According to Goldman Sachs’ recent 10,000 Small Businesses Voices survey, Black small-business owners have a more positive outlook for the current year compared to others in their field.
Despite facing increased operating expenses and greater difficulties obtaining financing, some of the Black small-business owners surveyed in late January reported feeling more confident in their ability to overcome challenges and have a better perception of growth opportunities compared to prior years.
As per the survey results, 81% of Black small-business owners are optimistic about their business’ financial future this year, compared to 68% of all surveyed companies.
A profitable future imagined
According to the survey, 78% of Black business owners anticipate an increase in profits, while 60% of all surveyed businesses hold this view. 67% of Black business owners expect to create new jobs, compared to 51% overall. Additionally, 67% of Black business owners are currently hiring either full-time or part-time employees, versus 59% among all surveyed businesses.
Personal savings are starting to take a hit
The survey found that 45% of Black small-business owners had to use their personal savings in the past three months to sustain their business, whereas only 33% of all small businesses surveyed faced this situation.
These numbers have increased from January 2022, when 38% of Black small-business owners and 23% of all small-business owners used their personal savings to keep their business running. In addition, 37% of Black small-business owners reported difficulty in obtaining new capital and financing, compared to 23% among all small businesses. When Goldman Sachs surveyed this cohort in January 2022, 32% of Black business owners felt uncertain about their ability to obtain capital, compared to 19% among all surveyed businesses.
About the survey
The survey was conducted by Babson College and David Binder Research from January 23 to 26, 2023, and was based on the responses of 1,838 participants who participated in the 10,000 Small Businesses survey, including 325 Black small-business owners. The survey included small business owners from 48 states in the United States.
