Survey Shows Small Businesses Expect Strong Economic Growth in 2020
In 2019 we saw small business optimism reach record levels and remain at historic highs. This was not only influenced by economic strength but also by the direct increase in sales many business owners were enjoying. Now a new survey from Balboa Capital suggests that the majority of small businesses are expecting the good times to keep rolling in 2020.
First and foremost Balboa’s survey revealed once again that 2019 was a strong year for the majority of small business owners. In fact 53% of respondents reported seeing their revenue increase during the year while only 18% observed a dip. What’s more 74% stated that their business was better off today than it was one year ago. Small business respondents also seemed optimistic about their 2020 business prospects. In addition to the 58% who said they planned to increase their capital investment this year, 41% expect that they’ll be hiring more employees over the next 12 months.
Turning to the economy at large, business owners also seemed to expect greater growth. The survey found that 82% of respondents believe the United States economy will see moderate to strong growth in 2020. Interestingly “only” 80% said the economy grew last year with 17% stating that they thought growth was flat for the year.
As mentioned, the majority of business owners surveyed said they planned on investing more capital into their operations this year. On that note one-quarter of those who said they planned on applying for capital in the first quarter of the year said they’d turn to small business loans. Meanwhile 19% preferred small business lines of credit and 13% expected to go the equipment financing route. In terms of where they anticipated getting funds from, banks were the top choice for 42% of respondents. Online lenders were next up with 29% followed by credit unions with 21%.
Reflecting on the survey and what they mean, Balboa Capital’s Manager of Sales Planning and Coordination Kevin Umeda said, “The results show that small business owners are maintaining their optimism in early 2020.” Umeda went on to explain how his company would be benefiting from that positivity, stating, “It’s no secret that when small business owners feel confident about the United States economy, they are more likely to invest in their operations. The potential for continued growth in the small business sector in 2020 is definitely there, and we are ready to support business owners who need fast, easy access to capital.”
Following an impressive 2019, the fact that small business owners have high hopes for the follow up shouldn’t be shocking. Regardless, it’s always encouraging to see this confidence on display. Hopefully that optimism continues to turn to progress and investment to keep this economic train chugging along.