The 2025 Intuit QuickBooks Black History Month Survey paints a nuanced portrait of Black small businesses in the US, revealing a story of innovation amid ongoing challenges. As highlighted in the 2025 Intuit QuickBooks Small Business Index Annual Report, technology and access to capital are the driving forces behind small business success. While a boost in financing can accelerate growth, the report shows that expanding tech adoption takes businesses to the next level, unlocking productivity gains, major revenue boosts, and greater confidence in future growth. This underscores the critical role of technology and financing in achieving small business prosperity—a reality that's especially crucial for Black small businesses.

This year’s Black History Month Survey shows that these businesses are leading the charge in technology adoption, strategically leveraging AI and social media to drive success, championing digitization for both current and future wins, and heralding tech as an equalizer. However, despite their tech savviness and innovation, these businesses continue to face a tougher funding landscape and higher barriers to profitability.

Jump ahead:

• Black small businesses are leading in early tech adoption
• Tech-forward and future-focused 
• AI super users
• Tech as a driver of economic empowerment
• Funding challenges and financial barriers 
• Lower startup costs, higher hurdles
• Bridging the gap: tech needs and community ties

Black small businesses are leading in early tech adoption

Black-owned small businesses aren't just keeping up with technology—they're leading the charge. These businesses are significantly more likely to be early adopters of new digital solutions than their non-Black counterparts, with 28% self-identifying as early adopters compared to 20% of their peers.

This forward-thinking approach is also reflected in their investment in digital tools: they invested an estimated average of $12.8K in the past year and plan to invest $12.9K in the coming year, surpassing the planned investments of non-Black-owned businesses ($10K) and the overall average ($11.3K).

Black small businesses’ tech prowess is further underscored by their confidence. Seven in 10 (77%) say they have the right technology to compete with both small and larger companies.

Tech-forward and future-focused 

Black-owned small businesses are at the forefront of leveraging technology to drive their success. Eight in 10 (84%) of these entrepreneurs credit technology as a fundamental factor in their business achievements, surpassing the 74% of their non-Black counterparts who share this sentiment. Social media emerges as a critical driver for these businesses, with 70% of Black-owned small businesses identifying it as the most effective digital tool. Expanding beyond social media, these entrepreneurs are also pioneering the use of advanced technologies like social media (70%), mobile payment systems (44%), CRM software (37%), and AI-powered solutions (37%), reporting these have been top contributors to their success in the past year.

As they look to the future, Black small businesses place a strong emphasis on the continued adoption of new technologies. Eight in 10 (85%) believe that adopting new technologies will be crucial for future success.

AI super users

In a dynamic technology landscape, Black enterprises are proactively adopting AI to give their business a boost. While adoption has seen a slight dip since last year (84%), Black small businesses’ strategic use of AI reaffirms their position as leaders in tech. Nearly 8 in 10 (79%) Black small business owners have woven AI into the fabric of their operations. This level of integration puts them ahead of their non-Black peers, where only 62% report similar adoption. 

The benefits of AI for these trailblazers are significant. From powering self-learning and idea generation (47%) to crafting marketing campaigns (31%) and automating administrative tasks (24%), AI is reshaping how these businesses operate. This technology isn't just an operational upgrade; it's a game-changer that’s enhancing operational efficiency (88%), marketing and branding (86%), decision-making and strategic planning (83%), and product/service development (83%).

Continuing to be proactive, Black small businesses are taking a hands-on approach to mastering AI, with 79% opting for self-teaching. This DIY approach to upskilling stands in contrast to more traditional avenues like networking (42%) or mentorship (23%). When asked about the resources that could help them gain a deeper understanding of AI and its practical applications in business, a preference for self-learning emerges again. Six in 10 (62%) indicate that online courses and tutorials would be helpful resources—ahead of training sessions and networking.

Tech as a driver of economic empowerment

Technology is redefining avenues of opportunity and growth for Black small businesses—and by extension, the Black community at large. Eight in 10 (82%) Black small businesses agree that technology is leveling the playing field, allowing them to keep pace with their peers. This response highlights the critical role that accessible technology plays in fostering entrepreneurship within the Black community. Building on this perspective, 76% of Black small businesses report that technology has enabled them to launch new ventures with greater ease, reinforcing a shift that could open doors to previously inaccessible opportunities.

However, the impact of technology extends beyond individual businesses. Black entrepreneurs recognize the broader benefits, advancing the entire community. In December 2021, the median wealth of a Black US household stood at $27K — far below $320.9K of an Asian household and $250.4K of a white household. A majority (93%) of Black small businesses see technology as a crucial tool in closing this wealth gap by making it easier to start and grow a business.

Funding challenges and financial barriers 

While Black small businesses are embracing technology and innovation, they continue to face significant financial hurdles. Black-owned small businesses are more likely to face the threat of closure or survival mode compared to their non-Black counterparts (33% vs. 21%).

However, technology adoption emerges as a key differentiator; Black small businesses slow to adopt digital tools are nearly twice as likely to face these challenges than early or on-time adopters.

Securing initial bank loans remains a tough battle. From 2023 to 2025, Black small businesses reporting they applied for a bank loan for startup capital decreased from 76% to 45%, echoing a larger trend of businesses moving away from bank loans and traditional banks decreasing their supply of term loans. Despite a decrease, the rate of loan denials for Black businesses stands at 30%, double that of their non-Black counterparts (15%). This highlights a persistent and widening gap in access to critical startup capital, increasing 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.

To bridge financial gaps, 80% of Black small business owners have turned to their personal funds over the past year (down from 85% last year)—more frequently than their non-Black counterparts (59%). On average, Black entrepreneurs rely on personal funding approximately nine times per year—higher than the estimated seven times a year for their non-Black peers. However, the early or timely adoption of digital tools offers some relief, as the annual average drops to eight for these tech-savvy businesses and jumps up to ten for late adopters or those who don’t adopt.

Seeking immediate solutions, 65% of Black-owned small businesses have used credit cards as a financial lifeline during emergencies over the last year—substantially higher than the 47% of non-Black small businesses. While this approach provides immediate relief, the potential for accruing debt poses a risk to long-term financial health and business stability.

While financial hurdles persist, Black small businesses still signal that technology can be a crucial buffer when weathering financial troubles. Looking ahead, 1 in 2 (57%) Black small businesses are prioritizing growth over the next year—more than their non-Black peers (48%). Their plan for growth is clear: bring in more money (82%), attract new customers (74%), and expand product and service lines (50%). A critical part of achieving this vision and maintaining financial stability is the continued adoption of technology. Seven in 10 (78%) Black small businesses agree that embracing digital technology better equips small businesses to face future financial challenges.

Lower startup costs, higher hurdles

The landscape of starting a Black-owned small business is evolving, marked by shifts in both financial investment and the challenges faced along the way. From 2023’s findings to this year’s, Black small businesses report a decrease in the average cost to launch their ventures, falling from an estimated average of $21K to $9.8K. This reduction not only represents a relief in financial burden but is also noteworthy as it now stands below the startup costs faced by their non-Black peers, who spend an average of $12.9K. This reversal from the trend noted in 2023 suggests a positive shift toward more accessible entrepreneurship for the Black community.

However, the journey to profitability is not without its challenges. On average, Black small businesses report taking 17 months to reach profitability, which is two months longer than their non-Black counterparts (15 months). While initial costs might be lower for Black small businesses, the pathway to financial stability is longer, underscoring the need for continued support and resources tailored to these businesses.

Amid these financial narratives, Black entrepreneurs continue to contend with societal challenges that extend beyond the balance sheets. One in 2 (59%) Black small businesses report experiencing racism from customers, a decrease from the 79% reported in 2023, but still significant. Additionally, this past year alone, 37% faced racially charged incidents. These encounters not only disrupt daily business operations but also reflect deeper societal issues that persistently challenge the inclusivity of the business environment. Further emphasizing this, 38% of these businesses have felt compelled to turn away customers due to discriminatory remarks, a decrease from last year.

Bridging the gap: tech needs and community ties

Clear consensus emerges on the need for more targeted government support, particularly around technology adoption. One in 2 (51%) Black small business owners feel they lacked sufficient government assistance in the early stages of integrating new technologies—an area crucial for growth. Looking ahead, 72% are advocating for grants or funding to facilitate technology adoption, signaling a strong desire to harness digital tools for sharper businesses.

Despite external resources falling below expectations, internal community and collaboration remain robust. Three in 4 (75%) Black small businesses have actively supported other small enterprises within the past year, a rate higher than their non-Black counterparts at 58%. This collaborative effort is proving fruitful, as it has resulted in increased referrals and new customers (50%), valuable knowledge sharing (48%), and even greater access to technology (31%).

Community ties are also evident in purchasing behaviors, with 91% of Black small businesses supporting other Black-owned businesses in the past year—proving that community can be a powerful engine for success. But their pride goes far beyond mutual support: business growth (52%), happy customers (51%), and tech advancements (30%) are all major wins they're celebrating from the past year, signaling achievements in innovation are valued in their success.

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.

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