New report spotlights women and minority
business owners, including challenges and overall business and
economic outlook
CHARLOTTE, N.C., Oct. 5, 2022
/PRNewswire/ -- Despite headwinds from supply chains, inflation and
labor shortages, small business owners are forecasting a strong
year ahead, according to the 2022 Women & Minority Business
Owner Spotlight, a new report from Bank of America exploring the
outlook of entrepreneurs nationwide. The report is based on a
survey of more than 1,300 small business owners across the country,
with additional insights into gender and ethnicity, and found that
revenue expectations rose to a seven-year high, and expansion plans
increased significantly since the spring. Over the next 12
months:
- 66% of business owners expect revenue to increase—a seven-year
high
- 52% plan to expand their business—up from 37% this spring
- 83% plan to obtain funding for their business—up from 70% this
spring
As the possibility of a recession looms, 77% of entrepreneurs
say their business is equipped to survive a recession.
"As we look ahead to 2023, small business owners are
optimistic about the future, even with ongoing economic challenges
and uncertainty," said Sharon
Miller, President, Small Business, Head of Specialty Banking
and Lending at Bank of America. "The data underscores what we've
seen time and time again: the continued resilience of small
business owners whose success remains foundational to our local and
national economies."
Inflation and commodities prices are top
concerns
When asked about their primary concerns,
small business owners identified inflation (75%) and commodities
prices (69%), followed by a potential recession (67%), the U.S.
political environment (66%) and interest rates (65%). A strong
majority (88%) say inflation and supply chain issues (80%) are
continuing to impact their operations, leading to price increases.
Hiring plans are up significantly with wages on the rise to
attract talent
Amid labor shortages, business owners
reported that their hiring plans are reaching the highest levels in
seven years, with 38% planning to hire in the next 12 months. The
majority (61%) of business owners say labor shortages are currently
impacting their business, up from 41% in the spring. Among those
business owners impacted:
- 49% are working more hours
- 31% are raising wages to attract competitive talent
- 30% are having difficulty filling job openings
The report also includes specific insights on the perspectives
of women, Black, Hispanic-Latino and Asian American and Pacific
Islander (AAPI) business owners, examining key areas including
access to capital, business outlook, social change and
community.
Women, minority entrepreneurs face barriers accessing
capital
More than a quarter (29%) of women business
owners surveyed said they do not think they will ever have equal
access to capital, while 40% of Black business owners, 27% of
Hispanic-Latino business owners and 22% of AAPI business owners
said the same.
Minority business owners reported more challenges accessing
capital for their businesses than the national average, with 46% of
Black and Hispanic-Latino business owners and 55% of AAPI business
owners reporting they've personally faced challenges. Black
business owners were most likely to say they are concerned about
credit availability—57% of Black business owners surveyed expressed
concern vs. 45% overall.
Women business owners project growth but are less optimistic
than men
Women business owners have an overall
positive business outlook, while confidence in their business and
the broader economic landscape is more tempered than their male
peers. Over the next 12 months:
- 63% expect revenue to increase vs. 68% of male business
owners
- 47% plan to expand their business vs. 57% of male business
owners
- 38% are confident that the national economy will improve vs.
50% of male business owners
Overall, women business owners say they face more challenges in
business than their male counterparts, with the majority (59%)
saying they have to work harder for the same success as men.
Black business owners advocate for social change through
their businesses
Fifty-five percent of Black business
owners say racial justice and equity are important causes for 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 have active pledges or commitments toward social causes
through their business, including volunteering, making operational
changes and monetary commitments. As a result of these efforts:
- 61% say they have increased sales
- 40% say they deepened ties to their community
- 34% say they have increased their customer base
In addition, Black business owners are more optimistic than
their non-Black counterparts about their business outlook. Over the
next 12 months:
- 72% expect revenue to increase vs. 63% of non-Black business
owners
- 65% plan to expand their business vs. 50% of non-Black business
owners
Hispanic-Latino business owners prioritize building
generational wealth
Keeping the future of their
families in mind, a strong majority (86%) of Hispanic-Latino
business owners are committed to building generational wealth
through their business—compared to 77% of non-Hispanic-Latino
business owners. Community involvement is a priority, too: 88% of
Hispanic-Latino business owners say they actively give back to
their communities, taking actions such as donating
products/services, volunteering and sponsoring local events and
teams.
Additionally, Hispanic-Latino business owners are more
optimistic than their non-Hispanic-Latino peers about their
business outlook. Over the next 12 months:
- 71% expect revenue to increase vs. 65% of non-Hispanic-Latino
business owners
- 59% plan to expand their business vs. 52% of
non-Hispanic-Latino business owners
AAPI business owners rely on family to drive
business
AAPI business owners report strong support
systems, as 80% say their family supports their business. Providing
for the next generation is also top of mind, with 82% of AAPI
business owners aiming to build generational wealth through their
business. Additionally, more than one in three (37%) AAPI business
owners said they received guidance on starting their business from
family members.
When asked about their business outlook for the coming 12
months, 62% of AAPI business owners said they expect their revenues
to increase, while 60% said they plan to expand their business (vs.
52% of non-AAPI business owners).
For an in-depth look at the insights of the nation's small
business owners, please read the full Bank of America 2022 Women
& Minority Business Owner Spotlight.
Bank of America 2022 Women & Minority Business Owner
Spotlight
Ipsos Public Affairs conducted the Bank of
America 2022 Women & Minority Business Owner Spotlight survey
online between July 26 and August 17,
2022 using a pre-recruited online sample of small business
owners. Ipsos contacted a national sample of 1,308 small business
owners in the United States with
annual revenue between $100,000 and
$4,999,999 and employing between two
and 99 employees, as well as 357 interviews of Hispanic small
business owners, 369 interviews of Black small business owners and
150 interviews of Asian American small business owners. The final
results for the national and demographic segments were weighted to
national benchmark standards for size, revenue and region, while
the final results for the Hispanic segment were weighted for size,
revenue, region, and whether the respondents were primarily
English-speaking or Spanish-speaking.
Bank of America
Bank of America is one of the world's
leading financial institutions, serving individual consumers, small
and middle-market businesses and large corporations with a full
range of banking, investing, asset management and other financial
and risk management products and services. The company provides
unmatched convenience in the United
States, serving approximately 67 million consumer and small
business clients with approximately 4,000 retail financial centers,
approximately 16,000 ATMs and award-winning digital
banking with approximately 55 million verified digital users. Bank
of America is a global leader in wealth management, corporate and
investment banking and trading across a broad range of asset
classes, serving corporations, governments, institutions and
individuals around the world. Bank of America offers
industry-leading support to approximately 3 million small business
households through a suite of innovative, easy-to-use online
products and services. The company serves clients through
operations across the United
States, its territories and approximately 35 countries. Bank
of America Corporation stock (NYSE: BAC) is listed on the
New York Stock Exchange.
For more Bank of America news, including dividend announcements
and other important information, visit the Bank of
America newsroom and register for news email
alerts.
Reporters May
Contact:
Don
Vecchiarello, Bank of America
Phone: 1.980.387.4899
don.vecchiarello@bofa.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/bank-of-america-finds-66-of-small-business-owners-expect-revenue-increases-over-the-next-year-52-plan-to-expand-their-businesses-301641442.html
SOURCE Bank of America Corporation