According to the Arizona Hispanic Chamber of Commerce, minority-owned businesses are unique in that 56 percent are family-owned seeing an average revenue of $110,000 compared to non-minority-owned businesses that generate $500,000 on average per year. The stakes are higher for minority-owned businesses in Arizona because the success of the family is directly tied to the success of the business and there are fewer cash reserves to cushion economic downturns, much less the ongoing impact of a global pandemic.
In recognition of Small Business Week, Cox Business has studied the challenges of minority-owned businesses aiming to catch a glimpse of the issues they face, and more importantly, how they rise above. The results of the 2021 Cox Business Comeback Survey paint a resilient and hopeful picture, particularly for minority business owners under the age of 45.
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Less than half of businesses with owners 45 years and older have returned to pre-pandemic financial levels while more than half of businesses owned by someone younger than 45 have reached or exceeded their pre-pandemic levels. Regardless, nearly 90 percent of surveyed minority business owners are hopeful about growth in the next year and the future of their businesses.
Minority-owned businesses are investing in their future with 83 percent having received funding from the Payroll Protection Program and nearly 75 percent received personal stimulus funding. Of those that received funds, 81 percent put their stimulus money back into their business.
Most minority business owners 18 to 44-years-old are keen on implementing new products and services like eCommerce this year, as well as new technologies into their business processes. Yet, of those owners 45 years and older, less than half are saying yes to new technology.
Nearly half of the respondents promote their businesses as minority-owned and 43 percent believe that being minority-owned has generated more sales in the last year. Fifty-five percent of those under 45 have posted or commented in response to the current social justice movement with 20 percent claiming to be very vocal and 41 percent claiming to post or comment very sparingly. For the most part, those 45 and older were not vocal at all. Resoundingly, 85 percent of those who have posted on the subject have seen a positive response to their business’s voice in the movement.
Minority-owned businesses are looking for support from large enterprises with 55 percent of those surveyed indicating they want improved supplier diversity; 54% would like increased minority-specific grants and 45 percent are looking for more mentorship or advisory programs with business executives.
During Small Business Week, and throughout the year, Cox Business supports small businesses throughout the state by providing them vital telecommunications services while also purchasing their services and supplies to keep our business humming.
Ed Aaronson is Vice President for Cox Business, Arizona. Cox Business provides voice, data, internet and managed cloud services for small and regional businesses nationwide, including health care providers; K−12 and higher education; financial institutions; and federal, state and local government organizations. Cox is committed to creating meaningful moments of human connection through broadband applications and services. The largest private telecom company in America, we proudly serve six million homes and businesses across 18 states.