According to the results of the recent 2024 Small Business Survey, released by TD Bank, the majority of small business owners (SBOs) are optimistic about the future. An impressive 90 percent of small business owners expressed confidence in their business outlook for the next 12 months, up from 80 percent in 2023, suggesting recovery from prolonged economic turbulence.
The survey also highlights SBOs' positive sentiments in several key areas:
Revenue: Nearly two-thirds (64 percent) anticipate increased revenue and sales over the next 12 months.
Growth Opportunities: Over half (59 percent) plan to expand their products and services within the next year, focusing on growth as the macroeconomic environment stabilizes.
Closures and Layoffs: A strong 94 percent have no plans to sell or close their business, and only 4 percent anticipate reducing their staff.
“Despite optimism for the latter half of 2024 and beyond, small businesses remain concerned about interest rates, inflation, and economic pressures. However, their confidence in revenue and growth underscores the resilience of small businesses," said Chris Giamo, Head of Commercial Banking at TD Bank. "Business owners with strong banking relationships are better informed and equipped to leverage resources, maintaining growth despite challenges."
Persisting inflation remains a significant concern for SBOs. Over half of small business owners cited inflation and interest rates (56 percent) and rising costs of supplies and equipment (58 percent) as top issues. Nearly two-thirds (64 percent) anticipate needing additional credit or financing in the next 12 months. Among them, half (50 percent) would use the funds to maintain operations, while others plan to support market expansion (47 percent) and launch new product lines (45 percent).
In an uncertain economy, small businesses heavily rely on their primary financial institutions. Customer service is a top priority for 62 percent of business owners, along with competitive rates (64 percent) and technical products that aid in business management (49 percent).
The survey found that SBOs maintain strong faith in their banking partners, with only 19 percent considering switching their primary financial institution within the next year. Moreover, 95 percent of those planning to apply for a loan or line of credit in the next 12 months are confident in their approval chances from banks of all sizes.
“One of the most important relationships for business owners is with their bank,” Dinkar-Patel noted. “A strong customer-banking relationship fosters trust, provides tailored financial solutions, and ensures a deep understanding of the business’s needs. This relationship is not just a financial necessity but the cornerstone of enduring success, enabling business owners to navigate challenges with confidence."
If you are a business owner or CEO within the San Francisco Bay Area or Silicon Valley, in need of an experienced fractional or outsourced CFO to help your company control costs, increase profit margins, improve cash flow as well as identify strategic growth opportunities, our highly skilled outsourced CFO services provide direct access to high-quality expertise in a cost-effective manner.
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