Latino Businesses Tend to do it Alone Without Organization’s Help

Interestingly, a recent study showed that almost all Hispanic business owners are aware of organizations aimed at assisting them, yet only a third of them have actually joined a group or uses the services of one.

For example, of the 544 Hispanic business owners surveyed in a recent study from across the state of Arizona, only 34% said they were a member of any group or used their services.

The question is: Is the Arizona Hispanic Chamber of Commerce and Chicanos Por La Causa Inc. doing enough to reach out to owners? The problem may not be that groups are failing to provide meaningful services but that they are failing to effectively convey to business owners the real value they provide.

What are the benefits of these groups anyway? Organization leaders and their members say that these groups add value to businesses through networking opportunities and financial service programs. These organizations have so much to offer aspiring entrepreneurs. This includes: network capabilities, professional development and training seminars. In not reaching these Latino entrepreneurs, to some extent it may inhibit the businesses’ ability to grow.

Yet, many business owners say that it takes effort on their part to find the best group to serve their needs and where they feel most comfortable. In addition, the time and financial commitments can be daunting for entrepreneurs with small companies. Some say that the organizations’ input is good if you get to know all the members whereas others say that some organizations are plagued by politics, making it hard for newcomers to establish meaningful connections.

Organizations are taking this into consideration and are now increasing their outreach and adding more value to the membership.

Membership dues range from $200 to $2 000 depending on the size of the business. Any business also can buy an upper-tier membership that includes special perks, ranging from $5 000 to $15 000.

Interestingly, it seems that the key reason why some firms do not join is their size. When you are a small business, it may be that you want business now and it is more important to go after an individual who is ready and willing to do business with you right now.

Of the 544 Hispanic owners surveyed in a study, 51% were sole proprietors. In addition, 37% of the businesses were home-based.

Being involved early on is still important regardless of the size of the business because of the networking opportunities available.

There are so many misperceptions that prevent small businesses from joining. Some think that they are not yet at that level to participate in some of the organizations. Some feel that perhaps they would have had to be in business for 3-5 years to make use of some of the services that organizations offer.

Some deterrents to joining include:

• The upfront cost to join groups can be expensive for owners operating on a start-up budget.

• The geographic location of some associations may deter business owners outside the area from joining

• The membership of certain organizations is dominated by cliques making it difficult for outsiders to break in

• Some complain that larger organizations play favourites when connecting members with potential clients

• Some feel that these organizations are simply not doing enough for them

However, if you really want to prosper, be successful and market your company, there are limited opportunities unless you are part of the small clique.

Franchising is a good way to be in business for your self, not by your self. Contact a Franchise Consultant today.

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