Community support has paved the way to success for many minority-owned small business owners
Minority-owned small businesses expect more challenges than white-owned small businesses this year, including decreased revenue, retaining and paying employees, and expanding their online presence. These are just a few of the key findings from the “Small Business Resilience Series Study,” a survey of 1,100 Block Advisors customers conducted by Block Advisors, a part of H&R Block (NYSE: HRB). Block Advisors specializes in providing tax, bookkeeping and payroll help to small businesses. The biannual study, which started in 2021, tracks small business owners’ sentiment and aftermath of the pandemic, while illustrating their trials, recovery, and resilience.
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“With spiking inflation rates and a pandemic that’s still affecting all small businesses, it’s more important than ever to support the success of minority-business owners who continue to be affected at a disproportionate rate,” said Jamil Khan, chief strategy and small business officer at H&R Block. “That’s why we provide all small business owners tax, bookkeeping, and payroll help. Our goal is to make sure they have tools to navigate current events impacting their short-term and long-term success.”
Supporting wealth-builders in every community
According to the study:
- More than half (58%) of minority-owned business owners have learned new skills to help their business thrive despite current challenges.
- About twice as many minority-owned businesses have relied on online small business owner communities for support this past year – Block Advisors’ newly launched Small Business Network Facebook group is an example of one such community.
- Minority-owned businesses were 13% more likely to report a negative impact from the pandemic than white-owned businesses.
- More than half (57%) of minority business owners saw their revenue drop since the pandemic started, compared to 41% of white business owners. This represents an increase from the 2021 survey findings, where 50% of minority-owned business owners reported a revenue decrease.
- A quarter of minority-owned businesses strongly agree they feel more appreciated by their community post-pandemic and half believed their customers were even more committed to supporting small business than before.
“Small businesses and entrepreneurs have been wealth-builders and job creators for generations,” Khan said. “By supporting minority-owned companies, we can help create more opportunities for meaningful savings, property ownership, credit building, and generational wealth for diverse communities. When we support minority-owned businesses we also strengthen the communities they thrive in.”
Minority small business owners perceived a need for improved access to small business resources, as compared to the opportunities of their white counterparts:
- Minority small business owners are looking for one-to-one business advice (57% to 38%) and access to loans or capital (50% to 30%).
- Minority owners are also looking for a better understanding of their businesses’ financials (65% to 46%).
To continue to address this resource gap, H&R Block continues to partner with the Urban League to connect Black-owned small business owners to free, personalized coaching from Block Advisors tax pros. The program is designed to help small business owners manage their finances, navigate tax compliance, and increase their likelihood of success when trying to gain access to capital.
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Shining a spotlight on small business owners
Small business owners are rising to the occasion. As part of the Small Business Resiliency Series Study, H&R Block is celebrating small business owners and Block Advisors’ customers who have persevered through the pandemic.
This includes New York City-based Angela McCrae, founder and CEO of Uncorked & Cultured. Angela’s Harlem-based community-driven platform and media company connects Black, Indigenous and People of Color (BIPOC) audiences worldwide through wine, wellness, culture and adventure. Her business advocates for Black consumers by strategically connecting them with brands that share the same ideals.
Angela and her team create original content amplifying BIPOC entrepreneurs, host global cultural adventures, and provide marketing solutions for companies looking to tap into the growing BIPOC luxury and lifestyle consumer population.
Uncorked & Cultured is the proud publisher of the Sip Consciously Directory, an assemblage of Black-owned wine businesses in the three-tier wine distribution chain, and produces the State of Black Wine Business Forum, the LatinX State of the Wine Industry Summit, and the annual Juneteenth Napa Experience.
Angela has been a Block Advisors and H&R Block customer for almost a decade. The trust she has built with her certified small business tax pro, Mike, has kept her loyal to the brand.
“I always feel like Mike is an advocate and has my best interests when making knowledgeable tax decisions for my business,” Angela said. “We really formed a bond over the years, so I keep coming back.”