For the fourth year in a row, Intuit QuickBooks commissioned a study to explore how the use of new technologies and digital tools can help Black-owned small and mid-size businesses combat the ongoing challenges they face, from racial to socioeconomic factors, enabling them to build successful and thriving businesses.  

Gathered through insights from a survey of 2,490 Black and 3,000 non-Black small business owners, the Intuit QuickBooks Black History Month Survey uncovers a promising trend: Black entrepreneurs are not only leading the way as early adopters of new technologies and digital tools, but also view these innovations as pivotal in leveling the playing field for Black-owned small businesses. The findings also reveal how technology can help drive improved financial health and long-term success for Black-owned businesses, ultimately leading to decreasing the wealth gap of the Black community, as data shows the median wealth of Black households stands significantly lower than that of non-Black households. 

Black small businesses are adopting technology faster

Findings from the report illustrate how Black-owned small businesses are leading the way when it comes to early adoption of digital tools, with 28% of Black entrepreneurs reporting early adoption of new technologies compared to 20% of their non-Black peers. This early adoption is proving to be a key differentiator when it comes to financial success for Black entrepreneurship. Black-owned small businesses that adopt digital tools later or not at all are nearly two times more likely to face closure or operate in survival mode —a state where businesses solely focus on staying afloat, rather than planning for growth.

While a greater number (33%) of Black-owned small businesses are struggling to stay afloat compared to their non-Black counterparts (21%), a vast majority of the community believes that technology can play a pivotal role in helping them turn things around. In fact, 84% feel it’s a major contributor to their success. Social media, mobile point-of-sale (POS) systems, CRM software, and AI-powered solutions ranked as the top digital tools that are helping Black-owned businesses drive this success. These tools are helping Black entrepreneurs not just keep pace, but maintain their businesses by streamlining operations and expanding their reach. 

Social media, in particular, has become an essential tool for success, with 70% of Black entrepreneurs crediting it as a key driver for their business. It’s being used to promote products (64%), build brand awareness (51%), and engage customers (50%). 

Jilea and Jamie Hemmings, owners of Nourish+Bloom Market, the first Black-owned autonomous grocery store, have experienced the direct impact social media can have in building a successful business. “We recently opened a new store in Atlanta, GA, and an organic social post was shared by someone in our community that picked up a lot of traction, likes, and shares. From that post alone, we’ve seen an uptick in traffic of people coming in because they saw their friends share it on their social media feeds, and wanted to experience our store and its unique technology firsthand,” said Jilea Hemmings. “It’s a great example of how technology like social media, coupled with the support of our community, can make such a difference on the success of our business.” 

Black-owned businesses are also embracing AI at higher rates: 79% have integrated AI tools into their operations compared to just 62% of non-Black business owners. AI is proving to be an invaluable resource across a variety of business functions, including generating ideas and inspiration (47%), enhancing customer support (34%), and boosting marketing efforts (31%). 

Financial hurdles persist, but notable progress is being made

While these strides in technology adoption and its potential to provide pathways to success are promising, the findings reveal that many Black small business owners and entrepreneurs continue to face remarkable struggles when it comes to maintaining the financial health of their businesses. 

These struggles are evident when looking at the use of personal funds and credit cards to cover business expenses. According to the survey findings, 80% of Black business owners have used personal funds to cover expenses in the last year. Although trending down from 85% in last year’s QuickBooks survey, they are using these funds on average nine times per year—higher than the seven times reported by non-Black respondents. Similarly, more Black business owners (65%) continue to rely on credit cards to cover unexpected expenses compared to their non-Black counterparts (47%). 

The survey findings also revealed continuing differences in the rate of bank loan denials, as Black entrepreneurs were twice as likely to be denied a bank loan (30%) than their non-Black peers (15%) when starting their business. This highlights a persistent and widening gap in access to critical startup capital, as the difference has increased from 2023 survey data, which showed Black business owners were 1.5 times more likely to be denied a loan than non-Black business owners. Overall, fewer Black business owners (45%) reported applying for startup bank loans in the last year, compared to 76% in the same 2023 survey, mirroring a growing industry trend of businesses moving away from bank loans, and traditional banks and lenders decreasing their supply of term loans. 

While many of these ongoing financial challenges persist, there are a few emerging trends that provide an optimistic outlook. The survey also found that Black business owners who are early adopters of tech are 20% less likely to use personal funds to cover business expenses, compared to those who are late or refraining adopters. These are small, but significant, strides which show why Black entrepreneurs have confidence in tech and digital tools, as 78% believe adoption of digital tech helps better prepare them for future financial challenges, and nearly all (93%) of Black small businesses surveyed believe technology is helping to close the wealth gap of the Black community.

“Technology is the foundation of what drives our business, from the autonomous services we offer our customers in our grocery stores, to the digital tools we use to run our operations behind the scenes,” said Jamie Hemmings. “These digital tools we use enable us to create efficiencies, cutting time so we can accomplish our goals and generate growth. This is especially true when it comes to managing our business finances. Using AI-powered tools, we can streamline tasks like forecasting so we can stay on top of our cash flow and make informed financial decisions for our business.”

Another key insight uncovered for Black entrepreneurs is a trend in data revealing that the financial barrier to entry for starting a business is steadily decreasing. Black survey respondents report that it cost them $9,800 on average to start their business—a sharp decrease from an average of $21,000 in 2023. Not only has this figure decreased, but it has also dipped below the startup costs shared by their non-Black peers, who report spending an average of $12,900 to get their businesses off the ground. 

Technology is paving the way forward

Black-owned businesses have long been at the forefront of progress, finding creative ways to overcome barriers while building wealth and opportunity for their communities. As the data show, Black entrepreneurs are not only navigating these challenges, but leading the way in innovation, especially in adopting digital tools that drive resilience and growth. This is likely to be a trend that continues, as 82% of Black small businesses agree that technology is creating a more level playing field for Black entrepreneurs.

By embracing early adoption and leveraging new technologies and innovations, Black entrepreneurs can continue to drive success and achieve small business prosperity. 

Sample and Methodology

In December 2024, Intuit QuickBooks commissioned an online survey completed in January 2025. The survey gathered insights from 2,490 Black and 3,000 non-Black small business owners and decision-makers aged 18 and over. It focused on businesses with 0-100 employees. Among Black respondents, 21% owned businesses with 10-100 employees, 26% owned businesses with 1-9 employees, and 28% owned non-employer businesses. One in four respondents were Black small business decision-makers (25%). In the non-Black sample, 16% owned businesses with 10-100 employees, 27% owned businesses with 1-9 employees, and 28% owned non-employer businesses. One in 4 non-Black respondents were decision-makers for small businesses (27%). Half of Black respondents identified as male (51%) and 49% identified as female. Percentages have been rounded to the nearest decimal place, so values shown in data report charts and graphics may not add up to 100%. Responses were collected using Pollfish audience pools and partner networks with double opt-ins and random device engagement sampling to ensure accurate targeting and results. Respondents received remuneration.