Small Business Optimism Jumps Nine Points
"It's encouraging to see more small businesses feeling optimistic about their performance and future prospects, particularly women and younger business owners who represent increasingly significant segments impacting our local and national economies," said
Meanwhile, despite the increased optimism, the survey showed many businesses appear hesitant to invest in people, technology and marketing that may fuel business growth, with a majority of SBOs reporting they have no plans to hire (67 percent), increase marketing (66 percent), or invest in new technologies such as mobile payments (62 percent) in the coming six to twelve months.
Following are key themes revealed by the Spring 2017 Small Business Growth Index. Additional data and insights, including historical, demographic and regional comparisons, can be found here.
Business owners are feeling good and expect conditions to continue improving in 2017.
- Fifty-percent of all SBOs report their financial position is about the same as a year ago and 50 percent also expect to be in a better position six months from now; meanwhile only four percent expect to be in a worse position in six months – the lowest reported percentage since fall 2012.
- Women and millennials are driving optimism, with 47 percent of women saying they'll be in a better financial position six months from now (up 13 points from fall 2016) and 73 percent of millennials expecting better conditions (compared to Gen X at 53 percent, and Baby Boomers at 49 percent).
- SBOs in the Northeast and South are considerably more optimistic, with 57 percent of SBOs in those regions expecting improved conditions, compared to the Midwest (45 percent) and West (42 percent).
Despite the optimism, most SBOs are still hesitant to invest in the near-term.
- Only 27 percent of SBOs plan to add more employees in the next six months (compared to 26 percent one year ago) with nearly two-thirds (63 percent) of those hires being full-time associates vs. part-time or contractors.
- Top factors SBOs believe may impact business include: taxes (50 percent), managing cash flow (32 percent), keeping up with technology (30 percent), minimum wage increases (22 percent), access to capital (16 percent) and immigration reform (9 percent).
Businesses that use data analytics and mobile payments are more likely to have increased sales.
- Nearly half (46 percent) of SBOs who currently offer mobile payments say sales have increased over the past six months, compared to 35 percent who do not use mobile payments.
- Similarly, 44 percent of SBOs who use data analytics tools report increased sales, compared to 33 percent who do not.
The initial sample for this study was constructed using a random selection from the extensive business database maintained by
About Spark Business
Capital One® offers a broad spectrum of financial products and services to consumers, small businesses, and commercial clients. Spark Business from
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/small-business-optimism-jumps-nine-points-300433957.html
Casey Werderman, Casey.Werderman@capitalone.com