New report spotlights women and minority business owners, including challenges and overall business and economic outlook

Charlotte, North Carolina, October 5, 2022 /PRNewswire/ — Despite headwinds from supply chains, inflation and labor shortages, the 2022 Women & Minority Business Owner Spotlight, a new Bank of America report examining entrepreneurial prospects across the country, finds Small business owners have strong expectations for the year ahead. The report is based on her survey of more than 1,300 small business owners across the country and adds additional insights on gender and ethnicity, which saw earnings expectations rise to their highest in seven years. , found that expansion plans have increased significantly since spring. Over the next 12 months:

• 66% of business owners expect revenue growth, the highest level in seven years
• 52% plan to expand their business, up from 37% this spring.
• 83% plan to raise capital for their business, up from 70% this spring.

With a recession looming, 77% of entrepreneurs say their business is prepared to weather it.

“Looking into 2023, small business owners are optimistic about the future despite ongoing economic challenges and uncertainties.” Said Sharon MillerSmall Business President and Head of Specialty Banking and Lending at Bank of America. “This data underscores what we have seen time and time again: the continued resilience of small business owners whose success continues to be the foundation of our local and national economies. It is that

Inflation and commodity prices are top concerns
When asked about their main concerns, small business owners identified inflation (75%) and commodity prices (69%), followed by potential recession (67%) and the US political environment (66%). , followed by the interest rate (65%). A majority (88%) say inflation and supply chain issues (80%) continue to affect their business, leading to higher prices.

Hiring plans are up significantly, with wages rising to attract talent
Amid the labor shortage, employers report hiring plans are at their highest level in seven years, with 38% planning to hire in the next 12 months. A majority of business owners (61%) said labor shortages are currently affecting their business, up from 41% in the spring. Business owners affected include:

• 49% are working more hours
• 31% are raising wages to attract competitive talent
• 30% are struggling to fill vacancies

The report also includes specific insights on the perspectives of female, black, Hispanic Latino, Asian American and Pacific Islander (AAPI) business owners, including access to capital, business prospects, , social change, communities and other important areas.

Women and minority entrepreneurs face barriers to access to capital
More than a quarter (29%) of female business owners surveyed say they do not believe they will have equal access to capital, compared to 40% of Black business owners and 27% of Hispanic-Latino business owners , 22% of AAPI business owners responded. said the same thing.

Minority business owners report greater difficulty accessing business finance than the national average, with 46% of Black and Hispanic-Latino business owners and 55% of AAPI business owners having personal challenges reported to have faced Black business owners are most likely to be concerned about getting credit, with 57% of black business owners surveyed expressing concern compared to 45% of them overall. was.

Female business owners project growth, but are less optimistic than men
Female business owners have an overall positive business outlook, but are less confident about their business and the wider economic climate than their male colleagues. Over the next 12 months:

• 63% expect increased revenue compared to 68% of male business owners
• 47% plan to expand their business compared to 57% of male business owners.
• 38% believe the domestic economy will improve compared to 50% of male business owners

Overall, female business owners say they face more challenges in business than male business owners, with a majority (59%) striving harder to achieve the same success as men. I have to work to.

Black business owners are advocating for social change through business
Fifty-five percent of black business owners say racial justice and fairness are important to their business, compared to 30% of non-black business owners. Eighty-seven percent of Black business owners say they are committed to driving social change through their business, and two in five say they are making social changes through their business through volunteerism, operational changes, and financial commitments. have a positive pledge or commitment to a public cause. As a result of these efforts:

• 61% say their sales have increased
• 40% say they are more connected to their community
• 34% say their customer base has increased

Additionally, Black business owners are more optimistic about their business prospects than non-Black business owners. Over the next 12 months:

• 72% expect increased revenue compared to 63% of non-Black business owners.
• 65% plan to expand their business compared to 50% of non-Black business owners.

Hispanic Latino business owners prioritize building intergenerational wealth
With their family’s future in mind, the majority of Hispanic Latino business owners (86%) are committed to building intergenerational wealth through their businesses. Community involvement is also a priority. His 88% of Hispanic Latinx business owners say they actively give back to their communities through actions such as donating products and services, volunteering, and sponsoring local events and teams. .

Additionally, Hispanic-Latino business owners are more optimistic about their business prospects than non-Hispanic-Latino business owners. Over the next 12 months:

• 71% expect increased revenue compared to 65% of non-Hispanic Latino business owners
• 59% plan to expand their business, compared to 52% of non-Hispanic Latinx business owners

AAPI Business Owner Relies on Family to Drive Business
AAPI business owners report strong support systems, with 80% saying their family supports their business. Providing for the next generation is also a top priority, with 82% of AAPI business owners aiming to build intergenerational wealth through their business. Additionally, more than one in three of her AAPI business owners (37%) said they received guidance from family members to start a business.

When asked about their business outlook over the next 12 months, 62% of AAPI business owners said they expected revenue to increase and 60% said they had plans to expand their business (non-AAPI business 52% of owners).

For more insights on domestic small business owners, read the full Bank of America 2022 Women and Minority Business Owners Spotlight.

Bank of America 2022 Women and Minority Business Owners Spotlight
Ipsos Public Affairs conducted the Bank of America 2022 Women and Minority Business Owners Spotlight Survey online. From 26 July to 17 August 2022 Use the small business owner’s pre-recruitment online sample. Ipsos contacted a national sample of 1,308 small business owners. usa Annual sales $100,000 When $4,999,999 Employing 2 to 99 employees, 357 interviews with Hispanic small business owners, 369 interviews with Black small business owners, 150 interviews with Asian American small business owners . Final results for the national and demographic segments are weighted to national benchmark criteria for size, revenue, and region, while final results for the Hispanic segment are weighted by size, revenue, region, and whether respondents are predominantly English-speaking or Spanish-speaking. were weighted based on whether they speak – Busy.

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reporter contact address:
Don VecchiarelloBank of America
Phone: 1.980.387.4899
[email protected]

Source Bank of America Corporation