Even as minority business owners face new economic challenges, including supply chain disruptions and inflation, the results of the recent PNC Economic Outlook survey show impressive resilience and a positive mindset among these business leaders, according to Marshalyn Odneal, national sales executive for Minority Business at PNC Bank.
According to the PNC survey, more than two-thirds (68%) of minority business owners feel highly optimistic about their own company’s prospects in the next six months, compared to only 60% of non-minority businesses.
While business owners in general remain cautious about the national economy, the difference between the optimism of minority business owners regarding their own company versus the broader U.S. economy is 40 percentage points, significantly higher than the 31-point difference among non-minority owners.
“I have no doubt that minority business owners who managed to navigate during the pandemic had to make unprecedented decisions related to staffing, business models, and pricing. In doing so, they faced a Goliath – and won. It’s not surprising that their mindset about the future of their businesses, despite current economic challenges, is optimistic,” said Odneal.
According to the PNC survey, 65% of Black and Hispanic business owners reported having a business plan that aligns with the current direction of the economy, significantly more than non-minority businesses (55%). This highlights the importance of access to crucial resources for these owners. The survey reinforces this point, showing that 86% of Black and Hispanic businesses interacted with or utilized resources from the Small Business Association (SBA), a local chamber of commerce, or a community economic development organization. Only 69% of non-minority business owners reported doing the same.
“The truth is that the unique financial challenges minority businesses have long faced have been amplified during the pandemic. As a result, more minority business owners are now seeking Minority Business Enterprise (MBE) certification, which is also an important and necessary resource,” said Odneal.
Businesses that become certified MBEs gain exclusive access to premium networking events, affordable consulting services, and technology programs, among other benefits, according to the National Minority Supplier Development Council.
“Our survey revealed that 87% of Black-owned businesses are now MBE certified, up from 69% last year. Three-quarters of Hispanic-owned businesses are MBE certified, compared to 67% last year. Of the certified MBEs, 80% of Black-owned and 84% of Hispanic-owned businesses said that certification has been a useful business development tool,” said Odneal.
PNC has taken significant steps to do more for minority businesses and provide the necessary resources to help them overcome obstacles.
As part of its Small Business organization, the mission of PNC’s Minority Business Development Group is to provide solutions and resources that promote financial well-being for small businesses in diverse communities. They have managed to do this, in part, through the PNC-Certified Minority Business Advocate initiative, a volunteer advocacy program that helps PNC employees understand the challenges faced by minority business owners.
“If the optimism of these entrepreneurs materializes and the U.S. business landscape thrives further ahead, minority business supporters must continue to execute their mission and accelerate their efforts. The outlook is promising, but we must continue to do our part to advocate for these entrepreneurs and help their communities thrive,” said Odneal.
Source: StatePoint