Black History Month: State of Black Business 2023

Black History Month

February is Black History Month. Every year, FSMSDC celebrates and supports Black History Month by sharing stories and resources for Black business owners. This week, we will share the State of Black Business as reported by several sources.

State of Black Business 2023

2022 was the first full year that most businesses were able to operate with a semblance of normalcy. Many business owners have pivoted, adapted and modernized their companies to thrive in the changing economic climate. Black business owners are no exception – according to Guidant Financial and the Lending Club, 70% of Black small business owners say they are either “somewhat happy” or “very happy” with their businesses and reporting their business are “currently profitable.” In fact, a separate survey by JPMorgan Chase reports 79% of them are anticipating increased performance despite the forecasted recession.

One of the main challenges that continues to remain however is funding. In 2022, venture capital for Black entrepreneurs plummeted 45%. Access to capital also disproportionately affected Black women, the fastest growing group of entrepreneurs. Self-funding in the form of cash as the primary source of capital for Black-owned businesses limits the ability to scale and perform sustainably.

Black businesses are stronger than ever before, despite historical challenges continuing to affect growth. To combat these challenges, we encourage firms within the network to communicate their needs with FSMSDC and explore our programs and services to thrive in 2023.