Small Business Owners are Optimistic About the Future of their Businesses

by | May 14, 2024 | Business Insights

According to the results of the 2024 Small Business Survey released by TD Bank, a large majority of small business owners (SBOs) have a positive outlook on the future of their business. 90% of small the SBOs surveyed noted their optimism for the future of their business in the next 12 months, which is up from 80% in 2023, indicating a light at the end of the tunnel following prolonged turbulence in the economic environment.

Alongside their positive outlook, the survey found that SBOs are also optimistic about the following areas of their business:

  • Revenue: 64% of SBOs foresee their business revenue and sales increasing in the next 12 months.
  • Growth Opportunities: When it comes to expanding products and services, 59% of SBOs noted that they plan to do so in the next twelve months, indicating that small businesses are honing in on growth tactics as the macroeconomic environment levels out.
  • Closures and Layoffs: SBOs are showing an overwhelming sense of confidence around their business’s health, with 94% noting that they have no plans to sell or close their business in the next 12 months. Similarly, only 4% plan to reduce their staff.

Inflation’s Continued Effects

“While many small businesses remain optimistic heading into the second half of 2024 and 2025, they have continuing concerns about interest rates, inflation and economic pressures. However, SBOs’ optimism surrounding revenue and business growth is a testament to the resiliency of small businesses who have weathered tough economic circumstances and proven their ability to effectively navigate a challenging economy,” Chris Giamo, head of commercial banking at TD Bank, said. “We aren’t in uncharted territory — business owners who have a strong relationship with their banker remain informed of the economic landscape and able to leverage resources that will help them maintain and grow despite the challenges.”

Despite increased optimism around their businesses, persisting inflation continues to weigh on SBOs. More than half cited both inflation and interest rates (56%) and the increasing costs of supplies, materials and equipment (58%) as top concerns.

Data from the survey highlights the impact these macroeconomic conditions have on SBOs, with 64% noting they will have additional credit or financing needs over the next 12 months. Of those SBOs, 50% noted that this loan or line of credit would be used to maintain company operations, with others noting they’d use the funding or credit to support expansion into new market verticals (47%) and launching a new product or service line (45%).

“As small businesses continue to grapple with lingering economic headwinds, having a trusted financial institution in their corner for continued guidance and financial support is crucial,” Amy Dinkar-Patel, head of small business and commercial distribution at TD Bank, said. “It’s a promising sign that almost half of business owners are looking for financial support to invest in growth objectives. But whether they’re looking to expand or equip themselves with financing solutions, TD is committed to helping our small business customers through every phase of their business’s life.”

Read the full article here

Article by

<a href="" target="_blank">Connor Yost</a>

Connor Yost

As an Opus Consulting partner, Connor has been instrumental in establishing the firm’s emerging markets division, Nucleus One. Connor’s expertise is in creating financial projections and business plans for specialized manufacturing nationwide. Connor is a lead consultant on process revisions, regulatory compliance, and technical application writing. Additionally, he guides clients through municipal rules, regulations, and processes to better advance their projects. Prior to joining Opus, Connor spent time in both the consumer lending and mortgage industries. When he is not in the office, Connor enjoys the outdoors, including snowboarding and golfing. Connor holds a B.S. in Business Administration with a focus in accounting from the Peter T. Paul College of Business and Economics at the University of New Hampshire.
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