Black businesses could add a potential $190 billion to the economy, but according to a new survey, Black entrepreneurs still face considerable social inequity.
Business software company Intuit QuickBooks surveyed 2,000 business owners in the United States, half of whom were Black, to gain insight into the Black entrepreneurial experience in America. While Black business owners still face a landscape of inequity, the survey also found room for hope: 84% said that their business improved their financial position. Here are more findings from the survey:
- Racism is rife: 79% of Black business owners said they have experienced racism from a customer, 82% said they behave differently with vendors and customers to avoid negative stereotypes, and 86% said they are judged more critically than nonBlack business owners.
- Financial inequity: 57% of Black business owners said they were denied a bank loan compared to 37% of nonBlack business owners. Meanwhile, 79% said they’ve had to use personal funds to pay for business expenses in the past year compared to 65% of nonBlack business owners. The most popular reason for starting a business was developing a new income stream; while for nonBlack respondents, the top reason for starting a new business was wanting to be their own boss.
- Entrepreneurship is a good option: Despite the inequities, 84% of Black business owners said their business has improved their financial position, and 85% said they were able to pay themselves in 2022. Furthermore, 81% of Black business owners reported paying themselves more in 2022 than in 2021, and 79% predicted a profitable 2023.
While some argue it may take 200 years to close the racial wealth gap, entrepreneurship is clearly a way to create more wealth, and 73% of Black business owners are optimistic that this gap will decrease over the next hundred years.
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