15 Aug The Results Are In: Small Business Confidence Is Increasing
A down economy is the nightmare of every small business owner. The uncertainty it causes can result in less consumer spending, and that translates into fewer revenues for all types of small businesses. And if a small business doesn’t have a good strategy or enough working capital in place to make it through an unexpected economic downturn, it might end up closing its doors for good. The past few years have been tough, but the US economy is finally regaining its strength. Stocks are rebounding, consumers are confident, and employment numbers are on the rise. How does this positive news resonate with small business owners and equipment dealers? Here at Balboa Capital, we sent a survey to more than 150,000 of them to find out. This Balboa Capital equipment financing blog entry highlights the results.
Things Are Looking Up
We work with small business owners and equipment dealers on a daily basis, and many of them are reporting good news in terms of their revenues and business outlook for the remaining months of 2013. When developing our small business survey, our goal was to pinpoint some of the key issues that small business owners and equipment dealers are facing today, and gauge how confident they are about the future. Here are some of the key results of our survey:
- 72% of small business owners feel the US economy is improving
- 43% are extremely confident about the economy
- 39% of small business owners are seeing increased revenues this year
- 58% of equipment vendors are seeing increased revenues this year
- 88% of equipment vendors are confident about their businesses
The most common investment goals among small business owners include business expansion (34%), marketing (21%), increasing staff (20%) and purchasing equipment (13%)
- 31% of small businesses will finance equipment this year
Other Economic Factors
The increased business optimism can also be attributed to the positive numbers that are being reported in housing and manufacturing sectors. New home sales are on the rise, and economic activity in the manufacturing industry expanded for the second month in a row. The health of the US economy is directly related to how well the housing and manufacturing sectors are performing. When these sectors are moving in a positive direction, they benefit a wide variety of industries. The demand for more products and services increases, and this helps drive sales for manufacturers, retailers and equipment dealers. Of course, more jobs are created when the housing and manufacturing sectors are making a significant improvement.
Balboa Capital will be conducting additional small business surveys in the future in order to provide our prospects and customers with business confidence updates. We gathered the results from our latest business survey and created a small business survey infographic that you can view, download or share.