Key Highlights
- A significant 74% of business owners reported that supply chain challenges are currently affecting their operations. Consequently, 49% are increasing prices, 29% are struggling to source products and supplies, 28% are experiencing delays in the delivery of goods and services, and 25% are opting for locally based suppliers.
- Half of the women business owners surveyed believe their economic confidence would improve with greater political stability, while 48% would feel more optimistic with lower interest rates, and 46% would benefit from reduced inflation.
- While three in five women entrepreneurs feel they have equal access to capital, about 25% still encounter obstacles when trying to secure funding for their businesses.
- The insights were gathered through an online survey conducted by Ipsos, which included responses from over 2,000 small and mid-sized business owners throughout the United States.
Women and minority business owners across the United States are preparing for significant growth in the coming year, according to a new report from Bank of America. The study revealed that nearly 80% of small and mid-sized business owners anticipate an increase in revenue over the next 12 months, with many setting their sights on expanding their businesses.
The survey, which gathered responses from over 2,000 small and mid-sized business owners, found that confidence in future revenue growth was strong across various demographics. Women entrepreneurs, along with Hispanic-Latino, Black/African American, and Asian American and Pacific Islander (AAPI) business owners, are particularly optimistic about their prospects, despite ongoing concerns about inflation and labour shortages.
The report highlighted that more than half of the women business owners surveyed are planning to grow their operations in the coming year. Many are focusing on attracting more customers, establishing a stronger online presence, and using professional services to support their expansion. However, balancing these ambitions with personal responsibilities remains a challenge for many women entrepreneurs, with 54% saying they’ve prioritised improving their work-life balance over the past year.
Labour shortages are another issue that small business owners continue to grapple with. Finding skilled workers has been a persistent challenge, and many entrepreneurs are raising wages in an effort to attract top talent. While small businesses may feel this pressure more acutely, the optimism for revenue growth remains steady.
Sharon Miller, a senior executive at Bank of America, noted that while smaller businesses are finding it harder to recruit staff, many are still willing to invest in employee development and technology to enhance both their hiring processes and client experiences.
Among minority-owned businesses, the outlook is equally positive. Hispanic-Latino entrepreneurs expressed strong confidence in the national economy, with the majority expecting economic conditions to improve over the next year. Many are also planning to hire more staff and seek additional funding to support their expansion plans.
Black/African American business owners also shared an optimistic outlook, with many planning to expand their businesses and secure funding in the next year. A significant number of these entrepreneurs are focusing on strengthening customer relationships through personalised interactions and tailored marketing strategies. Social media is playing an increasingly important role in their efforts to engage with customers and offer special deals to build loyalty.
For AAPI business owners, technology is proving to be a critical tool in their growth strategy. The study found that a large proportion of AAPI entrepreneurs have turned to artificial intelligence to help streamline their staffing efforts, with many planning to expand their workforce and increase their use of technology in the coming year.
Bank of America’s latest survey shows that while challenges such as inflation and labour shortages remain, women and minority business owners across the country are optimistic about their future.