 

Hispanic business owners are optimistic about the future despite anxieties about the economy and their financial security. While seven out of ten respondents express concern about current economic conditions, almost three-quarters (74%) expect their business prospects to improve over the course of the next year.

Despite the economic pressures that drove more than half of respondents to prepare for a recession (51%), about two-thirds say their business is better off now than it was a year ago (65%). A majority are hopeful their business’ financial security (55%) and their own (53%) will improve over the next few months:

Verizon Business’ survey reveals two driving forces among the Hispanic small business community: anxiety about the onset of a recession and bullishness for their long-term business prospects. Either way, respondents are proactive, investing in their business operations and in their business skills.