February 25, 2021
A Historic Number of Black Women Own Small Businesses in the US, Finds Annual Small Business Trends Report Released by Guidant Financial
The annual Small Business Trends survey conducted by the Small Business Trends Alliance, recently released the reports findings on Black entrepreneurs including the fact that women make up 46% of Black entrepreneurs.
Women make up 46% of Black entrepreneurs, according to findings from the latest Small Business Trends report released by Guidant Financial.
The report’s findings are based on the annual Small Business Trends survey conducted by the Small Business Trends Alliance (SBTA); a group of companies dedicated to supporting small business with data insights. The SBTA teamed up to conduct a joint survey of over 2,400 current and aspiring small business owners across the nation.
“Despite the challenges of the COVID pandemic and continued inequality, the resilience of Black small businesses owners is clearly demonstrated in our survey results,” said David Nilssen, Guidant’s CEO. “A majority of the respondents cited they were looking to grow their business, showing their determination to successfully emerge from the pandemic, which has deeply affected the Black small business community.”
More Small Business Trends report findings:
- Women make up 46% of Black entrepreneurs, one of the highest percentages of female small business owners of any segment.
- The plurality (33%) of surveyed Black small business owners had Bachelor’s degrees. The next most common level of education was Master’s degrees, at 26%.
- 36% of Black entrepreneurs opened their business because they were ready to become their own boss. 24% wanted to pursue their passion, 17% were inspired with a new business idea, and 17% were dissatisfied with corporate America.
- The plurality (42%) of Black entrepreneurs are very happy as small business owners.
- 43% of Black small business owners used cash alone or with another funding option to start their small business.
- 59% of Black small businesses required $50,000 or less to start up.
- 54% of surveyed Black-owned small businesses were profitable.
- 38% of Black small business owners said a lack of capital/cash flow was one of their biggest struggles in the last 12 months.
- 55% of Black small business owners want to grow their business as opposed to sustaining, opening a new location, or selling.
- 24% of surveyed small businesses lost revenue due to COVID-19. 12% temporarily closed.
- 53% of Black-owned small businesses did not receive financial aid via the Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL).
- 41% of Black small business owners strongly disliked the US government’s response to COVID-19.
- On average, Black small business owners are neutral in their level of confidence about small business in the political climate.
- 41% of surveyed Black small business owners said they didn’t belong to or feel represented by any US political party. 40% said Democrat, while 13% said Republican.