How can this moment create sustained momentum for equity in entrepreneurship?

Although Black and Hispanic/Latino entrepreneurs see sustained strong growth, they are receiving fewer long-term business opportunities.

In 2021, Ernst & Young LLP (EY US) surveyed 1,000 Black and Hispanic/Latino entrepreneurs to understand how they were impacted by the pandemic and the social justice movement. Results showed that while Black and Hispanic/Latino entrepreneurs experienced an increase in attention and strong business performance, many of those surveyed were concerned that this wave of support would be fleeting.

Fast-forward to 2022, and the world has shifted yet again. The pandemic has shifted to an endemic phase, and business leaders are grappling with inflation, economic pressures and geopolitical uncertainties. Amid this landscape, EY US conducted a pulse survey of 250 Black and Hispanic/Latino entrepreneurs to understand any progress or challenges over the past year. Findings show that despite ongoing systemic barriers and other external challenges, Black and Hispanic/Latino entrepreneurs continue to experience revenue growth, but they have noticed a marked decline in offers of business collaboration.

The majority of Black and Hispanic/Latino entrepreneurs (62%) continue to see positive revenue growth compared to 73% in 2021. About 97% of entrepreneurs are receiving at least the same amount of attention as they did one year ago, and more than two-thirds (68%) say they are receiving more attention in 2022 than 2021.

However, Hispanic/Latino entrepreneurs are more likely to be significantly concerned this year that the likelihood of attention will provide only a short-term boost.

More than 2 of every 5 (43%) entrepreneurs surveyed see supply chain shortages and delays as a top threat, followed by business competition (39%) and access to capital (38%). Just one in four (27%) say attracting and retaining talent is a top threat, despite the historically tight labor market.

Nearly all respondents (98%) say their business has been positively impacted by large corporations acknowledging recognition days or months, like Black History Month or Hispanic Heritage Month. This attention has led to increased media visibility, a larger social media presence or a boost in revenue.

There was a 16-point decline this year in Black and Hispanic/Latino entrepreneurs receiving offers of business collaboration (50% in 2021 and 34% in 2022) and a nine-point decline in receiving donations or grants to support their businesses (47% in 2021 and 38% in 2022).

Black entrepreneurs were especially impacted, with a 39-point drop year over year. Among those surveyed, 58% received donations or grants in 2021 and only 19% reported the same in 2022.