Even with ongoing economic challenges and uncertainty, small business owners are optimistic about the future and are forecasting a strong year ahead, according to a new report from Bank of America, 2022 Women & Minority Business Owner Spotlight. The report explored the outlook of more than 1,300 small business owners across the country to examine their challenges and overall business and economic outlook with a particular focus on women and minority small business owners.
The report found that 66 percent of business owners expect revenue to increase to a seven-year high, and 52 percent of business owners are planning to expand their business, up from 37 percent in the spring. While inflation and commodities prices are at the top of business owners’ minds, 77 percent said their business is equipped to survive a recession.
But despite the positive outlook, women and minority business owners continue to report greater challenges accessing capital for their businesses than the national average. More than a quarter of women business owners surveyed said they do not think they will ever have equal access to capital, while 40 percent of Black business owners, 27 percent of Hispanic-Latino business owners, and 22 percent of AAPI business owners said the same. As a community, we must do better to ensure everyone has equal access to building wealth.
The report also found that despite challenges Hispanic-Latino business owners face, they are motivated and flexible, with a majority eager to build upon their self-taught knowledge to improve their financial know-how. The report found that 45 percent of Hispanic-Latino business owners said they are self-taught when learning to be a business owner, and 83 percent of business owners said they wished they were more knowledgeable about small business financing.
Similarly, 56 percent of Black business owners said they are self-taught, and nearly half have experienced challenges accessing capital. The report found 87 percent of Black business owners said they are committed to driving social change through their business, and their results have led to increased sales and an increased customer base.
Once again, small business owners continue to inspire us all with their resilience and determination. Bank of America is committed to helping provide all small business owners, no matter their race or gender, with the resources necessary to manage, sustain, and grow their businesses.
