Being one’s own boss. A flexible schedule. Pursuit of passion. While entrepreneurship can be a challenging endeavor, benefits like these are driving the dramatic growth of self-employment rates in our country.

Among the fastest growing market of entrepreneurs in the United States are Hispanic small business owners. The 4th Annual Report 2016 by the U.S. Hispanic Chamber of Commerce cites the number of Hispanic-owned businesses was on track to grow to more than 4.23 million last year. To further understand what is driving the entrepreneurial spirit of this market, Northwestern Mutual recently conducted a survey among Hispanic small business owners to understand their motivations, confidence levels and financial priorities when it comes to managing their businesses.

Motivating factors

The survey indicated that a number of factors are motivating Hispanic small business owners to become entrepreneurs, including pursuit of passion (32 percent), a flexible working schedule (30 percent) and the opportunity to build a legacy for their families (25 percent). However, the overwhelming majority (62 percent) cited being their own boss as the motivator behind their business endeavors, indicating the value of an autonomous career among these business owners.

Financial confidence

Entrepreneurship, while an exciting undertaking, can be coupled with increased uncertainty and unique challenges in comparison to other professions. The survey also sought to identify the different resources Hispanic small business owners turn to before embarking on this career path. The results found that 52 percent of respondents sought advice from friends and family as well as other business owners (47 percent) when starting out. Twenty-six percent turned to financial planners or advisors.

While they do seek out advice, 85 percent of Hispanic small business owners are confident in their financial management abilities. However, respondents also cited a number of resources and strategies they believe would improve their confidence in managing their business’s finances. This list included earning more revenue (48 percent), establishing a long-term financial plan (37 percent) and working with a financial planner (27 percent).

Growth and top priorities

Another significant finding of the survey was that, while 49 percent of respondents spent time daily planning for the future of their business, long-term financial planning appeared to take a backseat. In fact, only 37 percent of Hispanic small business owners listed planning for the unexpected as a top financial priority, followed by 30 percent who prioritized retirement planning. As Hispanic small business owners continue to grow their businesses, it becomes increasingly critical for them to plan for the future, both professionally and personally. A personalized, holistic financial plan that incorporates long-term goals can help lead to financial success, in addition to safeguarding against the unexpected by putting protections in place.

A few strategies for business owners to consider include an increased emphasis on saving for retirement, outlining a business succession plan for transitioning ownership and considering protections like disability income and life insurance to create a safety net for their families and themselves.

By looking ahead, Hispanic small business owners can continue to improve their confidence and elevate the success of their enterprises.

To contact Andres Baltazar, please email him at andres.baltazar@nm.com, or visit his website at http://www.gbaltazar.com.

Article prepared by Northwestern Mutual with the cooperation of Financial Advisor Andres Baltazar. Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Andres Baltazar is an Insurance Agent of NM.