Small business owners have a positive economic outlook, with 65% expecting revenue growth in 2024. Over the next 12 months, they plan to expand their businesses and hire more employees. However, there is a slightly more cautious attitude towards the national economy, with only 33% expecting improvement. Concerns such as the presidential election, inflation, healthcare costs, and interest rates are top of mind for small business owners.
Inflation continues to be a concern for small businesses, impacting operations in various ways, such as price increases, reevaluation of cash flow, and wage increases for employees. Fewer small businesses plan to obtain funding this year, with only 16% planning to apply for a bank loan or line of credit, down from 24% in the previous report. Small businesses have also become more reliant on credit cards, with balances up 18% since 2019.
Customer engagement is a top priority for small business owners, with personalized interactions, customer feedback, and social media being key tactics for attracting customers. Implementing sustainable business practices is also on the rise, with 81% of small businesses implementing sustainable practices, such as minimizing paper usage and working with sustainable vendors. Challenges in implementing sustainability include increased costs and customer indifference to sustainability efforts.
Many small business owners have made personal and professional sacrifices to maintain profitability, such as increasing prices, working more hours, and reducing their own salary. Mid-sized business owners are even more optimistic than small business owners, with 87% believing their revenues will increase, 80% planning to expand, and 69% planning to hire. Concerns around potential recession and supply chain issues have seen notable declines from the previous year.
Overall, small and mid-sized business owners anticipate a good year ahead, with confidence in their businesses and revenue expectations. While concerns about inflation persist, small business owners are investing in their futures and remaining optimistic. For a comprehensive look at the insights of the nation’s small and mid-sized business owners, the full 2024 Bank of America Business Owner Report provides valuable information.
