February 3rd 2024.
Black small businesses are currently facing numerous challenges as they strive to grow their enterprises. According to the annual Business Leaders Outlook survey conducted by JPMorgan Chase, the top concerns for these entrepreneurs heading into 2024 are inflation, revenue growth, and rising taxes. The survey included data from leaders in various industries such as professional services, retail, technology, and healthcare, with a particular focus on minority entrepreneurs and their business prospects.
One of the key findings for Black small businesses was their resilience in the face of inflation. Despite the rising costs of goods and services, these business owners are more likely to take action, such as offering new products and expanding their businesses, in order to combat the effects of inflation. Additionally, minority respondents are more inclined to seek financing in the next 12 months than their peers, highlighting their determination to overcome financial obstacles.
Another interesting finding was that minority entrepreneurs are planning to use artificial intelligence (AI) at a higher rate than other business owners. This suggests that they are forward-thinking and willing to embrace new technologies to enhance their businesses.
However, the survey also revealed that minority-owned small businesses place less priority on hiring the right people for their companies compared to other entrepreneurs. This could be due to the fact that Black businesses are often understaffed, leaving owners with little time to work on growing their businesses.
Mikal Quarles, head of community business strategies at JPMorgan Chase, provided insights on the challenges facing Black businesses and offered strategies and resources to help them grow and overcome obstacles. When asked about the challenges of inflation, revenue growth, and rising taxes for Black businesses, Quarles explained that inflation is a major concern, as it can significantly impact the cost of doing business. He advised business owners to regularly review their expenses and pricing to ensure they are competitive in the market.
Quarles also emphasized the importance of revenue growth and staying ahead of the competition, especially in a rapidly changing market where AI is becoming increasingly prevalent. He acknowledged that Black businesses may be understaffed, but encouraged them to seek out resources and mentorship programs to help them stay informed and make strategic decisions for their businesses.
When asked about the potential headwinds Black businesses may face this year, such as raising capital and increasing customer base, Quarles highlighted the multitude of resources available for business owners to tap into. He mentioned Chase's mentorship program for entrepreneurs, which has already mentored over 5,000 minority business owners, and a Special Purpose Credit Program that helps businesses gain access to capital.
Finally, Quarles acknowledged the optimism and determination of Black business owners, despite the challenges they may face. He attributed this to their resilience and potential for success, rather than generational wealth or privilege. He shared examples of businesses that have utilized resources and support from Chase to achieve significant growth and success.
In conclusion, while Black small businesses may face some challenges, they also have the potential to thrive and succeed with the right support and resources. As Quarles emphasized, it is important for these businesses to stay informed, seek mentorship and resources, and continue to push forward with determination and resilience.
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