In addition to the pressures of running a business, Black business owners must navigate racism and biases that threaten their success. 

Dealing with racism

More than two out of three Black business owners (69%) say they have experienced racism from a customer—with 48% saying they’ve experienced racism in customer interactions at least once in the past year. 

Higher expectations for Black-owned businesses  

Biased perceptions can affect how consumers evaluate the performance and quality of Black-run enterprises. Three out of four Black business owners (75%) say Black businesses are judged more critically than non-Black businesses. 

Advertising as “Black-owned” and non-Black customers

In the wake of George Floyd’s murder and the COVID-19 pandemic, a wave of awareness called attention to the reality of Black individuals across North America—including Black business owners. The push to identify and support Black businesses outside of Black communities advanced, but nearly a third (31%) of Black business owners who advertise their businesses as “Black-owned” think it is a deterrent for non-Black customers.

Fighting against stereotypes

Inequities in how Black businesses are judged creates added pressure for Black business owners. Nearly three out of four (74%) Black respondents report that they are motivated to succeed by a desire to disprove racial stereotypes. 

The impact of stereotypes on behaviour in business interactions

Black business owners feel the impact of racial disparities in everyday business dealings. Two out of three (68%) Black business owners say they behave differently in customer and vendor interactions to avoid negative racial stereotypes—with only 15% reporting they are unaffected.

Black small businesses can face economic challenges that hinder their startup and success. 

More than half (55%) of Black respondents indicate that they were denied a bank loan at least once when they started their businesses—with more than a quarter (28%) reporting being turned down more than once. 



Business motivations driven by financial need

For Black business owners, the prevailing motivation for starting a business is financial need. One out of three (34%) Black respondents report beginning in business to create additional and more lucrative income streams—the foremost influence for Black business owners. This is a stark contrast to non-Black business owners, for whom wanting to be their own boss was the top motivator (48%) when venturing into business. 

Startup costs for Black-owned businesses

At startup, survey data indicates it costs one out of three (35%) Black business owners $10,000 or more to get their start.

Biggest financial challenges at startup

Overall, Black business owners report that the biggest financial challenges they face when starting out are having to ask friends and family members for money (34%), determining how much money they need (33%), and cashing in their retirement savings to raise money (32%).

While 34% of Black business owners report having to ask a friend or family member for startup money, only 23% of non-Black business owners report having to do the same. 

Coming out of pocket for expenses 

Two out of three (66%) Black business owners say they’ve had to pay expenses or employees with personal funds at least once in the last two years. This suggests that Black-owned businesses are experiencing challenges with cash flow.

Survey data reveals Black business owners have faced significant challenges with profitability in the past year—with a shaky outlook for 2023. 

Overall, only a little less than half (48%) of Black business owners indicate that entrepreneurship has improved their financial security.



A difficult 2022

While more than half (56%) of Black business owners were able to pay themselves from their businesses in 2022, this number jumps to 71% among non-Black business owners. 

Of those who were able to pay themselves in 2022, only half (54%) were able to pay themselves more than the previous year. 

Potential for a profitable future

Coming out of a challenging 2022, nearly half of Black business owners (48%) predict a profitable 2023.

In the face of financial hardships, Black business owners are looking to and investing in their communities to advance the progress of entrepreneurship and the Black community as a whole. 

Nearly half (49%) of Black business owners agree that successful Black businesses are critical for a thriving Black community. 

The importance of networks of resources

Among Black business owners, community resources such as libraries and lectures at local colleges rank as the top (38%) preference when triaging business challenges—with turning to a family member or friend who is also a business owner (36%) and industry-specific organizations (36%) as close seconds. This highlights the significance of Black business owners needing a network of resources to rely on when dealing with difficulties in business.

Volunteering personal time

On a personal level, Black business owners are pillars in their communities. A majority (83%) report having dedicated personal time to volunteering in their local community at least once in the past year—with a quarter (26%) saying they volunteer every month.

Black business owners see their success and lessons learned as part of a legacy to pass on for the prosperity of future generations.

Mentorship can push Black businesses forward

Three in four (75%) Black business owners view mentorship of younger Black business owners as important for the advancement of successful Black businesses as a whole. 

A legacy of success

Similarly, seven out of ten (70%) of Black business owners view their business’s success as important to the success of future generations of Black entrepreneurs.

Easing hardships for the future

A majority (52%) of Black business owners think the next generation will experience less hardships than they have.

Closing the divide

Evidence shows that the Black-white wealth gap could take over 200 years to close. Nearly half (49%) of Black respondents are optimistic that the divide will significantly decrease in the next 100 years. 

Considering the support needed to help Black businesses succeed, Black business owners agree that more mentorship from other Black business owners and more government grants specifically for Black businesses are the most needed resources.   

Intuit QuickBooks Black History Month Survey 2023

Intuit QuickBooks commissioned online surveys, completed in December 2022, of 1,000 (500 Black and 500 non-Black) business owner respondents in Canada (adults aged 18+). There were 432 small business owners out of 500 Black respondents and 456 small business owners out of 500 non-Black respondents. The approximate average annual revenues are $71,200 for Black business owners and $83,750 for non-Black business owners. The average number of employees per business is 36 for Black business owners and 35 for non-Black business owners. Among Black business owners, 35% have 1-10 employees. Among non-Black business owners, 41% have 1-10 employees. Percentages have been rounded to the nearest decimal place so values shown in charts and graphics may not add up to 100%. Responses were collected in online surveys using Pollfish audience pools and partner networks with double opt-ins, random device engagement sampling, and post-stratification based on local census data to ensure accurate targeting and results. Respondents received remuneration.

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