67% of Small Businesses Expect Revenue Gains

Among women- and minority-owned small-business owners, 67% anticipate revenue growth over the next 12 months despite the ongoing impacts of inflation and high operating costs, according to Bank of America’s 2023 Women & Minority Business Owner Spotlight survey.

The survey sought the perspectives of more than 1,000 women, Black, Hispanic/Latino, Asian American and Pacific Islander small business owners, with reports of a positive outlook ahead.

Women owners were among those expecting big growth, as 45% reported planning to expand their business over the next 12 months. In addition, about half (51%) of women business owners said they currently have equal access to capital, up from 48% last year.

Revenue expectations for Hispanics were also positive, as 91% said they expect revenue to increase or stay the same over the next year, according to Bank of America. Meanwhile, 86% of Black entrepreneurs predicted their revenue will increase in the next 12 months, up from 72% last year. Finally, 89% of business owners identifying as Asian American or Pacific Islander believe their revenue will increase or stay the same over the next year.

While businesses are feeling relatively bullish, employees may not be of the same mindset, according to Lisa Margeson, managing director of retirement research and insights for Bank of America. The company’s “2023 Workplace Benefits Report,” a separate study, found only 42% of employees reported feeling financially well, an all-time report low, and an increasing number of employees are prioritizing short-term financial needs over long-term retirement savings, Margeson wrote via email.

“While companies with fewer employees are generally less likely to offer retirement plans, now is a great time for employers to consider adding or enhancing workplace retirement plans,” Margeson wrote. “These plans can help employees easily grow their retirement savings and overall financial health, which in turn can create a healthy and productive workforce.”

Small business plan creation has been a key focus of U.S. policymakers dating back to the original Setting Every Community Up for Retirement Act of 2019, including the creation of pooled employer plans as a way for many small businesses to get the administrative and cost advantages of a larger plan. That focus was heightened last year with the SECURE 2.0 Act of 2022 and with additional states adding both mandated and optional workplace retirement plans.

Margeson noted that employers seem to understand the need to offer benefits. The “2023 Workplace Benefits Report” revealed that 96% of employers feel responsible for employee financial wellness, she wrote.

The outlook is not all rosy for respondents in the recent small business survey. Economic confidence did drop since last fall, with 34% of entrepreneurs reporting they expect the national economy will improve over the next 12 months (down from 44% last year), and 41% reporting they expect their local economy to improve (down from 48%).

Additionally, 31% of women business owners do not think they will ever have equal access to capital to start a business.

Ipsos conducted the Bank of America 2023 Women & Minority Business Owner Spotlight survey online between August 10 and August 27 using a pre-recruited online sample of 1,079 U.S. small business owners.