Small Business News
Survey: Majority of Small Businesses Optimistic About 2025
A new survey finds that many small business owners are feeling positively about the economic outlook for this year.
About the survey results:
According to a survey conducted by WSFS Bank, 60% of small businesses expect a slight or significant increase in revenues this year. This includes 16% who said they anticipated revenues to rise significantly over the next 12 months. In contrast, only 2% of those surveyed expect a significant decrease in business revenue is ahead.
Also as part of the survey, respondents were asked whether they agreed with the following statement: “I am concerned about whether my business will still be in operation a year from now.” While nearly a third (32%) of those surveyed did agree with that sentiment, in a further show of optimistic outlook, a majority (54%) disagreed.
Interestingly, these figures were practically reversed when business owners were asked if their businesses were negatively affected in the past two years. To that, 53% of respondents agreed that they had experienced unfavorable impacts compared to 31% who said they hadn’t. Asked what factors especially harmed their businesses in the past two years, the top response was inflation (59%), along with “cost of living crisis” (45%), the threat of a recession (31%), reduced consumer spending (27%), and supply chain challenges (23%).
Further speaking to increased optimism, the vast majority of business owners were confident that they’d be approved for various loans. Specifically, 82% of respondents said they’d likely be approved for equipment financing, while 76% said the same of a working capital loan and/or expansion funds. In fact, 26% of those surveyed said they intend to apply for a loan in order to purchase equipment in the next 12 months. Similarly, one-quarter expect to take out a loan for working capital, while another 24% want to do so in order to expand their current business.
Of note, for the purposes of their survey, WSFS defines a small business as having less than $5 million in revenue and at least two employees.
What they’re saying:
Commenting on the survey results, WSFS Bank SVP and Chief Business Banking Officer Candice Caruso said, “Small businesses have demonstrated remarkable adaptability in an environment where uncertainty has become the norm. Many small business owners are planning ahead and transforming their businesses by embracing technology, refining operational efficiencies, and seeking new ways to serve their customers.”
Meanwhile, the bank’s Director of Small Business Sales Jeremy Shackleford stated, “As small businesses navigate an evolving economic landscape, it’s more important than ever to closely examine areas like debt management, strengthening vendor relationships, and exploring strategic financing options to fuel growth. Additionally, businesses should continue to monitor and build their credit profiles, as well as work with trusted partners, like their banker and accountant, to identify opportunities for cost savings.”
My thoughts:
As always, it’s important to point out the incentives survey conductors have to emphasize certain data from said surveys. In this case, it’s clear that WSFS Bank would like small business owners to consider taking out a loan with them. Despite that motive, I do think it’s interesting to see what small business owners are apparently feeling optimistic about the economy going forward. For what it’s worth, this also jives with similar surveys and studies that have been released in recent months.
Of course, every small business is different and there’s no predicting exactly how certain factors will affect them. Therefore, it’s up to each entrepreneur to decide when the best time to invest in expansion plans or equipment upgrades would be.
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