The company’s latest Small Business Resilience Series research highlights business operations and the desire to build wealth across generations as two key areas of confidence and focus.
KANSAS CITY, Missouri, May 23, 2023 (Globe Newswire) — In honor of Small Business Month, Block Advisors by H&R Block (NYSE: HRB) is pleased to announce that today’s small business owners are younger and more defined. We have published data¹ that reveals that we are more motivated and more diverse. to pursue a business venture. Small business owners also reported strong performance over the past three months despite the uncertain economic environment, with over 80% expressing high confidence in their day-to-day operations. These include billing and receivable tasks, payroll, timely invoicing, and more. All of these are necessary for a successful business, big or small.
“It’s exciting to see new small business owners who are not just thinking about today but are actively looking to ensure future success,” said Jamil, Chief Strategy and Small Business Officer. Mr Khan said. “New breeds of small business owners mean new business models. The good news is that there is a wide range of help available in the form of care and expertise to help them stay resilient.”
Small business ownership is where diversity, youth and different motivations meet
Among Black, Indigenous Peoples, and People of Color (BIPOC) small business owners, 15% are Gen Z and 44% are millennials, compared to 4% of white small business owners are Gen Z and millennials. is only 29%. Despite growing optimism and confidence, the challenge of raising capital remains prevalent for Black, Indigenous and People of Color (BIPOC), women and Gen Z business owners, according to survey participants.
But whether out of curiosity, passion, or out of necessity, a new class of small business owners will be on the hunt for the best ventures for themselves and their families for years to come. proven to be resilient and agile.
Looking at today’s young and diverse small business owners, different major groups have different motivations.
71% of BIPOC respondents are more likely than others (47%) to say their motivation is to pass on intergenerational wealth to their children
99% of Gen Z and 97% of millennials say being their own boss is their top motivation, and women also say it is their top motivation (97%)
96% of Gen Z and 88% of millennials say pursuing their passion is one of their top motivations
94% of women say controlling their own destiny is their top motivation for pursuing a small business
These insights into the specific motivations for starting a business underscore the “do-it-yourself” attitude of new small business owners today, demonstrating their eagerness to break out of traditional work patterns.
Today’s small business owners operate with resilience and confidence, but they continue to face challenges when it comes to funding.
With 40% of those surveyed saying their business revenues have increased in the past three months, economic uncertainty should not be a barrier to success. Looking at BIPOC and his Gen Z owners, this percentage increases to 50% and 60% respectively.
This success is a testament to the confidence of small business owners and their ability to tackle the various tasks required to run a successful business. Across a broad range of specific administrative tasks, at least 82% say they are confident in managing invoices and receivables, paying employees on time, processing invoices, managing business cash flow, and complying with payroll Confirming. tax. That said, tax preparation in general (46%) tops the list of least favorite tasks.
Aside from tax preparation, other issues stem from hurdles beyond their control, such as raising capital and securing loans, with 50% of SME owners finding it difficult to obtain loans from banks. increase. As a result, these young entrepreneurs are looking for other avenues, such as raising money from family and friends, or going outside the network to acquire capital.
The path to starting a small business seems different for BIPOC and female entrepreneurs who need investment
BIPOC small business owners face financial hurdles because they are less likely than white owners to easily raise money from friends and family and more likely to have difficulty obtaining loans from banks. (58% vs. 46% white employers). Female owners have problems on both fronts. Compared to men, women are less likely to seek loans from banks and are significantly less successful in raising money from investors.
“Owners face challenges at various stages of a business, from starting a business to maintaining it effectively,” says Khan. “The good news for them is that resources like those available on Block Advisors can help with bookkeeping, payroll services, and tax preparation. We can offer them with confidence.”
For more information about Block Advisors, please visit https://www.blockadvisors.com/ or visit your local Block Advisors office. Also note that if you apply for a tax extension, you must complete your application by Sunday, October 15th.
1The Small Business Resilience Study was conducted April 27-May 2, 2023 using Qualtrics Field Services with 1,013 U.S. small business owners ages 18 and older.
About the “SME Resilience Series” Survey
Block Advisors was founded with a mission to serve small businesses. That’s why the company asked more than 1,000 of his executives to survey and launched the “Small Business Resilience Series.” This data, published annually by Block Advisors, provides a snapshot of the state of America’s small businesses. With 8,000 offices nationwide, Block Advisors provides year-round support to small business owners with their tax, bookkeeping, payroll, and other professional needs.
About H&R Block
H&R Block, Inc. (NYSE: HRB) provides support and trust to clients and communities around the world through global tax preparation services, financial products and small business solutions. The company blends digital innovation with human expertise and care to help people not only get the best results when paying taxes, but also spend their money better with the mobile banking app Spruce. I support you. Through Block Advisors and Wave, the company helps small business owners grow with year-round bookkeeping, payroll, advisory and payment processing solutions. For more information, visit H&R Block News or follow @HRBlockNews on Twitter.
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