News: 3 in 5 Minority-Owned Businesses Returned/Exceeded Their Pre-Pandemic Financial LevelsSandeep Babu
When the coronavirus pandemic hit, most small businesses got affected. Now, things are improving and more and more business owners are expecting good growth.
According to the latest Cox Small Business Snapshot report, 60% of minority small business owners say that they have returned or exceeded their pre-pandemic levels. What’s more, 90% of respondents are hopeful about business growth in the next year.
Being a small business owner yourself, you always want to keep tabs on how other businesses are doing in tough times to get inspired. And the positive findings of the Cox survey can give you the motivation to do better in your business.
Cox Small Business Snapshot 2021
The pandemic tested the resilience of the business owners. Disrupted supply chain, diminishing demand, and reduced cash flow were just a few of the many business challenges that most SMBs faced.
In fact, more than 75% of businesses have accepted that the pandemic intensified business challenges, as the survey reports. But it didn’t break the small business spirit.
Business owners adapted to the new normal and invested in tools and resources to not only survive but also thrive.
Cox Small Business Snapshot 2021 report found that 58% of the respondents implemented new tech tools to grow just because of the pandemic.
Here are other ways how small business owners are planning to grow:
- 50% of businesses are offering new products/services
- 27% of businesses are updating their locations
And it goes without saying that adding more locations can increase sales. So, there is no surprise that 24% of respondents are adding more locations to grow their businesses.
All of these measures are becoming fruitful, that’s the reason why 3 in 5 businesses achieved or exceeded their pre-pandemic growth levels. And most small businesses are hopeful for the next year
Perley McBride, executive vice president of Cox Business, said in a prepared statement,
It’s been a tough year on companies worldwide, but particularly among minority-owned businesses. While we’ve seen movements take root in shopping small, buying local, and supporting minority-owned companies, it’s heartening to hear many businesses are recovering and are optimistic about their financial futures.
Challenges Minority-owned Businesses Face
The path to success for minority businesses is not easy. In addition to the pandemic, these businesses also face unique challenges that can hinder their growth.
According to the survey, 65% of respondents find the following issues unique to minority-owned businesses:
- Growing customer base
- Accessing funding/capital
- Planning and structuring business
One effective way to address these challenges is networking. When you join a good network of business owners, you can access the advice of peers to tackle any challenge.
Technology has made it easy to do networking. Clubhouse, one of the most recent social platforms, offers many opportunities to minority business owners to foster network building and share knowledge through panels created for minority businesses.
Joining local chambers can also help.
Small business growth expert, Ramon Ray, said,
From finding the right product idea to networking, technology has eased barriers. Now small business owners can easily reach out to the brightest minds in their industry to find help whenever they feel stuck. If personal networking is not possible, small biz owners should not shy away from virtual networking opportunities.
You can join Smart Hustle Nation where you can connect with like-minded business owners and share useful tips and tricks for business growth.
Large enterprises can also support minority businesses by increasing minority-specific grants/funding opportunities and offering mentorship/advisory programs.
About the Survey
Cox commissioned the survey, which included 742 minority business owners. The objective of the survey was to understand the challenges of minority-owned businesses. Click here to know more about the survey.