New research shows that latino business owners are making significant strides compared to a d cypha electricity futures

As an example, findings indicate that Latino business owners are notably more likely than in the past, and more likely than the national sample, to have a succession plan in place. Sixty nine percent of Latino owners have a written succession plan and 59 percent have a buy-sell agreement in case of death (and 52 percent in case of disability). Also, Latino owners are significantly (48 percent) more likely than the national sample to report funding their buy-sell agreements with cash flow from their business.

"Our research found that Latino entrepreneurs are generally taking significant steps in their business and financial planning and are more likely to be motivated by family and community," said David Hufnagel, Latino Market Director, MassMutual. "The study shows significant progress for the next generation of Latino business owners. Many indicated that they have the necessary resources in place to help protect their company in case of unforeseen events, and that there is still room for improvement."

More good news: Nearly all survey respondents reported having gone through the financial planning process and the majority of respondents do it every year. Additionally, Latino business owners are also more likely to have had their business valued (73 percent) in the past three years than the national sample (63 percent). In terms of employee benefits, they are also more likely to offer financial planning benefits to their top employees.

When it comes to their future and retirement, Latino business owners are more likely than the national sample to say they will retire but haven’t given it much thought (31 percent vs. 25 percent of the national sample). Only 24 percent say they plan to retire in the next five years, likely driven by the younger average age of Latino business owners.

Latino business owners are also less likely planning to fund retirement through personal savings, a retirement account or Social Security but are more confident of their estimates. Furthermore, 63 percent of Latinos are very or extremely confident regarding their estimates on sources of retirement income, significantly higher than the national sample (53 percent).

Latina business owners are less likely to have gone into business for a lifestyle of independence, and prioritize financial planning for personal over business. They are also more likely to offer benefits to key employees than other women owners.

Overall, Latino business owners’ exit strategy and plans to pass on the business are similar to the national sample. When it comes to their ideal exit strategy, 34 percent of Latinos plan to leave business to family member (vs. 30 percent of the national sample), 21 percent would like to sell business to key employee (vs. 21percent of national sample), and 14 percent would like the business sold to an outside buyer (vs. 17 percent of the national sample).

The 2018 MassMutual Business Owners research was conducted by Hawk Partners for MassMutual via an online survey of 284 Latino and 801 general population business owners from December 13th – January 15, 2018. The sampling margin of error for this study is +/– 4.9% percentage points when looking at the results for the total small business population. These are at a 90% confidence level.

MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. MassMutual offers a wide range of financial products and services, including life insurance, disability income insurance, long term care insurance, annuities, retirement plans and other employee benefits. For more information, visit www.massmutual.com.