Study Show that Majority of Black Owned Businesses are Profitible

Written by Minority Biz

Seventy-two percent of black-owned small businesses are profitable, according to findings from the latest Small Business Trends report released by small business financing company Guidant Financial. This is a five percent yearly increase, with last year’s report showing 69 percent of black small businesses as profitable.

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 businesses with data insights. The SBTA teamed up to conduct a joint survey of over 3,100 current and aspiring small business owners across the nation.

“This data includes businesses who are only operating in their first or second full year, so the numbers are likely even better than what is being reported today,” said David Nilssen, CEO of Guidant Financial. “It’s exciting to see that any entrepreneur can achieve success when they execute on their plan effectively.”

More Key Findings:

  • 34% of black business owners are women, much higher than the national average of 27%.
    On average, black small business owners are somewhat happy as business owners and somewhat confident in small business, given the current political landscape.
  • 25% more black small business owners went into business for themselves because they were ready to be their own boss than last year.
  • When asked which political party most closely represents their political views, 54% of black entrepreneurs say Democrat, only 13% say Republican.
  • 18% of black entrepreneurs say the government has hindered their business a lot during the Trump administration.
    The three most important political issues for black small business owners are:
    Healthcare (71% consider it very important)
    Business Taxes (65% consider it very important)
    Interest Rates (63% consider it very important)
  • 70% of black-owned businesses with public storefronts are gun-free zones. Only 44% of average small businesses with public storefronts are gun-free zones.

The Small Business Trends Alliance, an organization comprised of Guidant Financial, LendingClub, FundingCircle, Flippa, Deluxe, and MyCorporation conducted a joint email survey from November 12, 2019 to November 25, 2019 of more than 3,100 current and aspiring small business owners nationwide. Respondent ages ranged from 18 to over 70.

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