Even though the vagueness of the US presidential election and the holiday season, many small businesses are confident about their business’ prospects, based on the introductory 2016 Fall/Winter Chase Business Leaders Outlook report released today. Almost two-thirds of the 900 small businesses surveyed confirmed that they are confident about their small business over the following 12 months, and 55% think the same regarding their industry. On the other hand, almost 49% were confident about their local financial system and 42% about the national economy. Both have dropped in past two surveys.
Hispanic owned businesses seem more positive, with almost 87% expecting sales and revenue to go up and 81% assume profits to go up in the subsequent twelve months.
Laura Miller, president of U.S. Small Business for Chase Commerce Solutions states that most small businesses are still confident about their own development, just as they were in our spring survey”. As the vacations coming near, most businesses expect rise in online sales, and nearly half are expecting their customers will spend even more this year. Small businesses survey emphasizes on:
59% small businesses expect more online holiday sales this season over last year. Furthermore:
- 46% businesses expect an increase in customer spending
- 40% expect the shopping season to start earlier
- 3% intend to keep longer hours
65% businesses are optimistic about their business’ performance, with confidence on the financial system strongest to home domestic consistent from last years.
Financing & Lending
59% small businesses intend to borrow this year, rise from 52% in last year. Of those getting business funding, the best option when thinking about a lender is a tie at 37% planning on going to banks/conventional lenders/credit unions or using business credit cards. The major reasons for using the proceeds are working capital 18%, marketing 16%, buying and repairing equipment 18%, purchasing inventory 13%, remodeling 12%, software and technology 13%, expansions 11% and refinancing 11%.
Hispanic-owned business leaders’ optimism in a season of change:
- 42% businesses plan to increase full-time workers and 63% intend to increase part-time workers
- 32% are minority supplier specialized and lots of see these outside associations delivering the most value for their small business:
- 45% businesses find value in networking agencies
- 37% businesses say financial experts add value to their small business
- 26% small businesses say trade and industry associations add value to their business
- 40% businesses spend working capital on mobile marketing and advertising versus 18% of non-Hispanic
- 76% small businesses use mobile banking weekly versus 44% of non-Hispanic
- 53% businesses accept contactless bills versus 27% non-Hispanic
The Chase Bank “Business Leaders Outlook” surveyed almost 900 small businesses; asking questions ranging from financial plans and technology investments to expected vacation spending and worker compensation. The response they get is the same as the results they have seen over the last three years.