MassMutual: Study Reveals Strong Values Lead to Start-up but Lack of Action among Hispanic Business Owners Results in Poor Future Fiscal Fitness

NEW YORK, July 12, 2012 /PRNewswire/ -- The number of Hispanic-owned businesses in New York grew three times faster than all businesses, according to the Office of theNew York State Comptroller, generating $18.2 billion in sales in the ten-year period between 1997 and 2007. As New York's economic recovery continues to add jobs*, it is clear that Hispanic businesses play a key role. But many of New York's Hispanic business owners may be lacking knowledge of and access to tools to help them create a more solid financial future for themselves and their families, according to a study sponsored by Massachusetts Mutual Life Insurance Company (MassMutual).

The study findings will be presented Thursday evening and expert panelists from local media, investment and venture capital firms will be on hand to shed light on how local Hispanic entrepreneurs are faring. The program begins at 5:30 p.m. at the Muse Hotel, 130 West 46th Street. 

The research study—Business Owner Perspectives: 2011 Insights in an Uncertain Economy—showed that Hispanic business owners value family, community and independence, which serve as motivators for Hispanics in pursuing their American Dream as business owners:

• Eighty-nine percent started their businesses to provide financially for their families (vs. 77 percent of general population business owners)
• Thirty-one percent want to provide jobs for other family members (vs. 19 percent of the general population)
• Fifty-four percent report that "giving back to the community" is a motivation for starting their businesses, when only 21 percent of general population business owners said the same.

But even as the cultural values of Hispanic business owners have motivated them to start their businesses, their long-term ability to provide for their families and communities may be in danger. Hispanic business owners are worried about meeting both their business and personal financial goals:

• Three in 10 say it is all they can do to keep up with everyday business expenses, much less think about the future.
• Twenty-three percent have too many immediate financial concerns to think about saving for retirement, compared to 16 percent of general-market businesses.
• Eighteen percent say they wouldn't know where to go for financial assistance vs. 12 percent among general-market businesses.

Also troubling is the lack of future planning when it comes to the eventual sale or transition of businesses. The good news is that Hispanic business owners know to whom they want to pass on their businesses: seven in ten say to a family member (vs. just over half of general population business owners), yet

• Only 17 percent are concerned about transitioning ownership upon retirement (vs. 32 percent general population).
• Sixty-two percent have not even told the designated successors that they will be taking over the businesses.
• Only 24 percent have a business succession plan in place.
• Of those who have a succession plan in place, close to one third indicated that the plan was prepared by a friend, family member or by the owner himself or herself either alone or with a business partner.

"Latinos in New York City have long understood the meaning of the 'American Dream,'" said MassMutual's Stephen Grossman, General Manager of a New York City office, Financial Marketing Partners. "As business owners, they put incredible pressure on their shoulders to succeed, not just for themselves, but for the good of their families. The good news is that many already know they want to transition their businesses to the next generation; they just need to understand the advantages of having a formal succession plan, the information and tools to help them improve their ability to reach that dream," he concluded.

"In our 40-year history, there has never been a greater economic or business need than now to build future Latino business leaders," said Manny Espinoza, ALPFA chief executive officer, with national headquarters based in New York City. ALPFA—a professional organization for Latinos in business, finance, accounting and related fields—is dedicated to enhancing career opportunities, as well as building leadership and professional skills.

For more information on MassMutual's Business Owner Perspectives study, log on to massmutual.com/bizownerperspectives or see this video. For Spanish-language information about MassMutual and its financial professionals, visit massmutual.com/multicultural/spanish. To learn more about ALPFA, log on to alpfa.org.

*New York StateDepartment of Labor, June 14, 2012.

About MassMutual

Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyholders. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyholders every year since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company's strong and growing network of financial professionals helps clients make good financial decisions for the long-term.

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, LLC, Member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB.

For more information, visit www.massmutual.com or find MassMutual on Facebook, Twitter, LinkedIn, YouTube and Google+.

CONTACT: Karen Lavariere-Sanchez
klavarieresanchez@massmutual.com
413.744.7660

SOURCE MassMutual