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Women make up forty six percent 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.
- Women make up 46 percent of Black entrepreneurs, one of the highest percentages of female small business owners of any segment.
- The plurality (33 percent) of surveyed Black small business owners had Bachelor’s degrees. The next most common level of education was Master’s degrees, at 26 percent.
- 36 percent of Black entrepreneurs opened their business because they were ready to become their own boss. Twenty-four percent wanted to pursue their passion, 17 percent were inspired with a new business idea, and 17 percent were dissatisfied with corporate America.
- The plurality (42 percent) of Black entrepreneurs are very happy as small business owners.
- 43 percent of Black small business owners used cash alone or with another funding option to start their small business.
- 59 percent of Black small businesses required $50,000 or less to start up.
- 77 percent of Black entrepreneurs started their own new independent business as opposed to starting or buying a franchise location or buying an existing small business.
- 54 percent of surveyed Black-owned small businesses were profitable.
- 38 percent of Black small business owners said a lack of capital/cash flow was one of their biggest struggles in the last 12 months.
- 55 percent of Black small business owners want to grow their business as opposed to sustaining, opening a new location, or selling.
- 44 percent of Black-owned businesses have only two to five employees. 36 percent are solo ventures.
- 24 percent of surveyed small businesses lost revenue due to COVID-19. 12 percent temporarily closed.
- 53 percent of Black-owned small businesses did not receive financial aid via the Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL).
- 41 percent 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 percent of surveyed Black small business owners said they didn’t belong to or feel represented by any US political party. 40 percent said Democrat, while 13 percent said Republican.
Methodology
The Small Business Trends Alliance, an organization comprised of Deluxe, Guidant Financial, MyCorporation, Flippa, FRANdata, and AP Intego, conducted a joint email survey from December 1, 2020 to December 18, 2020 of more than 2,400 current and aspiring small business owners nationwide.
Headquartered in Bellevue, WA Guidant Financial helps business owners secure financing to start, buy, or grow a business. An industry leader in business and franchise financing, Guidant works with new and existing entrepreneurs to identify, evaluate, and deploy customized financing solutions. Their services include, but are not limited to, 401(k) business funding, SBA loans, unsecured credit, and portfolio loans. In total, Guidant has helped over 20,000 entrepreneurs in all 50 states to invest more than $4 billion in funds to start small businesses, resulting in more than 85,000 U.S. jobs created.
Visit Guidant at guidantfinancial.com.
About the Small Business Trends Alliance (SBTA) Founded in 2019, the Small Business Trends Alliance (SBTA) is a group dedicated to supporting small businesses with data trends and insights. These data-backed insights are intended to help small business owners confidently make key decisions, and to bring transparency to small business for prospective entrepreneurs to learn more about their options. The 2020 SBTA includes Guidant Financial, Deluxe, Flippa, MyCorporation, FRANdata, and AP Intego.
