For years, Black-owned businesses have faced systemic barriers—limited access to funding, higher loan denial rates, and reliance on personal savings to keep operations running. Despite these challenges, a new QuickBooks Black History Month Survey highlights a promising shift: Black entrepreneurs are leading the charge in technology adoption, using digital tools to streamline operations, boost sales, and secure long-term financial stability.

Technology is no longer just an operational convenience—it’s a critical survival tool. Those who embrace it early are seeing fewer financial struggles, stronger cash flow, and increased opportunities to scale.

Black Entrepreneurs Are Early Tech Adopters

The survey revealed that 28 percent of Black business owners consider themselves early adopters of new technology—compared to just 20 percent of non-Black entrepreneurs. This forward-thinking approach is already paying off.

Black-owned businesses that delay tech adoption are nearly twice as likely to face closure or operate in “survival mode” rather than planning for growth.

Top digital tools driving success include:

• Social media marketing – 70 percent of Black entrepreneurs say it’s a key driver for customer engagement.
• AI-powered business tools – 79 percent of Black-owned businesses use AI for marketing, customer support, and business forecasting—significantly more than their non-Black counterparts.
• Mobile point-of-sale (POS) systems & CRM software – Helping businesses track sales and improve customer relationships.

Technology isn’t just keeping Black-owned businesses afloat—it’s giving them a competitive edge.

Funding Challenges Persist, But Tech is Helping

Despite these advancements, access to capital remains a major hurdle:

• 80 percent of Black entrepreneurs used personal funds for business expenses in the past year.
• 30 percent were denied a bank loan—twice the rate of non-Black business owners.
• 65 percent rely on credit cards to cover unexpected costs.

However, there’s a silver lining: Black entrepreneurs who adopt technology early are 20 percent less likely to rely on personal funds for business expenses. This signals a major shift—one where tech adoption is directly linked to financial resilience.

A Lower Barrier to Entry for Black-Owned Startups

Another surprising takeaway? The cost of starting a Black-owned business has dropped significantly.

• In 2023, the average startup cost for Black entrepreneurs was $21,000. Today, it’s just $9,800.
• This is even lower than the $12,900 average reported by non-Black business owners.

Lower startup costs mean more aspiring Black entrepreneurs can launch businesses with fewer financial barriers—and with the right tech tools, they can sustain and scale them faster than ever before.

As Black-owned businesses continue to lead the way in digital transformation, their impact extends beyond individual success. A staggering 93 percent of Black entrepreneurs believe that technology is actively closing the wealth gap, giving them the tools and insights

What This Means for the Future:

• 82 percent of Black small business owners agree that technology is creating a more level playing field.
• AI-powered financial tools are helping business owners manage cash flow, forecasting, and budgeting more efficiently.
• Social media and digital marketing are opening doors to global audiences, increased sales, and brand awareness.

The Future is Digital

For Black entrepreneurs, technology isn’t just an advantage—it’s a necessity. Early adoption is proving to be a game-changer in reducing financial strain, improving business stability, and driving long-term success.

Read the full survey insights and discover how Black entrepreneurs are using digital tools to transform their businesses.