Majority of Small Business Owners Saw Revenues Rise in 2017
As far as small businesses go, the good news just keeps rolling in. Following studies indicating increased optimism among entrepreneurs and reports that small business loan applications were being approved at higher rates, a newly released survey by National Small Business Association finds that revenues for the majority of business owners rose in 2017. Additionally hiring increased significantly during the year as well.
The NSBA notes that, for the first time this decade, the majority of small business owners reported their revenue had recently risen. During the survey conducted in December of last year, 53% of owners said their revenues had increased over the past 12 months. That figure is up 10 points from July of 2017 and is also up from the 47% that answered the same way in December 2016. At the same time, the number of owners with decreasing revenues shrunk from 24% in July 2017 to 20% in December.
Looking toward the future, 66% of those surveyed said they expect revenues to increase in the coming year. That’s slightly lower than 67% who believed as much this time last year but up from 61% in July. Still, those expecting revenue decreases were fewer — down from 11% for the past two surveys to 9% today.
Zooming out from their businesses, 59% of entrepreneurs say they anticipate more economic expansion in the next 12 months whereas only 45% made that prognostication in July last year. The study also found that 63% felt the economy had improved in the last year while 10% felt it had worsened. Interestingly, although 78% said the economy had gotten better overall in the past five years, 12% felt the opposite way, with another 11% saying it was about the same.
Finally the NSBA study, which was sponsored in part by ZipRecruiter, found hiring among small business had increased in 2017. Back in December 2016, a quarter of businesses reported increased hiring during the year. That number slipped to 22% in July but ending up reaching 30% at the end of last year. This is also another area where entrepreneurs show optimism as 38% expect to add to employees to their team this year.
Overall this latest study from the National Small Business Association just reinforces what we’ve heard a lot of lately: business is good. As revenues rise, it seems entrepreneurs are also creating jobs and helping to grow the economy at large. With the recent tax bill passing and other changes in the works (not to mention the absence of retail holidays), it’ll definitely be interesting to see what the July edition of this particular report brings and to see if respondents’ predictions come true.
Also published on Medium.