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.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Bilt Extends Rent Day Promotion for Black Friday and Beyond

In October, the unique Bilt Mastercard unveiled its inaugural Rent Day promotion, which included the opportunity for cardholders to earn double rewards and nearly all of their purchases on the first of the month. That deal returned in November alongside the addition of a United Airlines status match offer and more. Now, just in time for Black Friday, Small Business Saturday, and Cyber Monday, Bilt is extended December's Rent Day...

Venmo App Adds Charitable Giving Interface

Although Thanksgiving and retail holidays such as Black Friday, Small Business Saturday, and Cyber Monday may be on the minds of many people, a popular peer-to-peer payment app is looking ahead to Giving Tuesday. This week, Venmo announced the rollout of a new interface that will make it easier for users to discover and donate to various charities. The feature is now live in the latest version of the Venmo...

American Express Introduces New Credit Card Approval Process

For some consumers, applying for a new credit card can be anxiety-inducing as there's a chance that they could not only be declined for the product but also have their credit impacted by the credit inquiry. To give these applicants better peace of mind, American Express is rolling out a new approval process. Amex has announced a new pilot program for its U.S. Personal Cards (meaning non-business cards) that will allow...