Black business owners and workers face greater financial and health care challenges, according to new QuickBooks survey

Pandemic disproportionately affects financial health

As we saw in the introduction to this report, more than two in five Black respondents (41%) say their personal finances have gotten worse during the pandemic. Roughly a third (36%) of other respondents say the same, as the chart below illustrates. 

Black business owners face similar challenges here as Black workers, with 42% saying the pandemic has negatively affected their finances. Among other business owners, this drops to 29%.

Overall, a third of Black respondents (33%) report that their personal finances aren’t good right now, with one in seven (13%) describing their finances as “terrible.” In comparison, just 6% of other respondents say the same. 

Again, it’s a similar story when we look at business finances. More than one in four Black business owners (27%) describe the current financial health of their business as “poor” or “terrible”—compared to just one in ten (11%) of their peers who say the same.

This may explain, as we’ll discover in the next section, why people are so focused on improving their financial health in 2022.

Achieving financial goals is the top priority for 2022

This year, the majority of Black respondents (52%) say their no.1 priority is to achieve their financial goals. Second and third on the list are “achieving health goals” and “achieving career or business goals.”

This isn’t a new trend. Back in 2020 and 2021, when federal stimulus checks were distributed, more than three in five Black respondents (61%) used the money to invest in their future. Almost one in five (19%) used their stimulus checks to start new businesses—which may help to explain the recent surge of new business growth that is predicted to continue in 2022.

More than half are making well-being a higher priority

The Black Business Health Survey looked at many aspects of health and well-being—which are also the focus for Black History Month this year. According to the CDC, well-being comprises physical, mental, social, professional, and financial health. Under this definition, more than one in two Black respondents (54%) say they are making well-being a higher priority this year because of the pandemic.

According to the survey respondents, mental health has the greatest impact on overall well-being, followed by good financial health.

Will barriers put goals out of reach?

The data also reveals a number of barriers which could make it harder for some to achieve their goals this year. These include disparities in health care access, a reluctance to discuss health issues, and—as we’ve already seen—financial problems caused by the pandemic.

Among those who are more focused on well-being this year, mental health emerges as the highest priority. But as the chart below shows, many of us don't like to discuss mental health with others, which may be counter-productive.

In addition, one in three Black respondents (32%) say they cannot prioritize self-care as much as they would like. They explain this is primarily because they too often have to prioritize other things, or other people, first.

In the next section, we take a deeper dive into health care disparities.

Average health care debt is $18,000 per person

The Black Business Health Survey included several questions about health care access, insurance, and costs. This reveals that around two in five respondents currently have financial debt due to health care costs, averaging roughly $18,000 per person.

More than one in three (37%) doubt they will be able to pay this debt off during their lifetime, with 17% saying it is “somewhat unlikely” and 20% saying it is “very unlikely.”

Black respondents are less likely to have health insurance or good access to health care

Almost one in four Black respondents (24%) report that they currently have no health insurance, compared to 13% of other respondents. The same proportion (24%) say that while they do have health insurance, it is not sufficient. This compares to just 18% of other respondents.

Despite these challenges, many report positive well-being

The good news is that more than one in four Black respondents (27%) rate their physical well-being as “excellent”—compared to 21% of other respondents.

Almost a third (30%) rate their mental well-being as “excellent”—compared to 23% of other respondents.

A similar proportion (29%) rate their social well-being as “excellent”—compared to 22% of other respondents.

And the same proportion (29%) rate their well-being at work as “excellent”—compared to 24% of other respondents.

Useful resources

• Take Space: Resources for your well-being
• Employee health benefits for every budget
• Affordable 401k plans for employees
• Guide to employee benefits for small business
• What are employee benefits and why are they important
• How to get health insurance when you’re self-employed

*Methodology and sample

QuickBooks commissioned a survey of 4,000 business owners, employees, and self-employed people throughout the U.S. in January 2022. In total, there were 2,000 Black respondents and 2,000 other respondents (of whom 82% are white, 6% are Hispanic, and 5% are Asian). Black respondents were more likely to be self-employed and less likely to only earn W-2 income (i.e., as full-time employees with no side jobs).

Responses were collected via Pollfish audience pools and networks using double opt-ins and random device engagement sampling methodology to ensure accurate targeting. Percentages are rounded to the nearest decimal place.

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