NEW ORLEANS - Despite persistent challenges in accessing capital, Black entrepreneurs are leveraging technology at higher rates to drive business success, overcome financial barriers, and close the wealth gap. This is the key finding of the Intuit QuickBooks fourth consecutive study on how new technologies and digital tools help Black-owned small and mid-size businesses navigate challenges and achieve success.
“The survey explores how the use of new technologies and digital tools can help Black-owned small and mid-size businesses combat the ongoing challenges they face, from racial to socioeconomic factors, enabling them to build successful and thriving businesses,” said Intuit QuickBooks.
Amanda Lee Harvey, owner of Petal Salon in New Orleans, is an early adopter of digital tools. “Adopting technology earlier has helped me navigate my business, really seeing what sticks and what works,” said Harvey.
According to the survey, technology is seen as a major advantage by Black-owned entrepreneurs, with 82% of Black small business owners believing it levels the playing field and 93% stating it helps close the wealth gap. Additionally, 84% credit technology as a key contributor to their success.
Petal Salon, a premier, full-service salon in the Lower Garden District, uses technology to improve client experiences. Harvey says she has a passion for providing luxurious and rejuvenating experiences for her clients. “As a salon owner, you get to see clients come in one way and then leave with this glow,” she said. “The key factor when I'm finding a new digital tool is really just client and staff usage. As long as it's easy for both to use, I'm good with it.”
Gathered through insights from 2,490 Black and 3,000 non-Black small business owners, the Intuit QuickBooks Survey found that Black entrepreneurs adopt new technologies early at a higher rate (28%) than non-Black business owners (20%).
Social media, mobile POS systems, CRM software, and AI-powered solutions, for example, are helping Black entrepreneurs drive business success. Social media is a key tool, with 70% of Black entrepreneurs using it to promote products (64%), build brand awareness (51%), and engage customers (50%).
“Social media has been vital for my salon,” said Harvey. “It's essentially like a magazine. People love seeing your work. People love seeing the space. It's just very important. Social media has definitely expanded my customer database. It’s a free advertisement when every dollar counts.”
AI adoption is significantly higher among Black-owned businesses at 79% compared to non-Black peers (62%). According to the survey, AI aids in generating ideas (47%), enhancing customer support (34%), and boosting marketing efforts (31%).
“We recently started using AI with our new website design, checking the verbiage to make sure it's right for search engine optimization (SEO) to bring in more clients,” said Harvey. “It has saved me so much time, especially describing our services to our clients. Something that used to take me a month now takes me an hour.”
Despite these technological strides, financial challenges persist. Black entrepreneurs are twice as likely to be denied bank loans (30%) than non-Black peers (15%), a gap that has widened since 2023. Consequently, fewer Black business owners (45%) applied for loans in the past year, down from 76% in 2023, reflecting a broader trend of reduced bank lending.
“I did apply for a lot of business loans, and I did get denied,” said Harvey. “It definitely prolonged opening up my business. I was surprised that I was denied a bank loan. If anything, it fueled me even harder to open up my doors and prove to myself that I could do this.”
The Intuit QuickBooks survey found that personal funding remains a necessity for Black business owners, with 80% using personal funds for expenses an average of nine times per year—higher than the seven times reported by non-Black entrepreneurs. Credit card reliance is also greater, with 65% of Black owners using them for unexpected expenses compared to 47% of non-Black owners.
Harvey says she is pursuing profitability without using credit cards or loans. “Business financing for me right now is really just our cash flow. We don't have a line of credit. We don't have credit cards. Whatever we get, we put it back into the business.”
Businesses that adopt technology earlier, according to the QuickBooks survey, are 20% less likely to rely on personal funds, indicating technology's role in improving financial resilience. “Without using digital tools, you don't really know where your money's going. I would definitely be spending way more personal funds. With digital tools, I'm able to see where the funds are going and how to better allocate the money,” said Harvey.
A promising trend is the decreasing financial barrier to entry. “Since 2023, Black-owned small businesses reported a decrease in the average cost to launch their ventures, falling from an estimated average of $21,000 to just $9,800,” said Intuit QuickBooks. “This reduction not only represents a relief in financial burden but is also noteworthy as it now stand below the startup costs face by their non-Black peers who spend an average of $12,900. This reversal from the trend noted in 2023 suggests a positive shift toward more accessible entrepreneurship for the Black community.”
Black entrepreneurs are leading in innovation by leveraging digital tools for resilience and growth. With 82% agreeing that technology creates a more level playing field, early adoption remains a key driver of success and long-term prosperity.
“My biggest hope is to make it a profitable business,” said Harvey. “I think in the last three years it's really been rough trying to figure out the margins and going from stylist to business owner. I pay my employees what they deserve, so it’s about figuring out how to keep everyone happy but also expand and grow in 2025.”
