Small Business Trends Report Released by Guidant Financial Finds Number of Profitable Black-Owned Small Businesses Rises 5% Year Over Year

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Findings based on the annual Small Business Trends survey conducted by the Small Business Trends Alliance (SBTA) notes seventy-two percent of black-owned small businesses are profitable, representing a five percent yearly increase, with last year’s report showing 69 percent of black small businesses as profitable.

Guidant Financial 2020 Black Owned Small Business

“It’s exciting to see that any entrepreneur can achieve success when they execute on their plan effectively," said David Nilssen, CEO of Guidant Financial.

Seventy-two percent of black-owned small businesses are profitable, according to findings from the latest Small Business Trends report released by small business financing company Guidant Financial. This is a five percent yearly increase, with last year’s report showing 69 percent of black small businesses as profitable.

The report’s findings are based on the annual Small Business Trends survey conducted by the Small Business Trends Alliance (SBTA), a group of companies dedicated to supporting small businesses with data insights. The SBTA teamed up to conduct a joint survey of over 3,100 current and aspiring small business owners across the nation.

“This data includes businesses who are only operating in their first or second full year, so the numbers are likely even better than what is being reported today,” said David Nilssen, CEO of Guidant Financial. “It’s exciting to see that any entrepreneur can achieve success when they execute on their plan effectively.”

More Key Findings:

  • 34% of black business owners are women, much higher than the national average of 27%.
  • On average, black small business owners are somewhat happy as business owners and somewhat confident in small business, given the current political landscape.
  • 25% more black small business owners went into business for themselves because they were ready to be their own boss than last year.
  • When asked which political party most closely represents their political views, 54% of black entrepreneurs say Democrat, only 13% say Republican.
  • 18% of black entrepreneurs say the government has hindered their business a lot during the Trump administration.
  • The three most important political issues for black small business owners are:
  • Healthcare (71% consider it very important)
  • Business Taxes (65% consider it very important)
  • Interest Rates (63% consider it very important)
  • 70% of black-owned businesses with public storefronts are gun-free zones. Only 44% of average small businesses with public storefronts are gun-free zones.

Accompanying infographic and report can be found at https://www.guidantfinancial.com/small-business-trends/african-americans-in-business/.

Methodology
The Small Business Trends Alliance, an organization comprised of Guidant Financial, LendingClub, FundingCircle, Flippa, Deluxe, and MyCorporation conducted a joint email survey from November 12, 2019 to November 25, 2019 of more than 3,100 current and aspiring small business owners nationwide. Respondent ages ranged from 18 to over 70.

About Guidant Financial
Headquartered in Bellevue, WA Guidant Financial helps business owners secure financing to start, buy, or grow a business. An industry leader in business and franchise financing, Guidant works with new and existing entrepreneurs to identify, evaluate, and deploy customized financing solutions. Their services include, but are not limited to, 401(k) business funding, SBA loans, unsecured credit, and portfolio loans. In total, Guidant has helped over 20,000 entrepreneurs in all 50 states to invest more than $4 billion in funds to start small businesses, resulting in more than 85,000 U.S. jobs created. Visit Guidant at guidantfinancial.com.

About the Small Business Trends Alliance (SBTA)
Founded in 2019, the Small Business Trends Alliance (SBTA) is a group dedicated to supporting small businesses with data trends and insights. These data-backed insights are intended to help small business owners confidently make key decisions, and to bring transparency to small business for prospective entrepreneurs to learn more about their options. The SBTA includes Guidant Financial, LendingClub, FundingCircle, Flippa, Deluxe, and MyCorporation.

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Stacia Kirby
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