It should be. It’s 2023. Small business owners have been significant contributors to the American economy for decades. And yet, while the funding picture has gotten somewhat better, it’s nowhere near where it should be.
The just released Bank of America 2023 Women & Minority Business Owner Spotlight is filled with interesting and thought-provoking statistics. Overall, 46% of the small business owners surveyed intend to expand their businesses in the next 12 months, and 77% plan to obtain funding to help them do so. Their go-to sources of funding:
- 54%—credit cards
- 46%—personal savings
- 35%—personal credit cards
- 24%—traditional bank loans
- 18%—family and friends
While that’s a positive sign, it’s a little worrisome that the first choice for funding is credit cards that typically carry high interest rates.
Also, on another optimistic note, many of the women and minority business owners anticipate increased revenue and a strong year ahead:
- Black entrepreneurs: 86%
- Hispanic-Latino entrepreneurs: 63%
- Women entrepreneurs: 63%
- Asian American/Pacific Islander entrepreneurs: 54%
However, as positive as these business owners feel, the sad reality is many believe they will never in their lifetime have equal access to capital:
- Black entrepreneurs: 35%
- Women entrepreneurs: 31%
- Hispanic-Latino entrepreneurs: 20%
- Asian Americans/Pacific Islander entrepreneurs: 20%
There’s a lot more in the Women & Minority Business Owner Spotlight, mostly positive and inspiring. If you’re seeking funding, check out the SBA Lender Match and the Access to Capital Directory from Bank of America and Seneca Women (it’s not just for women entrepreneurs).
It’s a sign of strength that America’s entrepreneurs are poised to have a robust year of business ahead. As Sharon Miller, President, Small Business, Head of Specialty Banking and Lending at Bank of America, says, “While facing multiple obstacles and challenges over the past year, today’s entrepreneurs continue to persevere and move forward with their growth and expansion plans.”