Small business owners are feeling optimistic about the future, with 65% expecting revenue growth in 2024, according to the Bank of America Business Owner Report. They also plan to expand their businesses and hire more employees. However, concerns about the national economy and the impact of the upcoming presidential election are top worries for small business owners.
Inflation remains a concern, with 84% of small businesses reporting that it currently impacts their operations. As a result, many businesses have raised prices, reevaluated cash flow, and increased employee wages. However, concerns about inflation and higher interest rates have decreased compared to a year ago.
Obtaining funding is becoming less of a priority for small businesses, with fewer planning to seek financing this year. Credit card usage among small businesses has increased, with balances up 18% since 2019. However, adjusted for inflation, credit card balances are comparable to or even lower than 2019 levels.
Small businesses are prioritizing customer engagement, with personalized interactions and social media playing a key role in attracting and retaining customers. Gathering customer feedback is also essential for small business owners, with many monitoring online review platforms and requesting feedback in person and through surveys.
Many small business owners are implementing digital strategies to optimize their operations, with actions including online banking, accepting cashless payments, and increasing their social media presence. Additionally, sustainable business practices are gaining traction, with 81% of businesses implementing sustainable practices and facing challenges such as increased costs and customer indifference.
Overall, both small and mid-sized business owners are optimistic about the future, with plans for growth, hiring, and obtaining funding. Concerns around potential recession and supply chain issues have decreased compared to previous years. Despite ongoing challenges such as inflation and economic uncertainties, small business owners remain confident in their businesses and are investing in their futures.
