2024 Latino Small Business Survey

Verizon Business’s second annual Latino Small Business Survey, conducted in March and April of 2024 by Morning Consult, reveals that Latino small business owners (SBOs) are prioritizing technology investments this year, leveraging digital tools to update their processes, addressing labor shortages, and upgrading their digital infrastructure. The survey solicited responses from 500 Latino small business owners (SBOs), as well as 500 non-Latino SBO.

Key findings from the Latino SBOs survey include:

• 86% use digital tools and technologies to change their processes and customer experience
• 81% use digital tools to create new money-making opportunities

• 81% say their business added or upgraded high-capacity internet services in the past year; 77% added/upgraded high-speed internet
• More than half (53%) transitioned to digital-first operations—6 points higher than last year

Coupled with the focus on investing in tech, comes a real concern about cybersecurity. The Verizon Business survey also shows that Latino SBOs are focused on security: 62% of respondents say they implemented new technology systems to ensure security, which represents a 13-point jump from last year. Among the Latino SBOs who experienced a cybersecurity incident or breach, 60% cited phishing as the cause. In summary, Latino SBOs are both identifying opportunities and defending against perceived weaknesses in the economy.

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Latino and non-Latino SBOs reported similar levels of economic concern, however, there is a stark contrast in how they view the labor challenge: 71% of Latino SBOs believe labor shortages are changing employees’ expectations of the business, compared with only 47% of non-Latino SBOs. More than half (58%) of Latino SBOs say they implemented new systems of technology for the express purpose of compensating for a shortage of workers. This marks a 17-point jump from the same study commissioned by Verizon Business last year.  Sixty-one percent provided new devices or technology to help attract or retain talent, which is 13 points higher than last year. 

As Latino SBOs continue to implement new technologies to digitize their operations, they gravitate toward external support to facilitate the evolution of their business. More than 4 in 5 say they’re interested in programs offering the ability to speak with IT experts about new technologies (88%) and eCommerce experts about their business’s digital presence (87%). Latino SBOs are most likely to report having paid for outside help around finance/accounting (53%), technology (51%), and branding/marketing (50%).

Though majorities of SBOs across the board show enthusiasm for external support, Latino SBOs express need for certain kinds of external support in higher proportions. The widest gaps between Latino and non-Latino SBOs emerge when needing external support for delivering products and services differently (83% for Latino SBOs to 56% for non-Latino SBOs), implementing new technology for onboarding (83% to 58%), and transitioning to new ways of working (82% to 58%). Large gaps also exist with regard to demand for access to certain resources or programs, such as the ability to join a network of minority-owned business leaders (86% to 65%), ability to speak with legal experts (88% to 73%), and waived late fees from service providers (88% to 70%).

Having invested heavily in digital transformation over the last few years, Latino SBOs also express emerging support needs, including digital/social media marketing strategies and AI implementation and application.

Concern about the economy remains high among Latino SBOs. More than 3 in 4 (79%) say they’re concerned about the U.S. economy and the possibility of an economic recession. While concerns about the economy remain consistent with last year’s findings, anxiety around personal job security grew to 74%, which represents a marked 17-point hike. Latino SBOs are also worried about how the economy may impact their customer relationships, with the majority expressing moderate or high concern about the ability to create relationships with new customers or clients (76%—up from 62% last year) and maintaining relationships with existing customers or clients (76%—up from 62% last year).

In spite of those persisting economic concerns, Latino SBOs remain optimistic about the future, expecting the following conditions to be much or somewhat better over the course of the next several months:

• Their business’s financial security (74%)
• Their financial security (74%)
• Their job security (71%)
• Latino-owned small businesses (70%)
• All small businesses (70%)

When asked about next year, 87% say they believe their business will be better off financially.

That enduring optimism in the face of economic uncertainty may owe at least in part to the power of their community and their families. In particular, the family unit also plays a large role in the day-to-day operations of these businesses, with relations across the age spectrum working in both a paid and unpaid capacity. Consider the fact that Latino small business owners have family working at the business at a significantly higher rate than non-Latino businesses. For instance, 26% of Latino SBOs have younger relatives working at the business in an unpaid capacity as opposed to 10% of non-Latino SBOs and 31% of Latino SBOs compared to 23% of non-Latino SBOs have younger relatives working in a paid capacity. 

As it relates to their local economies, 68% of Latino SBOs expect an improvement in their local economy over  the next few months as opposed to 48% of non-Latino SBOs. Additionally, SBOs almost universally report satisfaction with their work-life balance (95%). Latino SBOs aren’t blind to the economic challenges, but close-knit workforces and high satisfaction buoys their optimism. A resilient positive outlook coupled with continuing investment in digital tools may form the foundation of long-term growth for Latino SBOs.