When it comes to key metrics like revenue growth and industry performance, Black small business owners are more confident than their peers about how they will execute overall in 2023
Yet the top business challenges for Black entrepreneurs include headwinds like inflation, supply chain disruptions, and economic uncertainty. And despite ongoing concerns of a potential recession this year, fewer Black owners (55%) expect that to happen nationally, versus (61%) for all small business owners. Those are among findings from the JPMorgan Chase’s 2023 annual Business Leaders Outlook survey.
The new research examined the pulse of small and midsize business leaders, including gaining expectations for their companies and their views on such issues as recession predictions, inflation challenges, and hiring plans for this year.
Some 79% of Black owners are optimistic about their own performance this year, versus 72% nationally. Likewise, 75% have a favorable view about their industry’s performance, compared to 63%. Black owners are among minority leaders also more optimistic about the local economy relative to small businesses overall.
Further, 72% of Black owners expect revenue and sales growth this year, versus 69%. And some 69% of Black owners expect their profits to rise in 2023, higher than the 65% for all small businesses.
On the job front, Black entrepreneurs (55%) anticipate hiring full-time employees over the next 12 months, in contrast to 51% for all small businesses. Some 50% of Black owners plan to boost wages, and 38% plan to offer up-skilling and training opportunities, versus 42% and 29% respectively across America.
The online survey for the small business report was done by Chase Insights last year from November 14 through November 22. It includes data from more than 1,000 business leaders in various industries across the country, including Black business owners who were questioned.
The survey findings that show the bullish outlook among Black entrepreneurs are surprising, as those firms were among the hardest hit in recent years by the COVID-19 pandemic and other economic setbacks. This story reveals some of the difficulty. Yet, Black owners’ optimism may have been fueled by support they gained in recent years after the murder of George Floyd and subsequent national racial justice movements.
Ben Walter, CEO, Chase Business Banking, stated, “Following the challenges of the last few years, it’s encouraging to see the resilience of small business owners and leaders. The next economic cycle is always right around the corner, so our role is to help small business owners plan ahead so they can succeed in good times and bad.”
To help Black businesses grow, JPMorgan Chase provided the following tips entrepreneurs may want to consider in their 2023 planning:
- Stay In-Tune with Economic Trends: “While business leaders are undoubtedly familiar with today’s top economic headlines, they will want to keep a close eye on whether current trends related to the Federal Reserve, consumer spending, inflation, labor markets and more continue, abate or reverse in the year ahead.” Check out more here.
- Recession-Proof Your Business: “Regardless of when or if a recession ultimately materializes, businesses can take steps today to remain flexible, bolster their balance sheet and even find opportunities amid volatility.” Gain more details
- Optimize Working Capital: “Working capital is a key indicator of businesses’ financial health, and maintaining it is even more crucial in times of economic volatility. To manage working capital more effectively, businesses may want to consider utilizing supply chain finance and dynamic discount solutions, implementing more efficient inventory management, and reworking current debt to reduce liabilities” Check this out for more.