Finances FYI Presented by JPMorgan Chase
By Aaron Allen, The Portland Medium
Black-owned small businesses are entering 2025 with a strong sense of optimism, driven by increased access to funding, growing consumer support, strategic expansion efforts, and confidence in economic conditions, according to the JPMorgan Chase 2025 Business Leaders Outlook Survey. The survey found that more than 70% of small business owners feel optimistic about both their industry’s and company’s performance, with Black business owners expressing the highest levels of confidence across several key economic indicators, including the local, national, and global economy.
“I engage with small businesses regularly and see their optimism firsthand—the survey results only reinforce this positive outlook for 2025,” said Shelia Winston, Chase Vice President and Certified Senior Business Consultant. “It’s inspiring to witness their resilience and determination to overcome challenges, whether it’s through innovative funding strategies or ambitious hiring plans. These business leaders are not just surviving; they’re setting the stage for a year of growth and success.”
Economic Optimism Grows Each Year
The survey found that more than 60% of Black small business owners are optimistic about local, national, and global economic conditions, while nearly 80% feel positive about their industry and company performance. This marks a steady increase in confidence among Black entrepreneurs over the past few years, with many citing strategic planning and stronger access to resources as key drivers of their success.
“I would say Black businesses are really on the rise, and they have a positive outlook,” Winston said. “The reason why is because so many of them have really tuned in to the resources that are available to them and are really focusing on their business and who their target audience is compared to a year ago.
“Their confidence level has really jumped up to 55%, and then also 55% of them are actually leaders,” she added.
Some Concerns Still Exist
While Black business owners are increasingly confident, some remain cautious about economic conditions. 29% of Black-owned businesses still anticipate a recession in 2025, compared to a smaller percentage of the broader small business community.
“This cautious optimism reflects a nuanced perspective, balancing resilience with a watchful eye on potential economic shifts,” Winston said. “While business owners remain hopeful, they are also taking steps to protect themselves from possible downturns.”
Inflation Is the Top Concern, but Cybersecurity Challenges Are Growing
Inflation remains the biggest challenge for small business owners heading into 2025, according to the survey. However, Black business owners are also prioritizing cybersecurity, ranking it as their second-most pressing concern, even ahead of economic uncertainty.
This focus on protecting digital assets, customer information, and financial transactions highlights a growing awareness of cybersecurity risks. The survey also found that across all business owners, rising taxes ranked as the third most pressing issue.
Finding Funding
The survey also found that Black business owners are increasingly exploring multiple funding options to support their growth. Compared to the overall small business community, Black-owned businesses are more likely to utilize lines of credit (48%), online loans from fintech or alternative lenders (39%), personal credit cards (39%), angel investments/venture capital (25%), and crowdfunding (19%).
A significant 73% of Black-owned businesses plan to seek online lending opportunities this year, compared to 55% of all business owners surveyed. This trend suggests a proactive approach to securing capital and an increasing willingness to explore alternative funding sources beyond traditional bank loans.
Ambitious Hiring Plans Amid Talent Challenges
Hiring remains a major priority for Black-owned businesses in 2025, with 71% planning to add full-time employees and 55% expecting to hire part-time workers, according to JPMorgan Chase. This marks a significant contrast to the broader small business community, where only 46% anticipate increasing full-time staff and 38% plan to hire part-time employees.
Despite these ambitious hiring goals, 90% of Black business owners expressed concerns about finding qualified candidates, with employee turnover and retiring employees (34%) being the most significant workforce-related challenges.
“This response is echoed across the board, with 79% of all respondents worried about finding suitable candidates,” Winston said.
Winston also emphasized that hiring the right employees is crucial for business expansion and sustainability. However, businesses must be prepared to offer competitive wages, benefits, and career development opportunities to attract and retain talent in an increasingly competitive labor market.
Strategic Planning and Financial Preparedness
Despite challenges such as concerns about a potential recession and workforce shortages, Black-owned businesses continue to expand their operations, secure funding, and implement strategies for sustainable growth. Winston stresses the importance of having a solid business plan, financial contingencies, and reserve funds to navigate economic fluctuations.
“Always having a good business plan is very, very crucial. Putting together a business plan and updating it is very, very important because there are a lot of unforeseen things and circumstances that happen,” says Winston. “Making sure that you have contingencies within the plan. If something was to happen as far as inflation or increased wages, do you have enough money in your reserves to be able to handle that?
“So, you always want to make sure you have enough money in reserves—you want to have at least three to six months of savings set aside for things that are out of your control in your market and environment.”
