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This version of NSU News has been archived as of February 28, 2019. To search through archived articles, visit nova.edu/search. To access the new version of NSU News, visit news.nova.edu.

This version of SharkBytes has been archived as of February 28, 2019. To search through archived articles, visit nova.edu/search. To access the new version of SharkBytes, visit sharkbytes.nova.edu.

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Contact

Division of Public Relations and Marketing Communications
Nova Southeastern University
3301 College Avenue
Fort Lauderdale, Florida 33314-7796

nova.edu/prmc

SharkBytes Archives

Contact

Division of Public Relations and Marketing Communications
Nova Southeastern University
3301 College Avenue
Fort Lauderdale, Florida 33314-7796

(954) 262-5353
(800) 541-6682 x25353
Fax: (954) 262-3954
communications@nova.edu

Study: Lack of Knowledge in Fiscal Planning may Jeopardize Future of South Florida Hispanic Businesses, Economy

Need for continued education is paramount for future success

FORT LAUDERDALE, FLA. . –  Despite reporting healthy revenues, many South Florida Hispanic business owners are underprepared to pass their businesses to the next generation – a critical challenge likely to impact the future viability of Hispanic-owned businesses in the region.

The findings are part of a recent study conducted by the H. Wayne Huizenga School of Business and Entrepreneurship at Nova Southeastern University in Fort Lauderdale titled: The State of South Florida Hispanic Business Owners’ Fiscal Fitness.” The full study will be released at a community panel discussion, which will be held at the Huizenga Business School on Nov. 15 at 5:30 p.m.

“The fiscal fitness of Hispanic small business owners is critical to our region’s economic success,” said David B. Schulman, of DBS Financial Group in Fort Lauderdale, a general agency of  Massachusetts Mutual Life Insurance Company (MassMutual).The research, conducted in conjunction with the Hispanic Chambers of Palm Beach County and sponsored by DBS Financial Group and MassMutual, found Hispanic Business owners believe it is a good idea to plan ahead but do not believe that they are doing a good enough job preparing for the future.  For example, an interesting financial disconnect was observed.  The vast majority of business owners surveyed (90 percent) expected to pass their business on to a family member. However, many did not have a formal succession plan in place, thus leaving their business at risk.

Only about one third of family businesses successfully navigate the transition to the next generation because of poor planning, unresolved family conflicts or the lack of estate preparation, according to research by the Family Firm Institute, Inc., a global family business think tank in Chicago.

“This is our wake-up call,” said Sam Roman, vice president of the Palm Beach Puerto Rican Hispanic Chamber of Commerce.

Roman, who also owns a commercial printing and direct mail company in West Palm Beach, Applied Advertising Solutions Inc., says, “We must empower Hispanic business owners by ensuring we all have access to financial information and education from professionals who are committed to seeing all businesses succeed now and into the future. It is truly a community priority.”

South Florida has the third largest Hispanic population in the country with Miami-Dade County Hispanics being 10 times more likely to own a business than Hispanics in the rest of the country. Broward County and Palm Beach County  report Hispanics make up 16 and 10 percent of their business owners respectively, according to data from the 2010, 2007 U.S. Census Bureau, “Survey of Business Owners.”

The South Florida Hispanic Business Owners study’s findings are a guidepost to MassMutual’s national Hispanic Fiscal Fitness Initiative created to empower Latinos with the information and tools they need to improve their small business’s fiscal health. The study also unearthed trends that shine a light into the overall fiscal health of the South Florida Hispanic Business owner’s family said Suri Weisfeld-Spolter, acting chair of the Doctoral Program at Huzienga School, Nova Southeastern University: “Overall, our findings suggest that Hispanic Business owners believe fairly strongly that it is a good idea to plan ahead.  At the same time, it appears that they have somewhat limited financial knowledge about available products and services for themselves and their businesses. They are very family focused, but are not adequately prepared with plans to transition their businesses to family members or for retirement” said Weisfeld-Spolter.

  • More than half of those surveyed – 57 percent – were only “somewhat or not at all knowledgeable” about how to save for college for their children.
  • Fifty-six percent were “somewhat or not at all knowledgeable” about how disability income insurance could protect their business and their family income if a business owner were to become disabled.
  • Fifty-four percent were “somewhat or not at all knowledgeable” about life insurance – a product designed to protect a family in the event of the death of their primary breadwinner.

“These research findings underscore a need for continued education and partnership on these issues,” added Weisfeld-Spolter.

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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, ‘Like’ MassMutual on Facebook, or follow MassMutual on Twitter.

About DBS Financial Group
DBS Financial Group is one of Massachusetts Mutual Life Insurance Company’s

(MassMutual) general agencies in the state of Florida, meeting the financial needs of more than 26,000 clients. Our long-range vision and expertise in financial strategies will help you get what you want out of life. We can help you fi rst by getting to know you – your dreams, your needs, your goals and financial objectives. This is the foundation for a rewarding partnership. We will then design financial strategies to help promote fi nancial freedom, and give your family a measure of protection if you pass away or become disabled.

DBS Financial Group is deeply committed to providing leadership and support to the

communities in which we live and work. Our community involvement through charitable

organizations and civic events is deeply important to us and our time and resources invested are one more reason we’ve earned the trust from so many in this area. In addition, DBS Financial Group is proud to have distributed more than $21.5 million in free life insurance as part of MassMutual’s LifeBridgeSM Program.

Securities, investment advisory and financial planning services are offered through MML Investors Services, LLC. Member SIPC. 1000 Corporate Drive, Suite 700, Fort Lauderdale, FL 33334. Tel. (954) 938-8800.

About Nova Southeastern University:
Located in Davie, Florida, Nova Southeastern University (NSU) is a dynamic fully accredited Florida University dedicated to providing high-quality educational programs of distinction from preschool through the professional and doctoral levels. NSU has more than 29,000 students and is the seventh largest not-for-profit independent institution nationally. The University awards associate’s, bachelor’s degrees, master’s degrees, specialist, and first-professional degrees in a wide range of fields, including business, counseling, computer and information sciences, education, medicine, optometry, pharmacy, dentistry, various health professions, law, marine sciences, early childhood, psychology and other social sciences.  Classified as a research university with “high research activity” by the Carnegie Foundation for the Advancement of Teaching, NSU was also awarded Carnegie’s Community Engagement Classification in 2010 for the University’s significant commitment to and demonstration of community engagement.   For more information about NSU visit www.nova.edu.

About the H. Wayne Huizenga School of Business and Entrepreneurship:
Serving more than 6,000 students, the H. Wayne Huizenga School of Business and Entrepreneurship at Nova Southeastern University offers bachelor’s, master’s and doctoral degree programs in areas such as accounting, finance, human resource management, public administration, sales and more. The Huizenga Business School also boasts the largest Master of Business Administration MBA sales program in Florida as well as sales certificate. The school is housed in the five-story state-of-the-art Carl DeSantis Building on Nova Southeastern University’s main campus in Fort Lauderdale-Davie, Florida, but programs are available at multiple locations and online. For more information, visit http://www.huizenga.nova.edu/.

Methodology
Through its Hispanic Fiscal Fitness Initiative, MassMutual is committed to providing the tools and resources to help Hispanics acquire the skills and knowledge needed in order to improve their financial health. A key element of the initiative is research aimed at understanding the financial education needs of Latino business owners, entrepreneurs and professionals. Nova Southeastern University conducted the survey of Hispanic business owners in South Florida, which was conducted in English through 2010 and analyzed in 2011.

The study sought to understand knowledge and current use of financial planning among Hispanic business owners and what factors influence them. A total of 169 Hispanic business owners participated in the study via online or paper and pencil surveys in English. Respondents reported high levels of income, business revenues, and education: 59% have household incomes over $100,000 per year; 51% have business revenues over $500,000 per year, and 73% have at least an undergraduate degree.


For additional information contact:
Brandon Hensler, NSU Office of Public Affairs
954-262-5385/5170(office), 954-393-5926(cell), Brandon.Hensler@nova.edu