New data released today as part of a collaboration between Operation HOPE, America’s largest nonprofit financial inclusion organization, and SurveyMonkey sheds light on what it's like to be a Black small business owner or aspiring entrepreneur today.
As part of this effort, Operation HOPE and SurveyMonkey developed the HOPE Minority Small Business Index. This index is intended to help quantify the experiences and hopefulness of Black small business owners and aspiring entrepreneurs. Each question touches on a different aspect of their experience, from hope for reaching their business goals, to mentorship, to their tolerance for risk, to their access to capital, and finally, future paths for success for Black small business owners.
This inaugural survey consisted of 1,167 Black small business owners and aspiring entrepreneurs who are participating in HOPE’s signature One Million Black Business and Entrepreneur Initiative (1MBB) and its other entrepreneurial training programs throughout the U.S. This first survey HOPE Index score is 67 out of a possible 100, to be tracked over time.
Key findings include:
- Most Black aspiring entrepreneurs and small business owners find the odds stacked against them in building their businesses: 79% say minority entrepreneurs are much less likely to succeed in building a business compared with whites.
- Despite what they perceive as long odds, nearly as many (69%) are counting on their small business as their primary source of income, and to compound the existing hurdles, 58% lack access to capital today.
- The pandemic adds yet another strain: 77% say COVID-19 will have permanent effects on the way they run or start their business.
A few glimmers of HOPE exist:
- Virtually all (98%) Black small business owners and aspiring entrepreneurs are hopeful they will succeed in reaching their business goals.
- Fully 86% expect their revenue to increase in the next 12 months; over twice the shares of small business owners nationwide.
- Almost three-quarters (74%) expect tech innovation to have a positive effect on their business; again, over two times the shares of small business owners nationwide.
Read more about our polling methodology here.
Click through all the results in the interactive toplines below:
Which best describes you?
Gender Answer Total Female Male Unweighted N 1,167 866 296 I am an aspiring entrepreneur 32%33%29%I am a new small business owner (less than 1 year) 26%26%25%I am a recent small business owner (1 - 5 years) 31%30%33%I am an experienced small business owner (more than 5 years) 12%11%13%No answer 0%0%0%Question wording: Which best describes you?Survey dates: –Is your current business, or will your future business, be your primary source of income?
Gender Answer Total Female Male Unweighted N 1,167 866 296 Yes 69%69%70%No 31%31%29%No answer 0%0%0%Question wording: Is your current business, or will your future business, be your primary source of income?Survey dates: –What is most needed to help you start, reinvent, and/or grow your small business?
Gender Answer Total Female Male Unweighted N 1,167 866 296 Access to capital 46%43%52%Marketing and communication assistance 18%19%17%Free financial and small business education 13%14%10%Digital strategies including e-commerce, web-design, digital payment, etc. 13%14%12%Other (please specify) 7%7%6%Community support 3%3%2%No answer 0%0%0%Question wording: What is most needed to help you start, reinvent, and/or grow your small business?Survey dates: –Which of the following opportunities have you been given or experienced during your journey to become a small-business owner? (Select all that apply)
Gender Answer Total Female Male Unweighted N 1,167 866 296 Small-business development training 54%58%42%Financial education or financial counseling 31%32%30%Access to a successful small business owners 30%28%36%Access to a business internship and/or apprenticeship 9%8%13%Other (please specify) 7%6%7%None of the above 23%23%25%Question wording: Which of the following opportunities have you been given or experienced during your journey to become a small-business owner? (Select all that apply)Survey dates: –Does anyone help you manage your money? (Select all that apply)
Gender Answer Total Female Male Unweighted N 1,167 866 296 Do it myself 78%78%78%Financial advisor 11%9%15%I’m not actively managing my financial future 10%11%6%Use a free online service or app 8%9%7%Pay an online service or app for financial management 5%5%6%Other (please specify) 4%4%5%Question wording: Does anyone help you manage your money? (Select all that apply)Survey dates: –How much do you trust information from financial institutions when it comes to making decisions?
Gender Answer Total Female Male Unweighted N 1,167 866 296 A lot 14%12%17%Some 69%71%64%Not too much 15%15%17%Not at all 2%2%2%No answer 0%0%0%Question wording: How much do you trust information from financial institutions when it comes to making decisions?Survey dates: –How likely is it that the coronavirus outbreak will have permanent effects on the way you run or start your business?
Gender Answer Total Female Male Unweighted N 1,167 866 296 Very Likely 41%41%43%Somewhat Likely 35%35%35%Not so likely 17%18%16%Not likely at all 6%6%6%No answer 0%0%0%Question wording: How likely is it that the coronavirus outbreak will have permanent effects on the way you run or start your business?Survey dates: –Do you think the new administration and President Biden will be good for a small business, bad for small business, or have no impact on small business?
Gender Answer Total Female Male Unweighted N 1,167 866 296 Good 69%70%66%Bad 5%5%8%No Impact 24%23%26%No answer 2%2%0%Question wording: Do you think the new administration and President Biden will be good for a small business, bad for small business, or have no impact on small business?Survey dates: –Compared to white entrepreneurs, how likely are minority entrepreneurs to succeed when building a small business? Minority entrepreneurs are...
Gender Answer Total Female Male Unweighted N 1,167 866 296 Much more likely to succeed than whites 5%6%4%Much less likely to succeed than whites 79%80%78%Same for both whites and minorities 14%13%18%No answer 1%1%0%Question wording: Compared to white entrepreneurs, how likely are minority entrepreneurs to succeed when building a small business? Minority entrepreneurs are...Survey dates: –There is not enough social, financial and governmental support for minority small business development in this country.
Gender Answer Total Female Male Unweighted N 1,167 866 296 Total agree 90%91%89%Total disagree 9%8%11%Strongly agree 62%61%67%Somewhat agree 29%31%22%Somewhat disagree 7%6%8%Strongly disagree 2%2%4%No answer 1%0%0%Question wording: There is not enough social, financial and governmental support for minority small business development in this country.Survey dates: –I see other minority small business owners succeeding in my community.
Gender Answer Total Female Male Unweighted N 1,167 866 296 Total agree 70%72%65%Total disagree 30%28%35%Strongly agree 19%20%18%Somewhat agree 51%52%48%Somewhat disagree 21%20%23%Strongly disagree 9%8%12%No answer 0%0%0%Question wording: I see other minority small business owners succeeding in my community.Survey dates: –If black businesses succeed, we will have a more equitable society.
Gender Answer Total Female Male Unweighted N 1,167 866 296 Total agree 95%95%96%Total disagree 4%4%4%Strongly agree 75%73%82%Somewhat agree 20%22%14%Somewhat disagree 3%3%3%Strongly disagree 1%1%1%No answer 1%1%0%Question wording: If black businesses succeed, we will have a more equitable society.Survey dates: –Overall, would you describe current conditions for your business as good, middling or bad?
Gender Answer Total Female Male Unweighted N 798 583 211 Good 21%18%29%Middling 58%60%54%Bad 20%21%17%No answer 1%1%0%Question wording: Overall, would you describe current conditions for your business as good, middling or bad?Survey dates: –In the next 12 months, do you expect your business’s revenue to increase, stay the same, or decrease?
Gender Answer Total Female Male Unweighted N 798 583 211 Increase 86%85%89%Stay the same 9%10%7%Decrease 4%4%4%No answer 1%1%0%Question wording: In the next 12 months, do you expect your business’s revenue to increase, stay the same, or decrease?Survey dates: –In the next 12 months, do you expect your business’s staff of full-time employees to increase, stay the same, or decrease?
Gender Answer Total Female Male Unweighted N 798 583 211 Increase 52%52%53%Stay the same 43%43%43%Decrease 4%4%4%No answer 1%1%0%Question wording: In the next 12 months, do you expect your business’s staff of full-time employees to increase, stay the same, or decrease?Survey dates: –In the next 12 months, do you expect changes in government regulations to have a negative effect, no effect, or a positive effect on your business?
Gender Answer Total Female Male Unweighted N 798 583 211 Negative effect 9%8%10%No effect 47%45%54%Positive effect 43%46%35%No answer 2%1%0%Question wording: In the next 12 months, do you expect changes in government regulations to have a negative effect, no effect, or a positive effect on your business?Survey dates: –In the next 12 months, do you expect changes in tax policy to have a negative effect, no effect, or a positive effect on your business?
Gender Answer Total Female Male Unweighted N 798 583 211 Negative Effect 20%18%27%No Effect 45%43%48%Positive Effect 33%37%25%No answer 2%2%0%Question wording: In the next 12 months, do you expect changes in tax policy to have a negative effect, no effect, or a positive effect on your business?Survey dates: –In the next 12 months, do you expect changes in trade policy to have a negative effect, no effect, or a positive effect on your business?
Gender Answer Total Female Male Unweighted N 798 583 211 Negative effect 12%12%11%No effect 63%62%67%Positive effect 24%24%22%No answer 1%2%0%Question wording: In the next 12 months, do you expect changes in trade policy to have a negative effect, no effect, or a positive effect on your business?Survey dates: –In the next 12 months, do you expect changes in technological innovation to have a negative effect, no effect, or a positive effect on your business?
Gender Answer Total Female Male Unweighted N 798 583 211 Negative effect 4%4%3%No effect 22%23%18%Positive effect 74%72%78%No answer 1%1%0%Question wording: In the next 12 months, do you expect changes in technological innovation to have a negative effect, no effect, or a positive effect on your business?Survey dates: –In the next 12 months, do you expect changes in immigration policy to have a negative effect, no effect, or a positive effect on your business?
Gender Answer Total Female Male Unweighted N 798 583 211 Negative effect 6%6%6%No effect 74%74%74%Positive effect 18%18%19%No answer 2%2%1%Question wording: In the next 12 months, do you expect changes in immigration policy to have a negative effect, no effect, or a positive effect on your business?Survey dates: –Under the current restrictions related to controlling the coronavirus outbreak, how long can your business continue operating?
Gender Answer Total Female Male Unweighted N 1,167 866 296 Less than a week 1%1%1%Less than a month 2%2%1%A few months or less 7%7%6%Less than a year 11%10%14%More than year 47%46%49%No answer 32%33%29%Question wording: Under the current restrictions related to controlling the coronavirus outbreak, how long can your business continue operating?Survey dates: –How hopeful are you that you will succeed in your business goals?
Gender Answer Total Female Male Unweighted N 1,167 866 296 Total hopeful 98%97%99%Total not hopeful 2%2%1%Very hopeful 79%77%83%Somewhat hopeful 19%20%16%Not too hopeful 2%2%1%Not hopeful at all 0%1%0%No answer 0%0%0%Question wording: How hopeful are you that you will succeed in your business goals?Survey dates: –How much do you agree or disagree with the following statement: I have someone trustworthy I can turn to for help making business decisions.
Gender Answer Total Female Male Unweighted N 1,167 866 296 Total agree 69%66%75%Total disagree 31%33%25%Strongly agree 33%31%38%Somewhat agree 36%36%37%Somewhat disagree 16%17%15%Strongly disagree 14%16%10%No answer 1%0%0%Question wording: How much do you agree or disagree with the following statement: I have someone trustworthy I can turn to for help making business decisions.Survey dates: –How comfortable are you taking risks when it comes to advancing your small business?
Gender Answer Total Female Male Unweighted N 1,167 866 296 Total comfortable 85%83%91%Total uncomfortable 15%17%8%Very comfortable 37%33%48%Somewhat comfortable 48%50%42%Not too comfortable 13%14%8%Not comfortable at all 2%2%0%No answer 1%0%1%Question wording: How comfortable are you taking risks when it comes to advancing your small business?Survey dates: –How much access to financial institutions do you have today?
Gender Answer Total Female Male Unweighted N 1,167 866 296 Total access 42%41%46%Total lack access 57%58%54%A lot 7%7%8%Some 35%34%37%Not too much 37%38%33%Not at all 21%20%22%No answer 0%0%0%Question wording: How much access to financial institutions do you have today?Survey dates: –Looking ahead 1 year, how likely is it that minority small business owners will have an easier path to success?
Gender Answer Total Female Male Unweighted N 1,167 866 296 Total likely 79%82%72%Total unlikely 21%18%28%Very likely 17%18%15%Somewhat likely 62%63%57%Not too likely 18%16%26%Not likely at all 2%2%2%No answer 1%0%0%Question wording: Looking ahead 1 year, how likely is it that minority small business owners will have an easier path to success?Survey dates: –