Survey Finds Small Businesses Increased Investment During Pandemic
Despite the financial challenges that the past several months have brought for small businesses, it seems that many owners actually increased their spending according to a report by Regions Bank. For their survey, Regions spoke with more than 500 entrepreneurs. In each case, they owned businesses with 100 or fewer employees. What they found was that a number of businesses — either by choice or by necessity — have recently ramped up investments in their operations.
In total, 46% of business owners surveyed reported increasing investment in their businesses since March of this year when the COVID-19 pandemic first surged in the United States. This includes 18% who say they put money into their technology and e-commerce efforts in recent months. Meanwhile, 12% said they’ve upped their investment in marketing and advertising. Additionally, another 12% stated that they’d increased their inventory and supplies. These results somewhat align with another survey by Comcast Business that found 31% of business owners are now embracing new technologies that they otherwise would have put off or ignored if not for the current circumstances.
Region’s survey comes just ahead of a free webinar the bank is hosting on November 10. Titled ” Steering Your Business Toward Success in the “New Normal,” the event will feature Bobby Hoyt of Millennial Money Man alongside Jim Kersey, a Regions consumer banking manager in Nashville. Those interested in the webinar can register for the live event and an on-demand presentation will be available afterward. Elsewhere, Regions’ Next Step page features several resources for small business owners including business calculators, articles, podcasts, and more.
Speaking to the survey’s findings, Regions’ Next Step financial education manager Joye Hehn said, “With business success tied to the ability to withstand financial challenges, many business owners have had to adjust to this new environment.” Hehn continued, “Reviewing the business’ financials within the current landscape can help in identifying ways to fine-tune operations and opportunities that could help propel the business forward.” Additionally, Kersey (who is set to speak at the aforementioned webinar) noted the importance of banking relationships, stating “Business owners continuously face important decisions on how to adapt their strategy. Having and building a relationship with a trusted banker can help business owners navigate the complexity of the market and make informed financial decisions.”
There’s no question that the past few months have been challenging for business owners across the nation. This includes potentially having to pony up additional investment money even as funds were tight. Yet, the good news is that these investments will hopefully pay off as the economy recovers. In the meantime, entrepreneurs and small business owners can look to lenders for financing options and to each other for ideas and support.
Also published on Medium.