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31 Jan Small Business Confidence Remains High Heading into the New Year
With an unpredictable outlook for the U.S. economy, you would expect small business owners to be concerned about their future. However, they’re optimistic looking ahead to the new year. We recently surveyed small business owners on their expectations for business growth and the U.S. economy in 2019. Approximately 60 percent of respondents predict the U.S. economy will grow over the next year. Another 28 percent foresee it remaining flat, with just 12 percent anticipating a decline. With small business confidence remaining high, let’s explore how business owners plan to take advantage of anticipated opportunities ahead.
Exploring Small Business Confidence in the U.S. Economy
Our survey data points to strong small business confidence in the U.S. economy in 2019. According to Reuters, the Congressional Budget Office expects the global domestic product to grow by approximately 2.4 percent in 2019. While this is slower than the growth rate in 2018, it still represents projected national economic expansion. Although there has been recent market instability, the positive anticipation remains intact. In response, small business owners are willing to invest in their business operations moving ahead. Highlights of our survey include:
Sales and Staffing Growth Are Likely
Approximately 83 percent of respondents expect their sales to increase in 2019. Only 2 percent anticipate a decline. Growth isn’t exclusive to sales. More than 55 percent of respondents plan on hiring additional staff in the new year, with just 3 percent expecting to cut roles.
A positive sales and staffing climate create opportunities for organizations to invest in their growth. Strategic financing programs can empower small business owners to get the resources they need to expand. The right loan can drive business success by improving daily operations and helping cover essential business expenses.
Diverse Financing Plans Are on the Horizon
Hoping to accelerate growth or solve key problems, small business owners plan to use funding for a wide range of purposes in 2019:
• percent plan to use small business financing for business expansion.
• 32 percent plan to use small business financing for equipment purchases.
• 31 percent hope to use the extra capital to help bridge cash flow shortages.
• 26 percent are seeking out small business financing for materials or inventory.
Financing Plans Remain Strong in the Tax Climate
The new tax laws impacting small businesses received mixed reviews. While 35 percent of respondents expect to have a reduced tax burden due to new tax laws, another 49 percent expect no impact.
Regardless of the tax situation, our survey points to small business confidence in the economy and a strong move toward financing to take advantage of upcoming opportunities. The right small business loans can be used to pursue business goals in the new year.
Online Lenders Stand out Among Small Business Owners
Many small business owners are considering financing programs to help them grow in 2019. If past experiences are any indication, plenty of them will be turning to online lenders for a more accessible experience. 54 percent of respondents think online lenders make it fairly easy to secure funding when compared to traditional lenders. 22 percent find the online lending process very easy and 24 percent difficult.
As an online lender, QuickBridge works to increase small business owner’s confidence in accessing funding. We use a streamlined application process to make applying easier and often deliver funding within 24 hours. Small business loans through traditional lenders come with strict requirements and are hard to qualify for. At QuickBridge, our loans don’t require collateral and we often approve business owners with less-than-stellar credit. Contact us today to learn more about how we can help you grow your business in the new year.