Friday, November 29, 2019

Hispanics, Not Trump, are the Biggest Engine Of U.S. Economic Growth

Over the medium-term horizon, Hispanic labor will become an ever more important source of US...+] Source: 
Written by: Mayra Rodriguez Valladares
Contributor Banking & Insurance

Over the medium-term horizon, Hispanic labor will become an ever more important source of US... [+] GETTY

In ground breaking research that has significant implications for U.S. policymakers and financial institutions, Peterson Institution for International Economics (PIIE) researchers found that “The Hispanic community in the United States has contributed significantly to US economic growth in recent decades and will continue to do so over the next 10 to 20 years.”

Gonzalo Huertas PIIE

Research Analyst Gonzalo Huertas and Senior Fellow Jacob Funk Kirkegaard, in their recently published working paper, The Economic Benefits of Latino Immigration: How the Migrant Hispanic Population’s Demographic Characteristics Contribute to US Growth, present an incredible diversity of quantitative analysis that proves that “The outsized contribution of Hispanic immigrants to US economic growth results from the quality of the workforce, not just quantity.” Moreover, in what goes against numerous unfortunate, negative stereotypes “Hispanic arrivals have exceeded contemporary native-born Americans and some other migrant groups in their entrepreneurial capabilities and integration into economically relevant parts of the workforce.”

Jacob F. Kirkegaard PIIE

Given the growth of Hispanics in the U.S. workforce, they represent significant market opportunities for every type of financial institution, including banks, insurance companies, asset managers, and fintech. Unidos US, a non-partisan Latino civil rights and advocacy organization projects that in five years, Hispanics will account for about 20% of the U.S. workforce and over 30% by 2050.

Hispanics will soon be 1/3 of the U.S. workforce
Hispanics will soon be 1/3 of the U.S. workforce UNIDOUS

Huertas’ and Kirkegaard’s research shows that “the increase in Hispanic labor could contribute around 0.21 percentage points to annual real GDP growth in the United States over the next three decades if the Hispanic community catches up to the rest of the country in labor productivity.” By 2025, the increase in employed Hispanic labor could contribute more to US GDP growth than non-Hispanic labor.

Projected contribution to GDP growth from changes in employed labor PIIE

Huertas and Kirkegaard also found that Hispanics are the largest demographic group in new opportunity entrepreneurship. "While the US economy has exhibited gradually declining economic dynamism in recent decades, and the share of new firms being created each year has fallen in a trend accelerated after the Great Recession, foreign-born and Hispanic populations have become engines of US entrepreneurship, especially since the Great Recession.” The growth of the Hispanic population and the relatively younger composition of the Hispanic community are key factors driving entrepreneurship developments. Other factors, such as a decline in the historical gap between the Hispanic unemployment rate and the national average, would also contribute positively to this trend.

US rate of new opportunity-driven entrepreneurs, by ethnic group and Hispanic origin, 1996–2016 PIIE

“One issue that we raise, in light of higher opportunity-driven entrepreneurship rates,” said Kirkegaard “is that the Hispanic community needs ample access to financing and business services to facilitate growth of their businesses. It certainly would seem an obvious case where non-banks and fintech innovation could play a role.”

Unfortunately, Hispanics, often struggle to obtain credit. According to Sabrina Terry, UnidosUS Senior Strategist of Economic Policy Project, Policy and Advocacy, “Entrepreneurs still struggle to access credit. They may end up at a predatory lender. If they cannot get a loan, they will end up with a non-bank with a loan with a much higher rate.” Part of the problem she explained, is that many Hispanics’ largest expenses, such as rents and mobile phone payments, often do not appear in a typical consumer credit report. “Financial institutions need to learn about other metrics, alternative data, to better understand the credit worthiness of Latinos and that show that they are responsible and can pay back their debt,” said Terry.

Sabrina Terry, Senior Strategist UNIDOSUS

When I discussed the PIIE research with financial advisors at Stamford-based Fifth Street Advisors, Partner and Co-Founder Abelardo Curdumí, observed that “It is interesting to be able to corroborate what we have already been observing anecdotally. In our wealth management business, we see a robust demand for our services from Hispanics who are both professionals and entrepreneurs. They have the same aspirations as the rest of the population and they need the same sophisticated financial planning to manage, conserve and grow their wealth.”

Abelardo Curdumí, Partner and Co-Founder FIFTH STREET ADVISOR

Of great importance not only to Hispanics, but also to the whole country, Huertas and Kirkegaard found that “Hispanic high school graduation rates have risen from just over 60 percent to almost 90 percent in the last 20 years, reaching levels just below the currently historically high US average high school graduation rate of 93 percent.” However, Hispanics “have ground to cover to catch up with the US average in attaining higher education degrees.” Curdumí stated that “A definite common thread is Hispanics’ healthy respect for education regardless of where they come from or whether they are immigrants or born in the United States. This is acquired from parents who are willing to forgo everything as long as the children have access to a good education. We see that this high value on education continues to be passed on to the next generations.”

Other important demographic factors for financial institutions are that Hispanics are having fewer children, which can mean, more disposable income for these individuals. According to PIIE, “even when the recent declining Hispanic fertility and net migration data is taken into account, the community will still account for the majority of the contribution to GDP growth from labor input in the future, a finding that underlines that it is important to continue fostering increased labor productivity among Hispanics. The continued numerical growth of the Hispanic community makes it imperative that their positive trend in educational attainment be sustained and strengthened to include the highest tertiary levels of education. Only then can the Hispanic community reap the full demographic dividend and convergence in wage levels be achieved.”

US assumed and actual life expectancies 2014, 2016, and 2020, at birth and at age 65 SOURCES: US CENSUS BUREAU (2014) AND CDC (CENTERS FOR DISEASE CONTROL AND PREVENTION) (2018).

Importantly, the life of expectancy of Hispanics is higher than that of other demographic groups. This poses good opportunities for financial advisors who work providing financial services, such as retirement plans, insurance, annuities, and long-term care plans. According to Huertas and Kirkegaard “higher levels of Hispanic opportunity-driven entrepreneurship than among the rest of the US population, emphasizes the importance in securing the community full access to financing and other business support crucial to grow start-up businesses to scale.”

Business Symposium presentation at the University of St. Thomas Houston (UST) about "Successful Consulting: Turning your passion into profit"

Learn about the reality of entrepreneurship, the importance of learning what problem you are solving, and having a personal advisory support group. Then, I talked about the importance of determining your company vision, mission and values, of having a realistic money talk to achieve profit & Productivity. Finally, I close with: Can you have it all? Passion, purpose & profit.

Soledad Tanner. MIB

Thursday, November 21, 2019

Four common tax errors that can be costly for small businesses


A small business owner often wears many different hats. They might have to wear their boss hat one day, and the employee hat the next. When tax season comes around, it might be their tax hat.

They may think of doing their taxes as just another item to quickly cross off their to-do list. However, this approach could leave taxpayers open to mistakes when filing and paying taxes.

Accidentally failing to comply with tax laws, violating tax codes, or filling out forms incorrectly can leave taxpayers and their businesses open to possible penalties. Using IRS Free File or a certified public accountant is the easiest ways to avoid these kinds of errors.

Being aware of common mistakes can also help tame the stress of tax time. Here are a few mistakes small business owners should avoid:

Underpaying estimated taxes

Business owners should generally make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed. If they don’t pay enough tax through withholding and estimated tax payments, they may be charged a penalty.

Depositing employment taxes
Business owners with employees are expected to deposit taxes they withhold, plus the employer’s share of those taxes, through electronic fund transfers. If those taxes are not deposited correctly and on time, the business owner may be charged a penalty.

Filing late

Just like individual returns, business tax returns must be filed in a timely manner. To avoid late filing penalties, taxpayers should be aware of all tax requirements for their type of business the filing deadlines.

Not separating business and personal expenses

It can be tempting to use one credit card for all expenses especially if the business is a sole proprietorship. Doing so can make it very hard to tell legitimate business expenses from personal ones. This could cause errors when claiming deductions and become a problem if the taxpayer or their business is ever audited.

Cameron Business Symposium November, 22 2019 Speakers

Cameron Business Symposium November, 22 2019 Schedule

Tuesday, November 12, 2019

Mujeres millennials: ¿cómo pueden tomar mejores decisiones financieras?

Foto de Bruce Mars / Pexels


No solo se trata de mejoras educativas y de oportunidades. Uno de los más grandes desafíos de nuestra región es involucrar más a mujeres millennial en decisiones financieras socialmente responsables.

Sea que hablemos de mujeres o de millennials en general, ambos grupos tienen los índices más altos de interés por realizar inversiones de manera socialmente responsable. Sin embargo, contra lo que pudiera pensarse, es posible que en este rubro ninguno de estos grupos sea considerado tomador de decisiones. Aún así, los números demuestran que 70% de mujeres están interesadas en realizar inversiones de impacto, y muchos informes muestran que las mujeres dicen de manera categórica que quieren un retorno tanto financiero como social de sus inversiones.

Si nos enfocamos en mujeres jóvenes, los datos de Morgan Stanley muestran que el 86% de millennials (definidos en términos generales como aquellos que nacieron entre los años 80 y 2000) están interesados en inversiones socialmente responsables. Sin embargo, al observar la intersección entre estas dos poblaciones, encontramos que las mujeres de la generación del milenio tienen menos probabilidades de tomar decisiones de inversión por sí mismas en comparación con las generaciones anteriores. De hecho, el 61% de las mujeres milenarias encuestadas por UBS dejan las decisiones de inversión a sus esposos, más que cualquier otra generación reciente.

El enigma millennial

¿Por qué las mujeres millennial, más educadas, más exitosas y con un criterio más abierto que nunca, están dejando las decisiones importantes sobre el dinero a otra persona? ¿Por qué las mujeres más jóvenes están perpetuando el status quo en lugar de transformarlo? ¿Acaso los datos de América Latina y el Caribe respaldan estos datos de UBS sobre mujeres millennial con tendencias similares, o es solo un fenómeno de Estados Unidos y Europa?

Las mujeres millennial que no toman sus propias decisiones de inversión son importantes por tres razones económicas principales:

  • Es probable que estén perdiendo oportunidades para apoyar vehículos de inversión de impacto. Cuando entregan sus decisiones financieras a sus esposos, es posible que las mujeres no inviertan con firmeza en los problemas locales o globales que les interesan, ya sea atención médica, educación, conversación, microfinanzas, igualdad de género, agricultura sostenible, desarrollo comunitario y demás. Si las mujeres no están al volante de sus inversiones, es posible que un cambio social significativo no se dé por completo.
  • Es posible que no maximicen su propia creación de riqueza ni creen un plan realista para su futuro. Los eventos y situaciones de la vida de muchas mujeres introducen barreras para crear riqueza. Una brecha salarial del 26% en la región, la interrupción de las carreras y el trabajo flexible también pueden tener un impacto perjudicial en la creación de riqueza de las mujeres, y sus estrategias de inversión se benefician al tomar en cuenta estos factores. En promedio, las mujeres tienden a vivir más que los hombres en América Latina y el Caribe por 6,3 años, y esto hace que sus necesidades de planificación de la riqueza a menudo deban abarcar un horizonte temporal más prolongado. Estas mujeres se beneficiarían de estrategias de inversión que reflejen estas realidades.
  • Se acerca una transferencia masiva de riqueza, y las mujeres latinas deben estar preparadas. A nivel mundial, las mujeres heredarán US$ 28,7 billones en riqueza intergeneracional en los próximos 40 años. Sabemos que las mujeres millennials se sienten cómodas invirtiendo en otras mujeres de manera filantrópica, pero la pregunta es: ¿cómo hacer la transición de su zona de confort filantrópica a la inversión?
Entonces, ¿cómo aumentamos el conocimiento, la confianza y la cantidad de inversionistas millennials activas en la región de ALC y los guiamos a opciones de inversión socialmente responsables?

La hoja de ruta para el empoderamiento financiero
  • Ofrezcamos mejores consejos financieros y más personalizados, idealmente de asesoras financieras altamente capacitadas (¡y también de hombres!) en ALC, que refuercen que tanto el impacto social como el rendimiento son posibles en las inversiones. Un buen asesoramiento financiero puede ayudar a las mujeres a superar algunos de sus desafíos de riqueza, reforzar su confianza financiera y evaluar mejor el riesgo. Jacki Zehner, de Women Moving Millions, señala que las mujeres responden particularmente bien a un enfoque personalizado del asesoramiento financiero centrado en el fomento de la confianza.
  • Crear centros de entrenamiento para mujeres que inviertan en ALC alrededor de las redes existentes de mujeres. Debemos crear modelos de construcción de comunidades basados en relaciones que saquen a las mujeres de un formato de “enseñanza” y para fomentar el diálogo entre ellas. Estos grupos pueden ayudar a las mujeres millennial a aprender de sus pares sobre cómo se convirtieron en inversionistas.
  • Alinear productos con potenciales inversionistas mujeres. Hay un número creciente de fondos mutuos y fondos de inversión que están democratizando el acceso a inversiones de impacto y con enfoque de género, aunque la oferta en ALC aún es limitada. Se puede aprender mucho de la accesibilidad de estos vehículos líquidos, con tarifas relativamente bajas y mínimos bajos, como rampas de acceso para millones de inversionistas (hombres y mujeres) que apoyan la equidad de género a nivel mundial.
  • Ayudar a los inversionistas a dar el salto de productos individuales a carteras. Cada vez hay más carteras de enfoques de género más diversificadas para abordar la violencia de género, la falta de representación crónica de las mujeres en el liderazgo y las necesidades de atención médica de las mujeres.
  • Aumentar la investigación de las distintas necesidades y opiniones de mujeres millennials en ALC para ayudar a guiar la creación de vehículos y estrategias de inversión para desarrollar inversionistas en la región. Los datos son increíblemente escasos en ALC sobre el tema y los administradores de activos, los bancos de desarrollo, los asesores financieros y las mujeres inversionistas –entre otros– podrían tener un papel más activo en la recopilación de estos datos para avanzar en este campo.

    Las mujeres de la generación del milenio son actores clave en la conversación sobre inversión con enfoque de género (GLI) que ahora está entrando a ALC. Para obtener más información sobre los desafíos y oportunidades que presenta GLI en ALC, consulte el documento recientemente publicado por BID Invest, “Inversión con un enfoque de género: Cómo las finanzas pueden acelerar la igualdad de género para América Latina y el Caribe”, un informe pionero en su tipo que destaca esta tendencia creciente en la región.

Adriana en complicidad. Entrevista a Soledad Tanner # 7

En esta entrevista con Adriana Calhoon hablamos acerca de la labor a favor de la comunidad de la organización "Women on the Move". Además contestamos las siguientes preguntas que le ayudarán a mejorar su negocio:

¿Como administrar su negocio en un escenario de una posible recesión? ¿Como manejar la contabilidad de su empresa? ¿Cuales son las medidas de emergencia que hay que tomar en una recesión? entre otros temas.

Contrate un experto para que lo asesore y así incremente la utilidad de su negocio. Soledad Tanner Consulting le da estrategias para que su negocio este al 100%. Escuche la entrevista por tips y contactemos al: (832) 998 2136 o a Para mas información:

Mas acerca de Adriana Calhoon - AC Media TV:

Sunday, November 10, 2019

The Trillion-Dollar Opportunity in Supporting Female Entrepreneurs


There is much discussion and debate about how to support female entrepreneurs — and rightly so. Currently, women-led businesses are less likely to survive, despite evidence that their startups are often highly successful. New analysis by Boston Consulting Group (BCG) shows that if women and men around the world participated equally as entrepreneurs, global GDP could ultimately rise by approximately 3% to 6%, boosting the global economy by $2.5 trillion to $5 trillion.

So how do we support female entrepreneurs? The focus is often on improving access to credit (financial capital) or providing training to help women build new skills (human capital) — two areas critical for improving the success of women-led businesses. However, another key factor in the success of these businesses tends to be overlooked: access to networks.

Working with public, private, and social sector clients around the world, we have seen first-hand how potent such networks can be. And we have also come to understand that these supportive mechanisms are in short supply.

The good news is that action in all sectors can address this gap.

The Gender Gap in Entrepreneurship

To better understand the entrepreneurial gender gap we analyzed 2014-2016 data from the Global Entrepreneurship Monitor (GEM), breaking down entrepreneurship and business sustainability rates by gender and across 100 countries. Among the findings:

  • Across all six global regions, the percentage of working-age men who start a new business exceeds the corresponding percentage of working-age women who do by roughly 4 to 6 percentage points.
  • Four countries — Vietnam, Mexico, Indonesia, and the Philippines — have managed to buck the global norm; more women than men launched new businesses in these countries in 2016.
  • In 50 of the 100 countries studied, the gender gap in founding startups (the percent of men versus women who start a new business) narrowed from 2014 through 2016, with the biggest gains occurring in Turkey, South Korea, and Slovakia.
  • In 40 countries, however — most notably in Switzerland, Uruguay, and South Africa — the gender startup gap is widening.

Although the gender gap in startup activity is fairly consistent across most countries, the gap in long-term business success varies more widely. In all regions except North America, women-led companies have lower sustainability levels than companies led by men. In the Middle East and North Africa, for example, women’s businesses are about 50% as likely as men’s to remain in operation 3.5 years after creation, while in Latin America, the women’s businesses are 82% as likely.

Drivers of the Gender Gap

Our research indicates that there are many reasons for these deficits, including differences in access to financial support. According to a BCG analysis of 2018 data from MassChallenge, a US-based global network of accelerators, investments in companies founded or cofounded by women averaged $935,000, which is less than half the average of $2.1 million invested in companies founded by male entrepreneurs. This disparity exists despite the fact that startups founded and cofounded by women actually performed better over time, generating 10% higher cumulative revenue over a five-year period: $730,000 for women compared with $662,000 for men.

This funding challenge is well documented, but our work also identified another, underappreciated challenge — women’s relatively limited access to “social capital” in the form of robust support networks.

Again and again we find that networks are a critical factor for small business success. In low- and middle-income countries, for example, we studied how knowing at least one other entrepreneur (a proxy for entrepreneurial networks) impacted women-led businesses. We found that stronger and broader networks are linked to smaller gender gaps in business sustainability and improved access to a variety of funding sources. Research by other groups, including the Asia Foundation, has found that peer-to-peer networks encourage women to set higher aspirations for their businesses, plan for growth, and embrace innovation.

Building a Better Network

Large corporations can play a big role in cultivating networks. In many parts of the world, women-led small businesses are a significant element in global supply chains, whether as distributors, retailers, or suppliers. Companies can foster networks that help those female entrepreneurs gain insight and advice on everything from how to finance their operations to how to manage inventory. Consumer-packaged goods, for example, can partner with non-profits, trade associations, or local chambers of commerce, to bring together women who run small shops that distribute the company’s products.

Supporting women-led businesses in this way is good business. If they do it well, companies can build a more diverse and reliable supply chain. BCG research has found this is one of many opportunities that companies have to advance societal goals while boosting returns for shareholders.

All organizations that support female entrepreneurs — including companies, international donor groups and governments — can magnify their impact by creating and building out networks for women. In our experience, the best networks are built on the principles of intent, inclusion, and interaction:

Intent: From the start, a network must have a clearly defined purpose. Networks should be much more than a glorified Rolodex. What can women gain by joining the network? Will they get access to human and financial capital, as well as social capital? How can the network help women achieve tangible business goals? Endeavor, for example, has a clear mission with its mentor and investor network to select and mentor high-impact entrepreneurs from around the world and accelerate the growth of their ventures, providing business advice and better access to financial capital. (Full disclosure: BCG has supported, and continues to partner with, Endeavor.)

Inclusion: Next, choose participants carefully. The best networks have a highly dedicated founder, whether that is an individual, an NGO, a corporation, or another organization with a long-term interest and presence in the community. They also have an active membership, and a diverse membership base, including a mix of new entrepreneurs and more established business owners, ideally with varied cultural backgrounds. To drive engagement and commitment, network founders can consider charging membership fees, instituting mandatory attendance requirements, and requiring interviews or references for new members.

Interaction: Structure the network to facilitate both formal and informal interactions. Formal training has its place, but informal, peer-to-peer interactions are crucial to building trust and ensuring that the network stays relevant over time. Online platforms can be critical to success in this area. Nigeria’s Cherie Blair Foundation for Women, for example, has formal mentoring programs, but it also encourages informal relationships, idea exchanges, and collaboration through its online forum which members and alumni can access on demand, whenever they have an internet connection.

It is no exaggeration to say that female entrepreneurs have the power to change the world. Closing the gender gap in entrepreneurship and fueling the growth of women-owned enterprises will unleash new ideas, services, and products into markets around the world. In order for that to happen, we need to ensure women have access to all forms of capital, particularly social capital in the form of powerful networks.

Shalini Unnikrishnan is the Global Lead for Societal Impact in the Consumer and Social Impact practices at Boston Consulting Group.

Roy Hanna is a principal at Boston Consulting Group’s Philadelphia office and is an expert on large-scale change and social impact.

Saturday, November 9, 2019

What is the Leadership Style of the Future CFO?

Driving innovation and improving business outcomes

As the role CFO evolves to strategic business partner their leadership style has to adjust to accommodate the quick pace of innovation, unsettled global markets, heightened competition and other disruptive factors.

To effectively lead, the future CFO need to balance their finance duties with a need for innovation and agility, as they are actively involved in ensuring better business outcomes and developing new revenue streams. “Today’s CFOs are partnering with other members of the C-suite in driving business strategy, so a CFO with a strong accounting or controlling background is no longer enough, you need strong business acumen with greater focus on people” said Anthony Coletta, CFO of SAP North America.

John Gimpert, National Programming Chair & Chicago Regional Director at The CFO Leadership Council, concurred, noting that “high intellect and strong functional skills are no longer sufficient.” The organization’s CFO leadership framework includes enhancing their ability to lead themselves and others, knowing the organization and delivering performance. Attributes essential to delivering performance encompass being diligent about driving results, setting priorities effectively, possessing an open, problem-solving mindset, and adopting an innovative and adaptive approach to change.
The Skills Modern Finance Leaders Need

The future CFO needs to be a thought leader who fosters an open and collaborative culture to build next-generation practices. “That means empowering the team and giving them more control over the day-to-day finance operations,” Coletta said.

To succeed in their new leadership roles, senior finance executives need to be adept at interacting with people inside and outside of their organization. “There is a huge shift in how the CFO spends their time,” Coletta said. The new brand of finance leader must position themselves as an ambassador of innovation by having an open dialog with sales, marketing, IT and other stakeholders.

The future CFO will be an architect of growth and value creation, according to Coletta. “Finance has an impact at every step of the value chain which requires building bridges across the organization and across various finance functions.”

One area where modern CFOs are leading is talent acquisition to foster the next generation of leaders. “I spend a good portion of my time mentoring and encouraging members of the finance team and ensuring that we hire or promote the right people,” Coletta noted. A successful finance team will include people with different backgrounds and demographics, but also a diversity of viewpoints.

Going forward, CFOs will also interact more frequently with those outside of the organization to understand and improve their connection to the finance function and the business overall. “I spend way more time with partners and customers in order to improve those relationships and understand their business imperatives and how finance can better serve their needs with innovative solutions,” Coletta said.

Coletta offers this advice as CFOs shift leadership styles:
  • Focus on the culture, not solely on optimizing processes
  • Understand the broader technology trends and how to translate into core business
  • Continuously invest in learning / people’s development
  • Be an agent of the change you want to see
Click here for more information about the future leadership style of the CFO.

Author: Anthony Coletta

As chief financial officer (CFO) for SAP North America, Anthony Coletta is steering the business in a territory that spans the United States and Canada, fostering operational excellence and overall financial health of the region. His role extends to driving the cloud business in SAP’s largest market and leading strategic initiatives as part of Global Finance leadership team