Survey Shows Small Businesses Expect Strong Economic Growth in 2020

Home » Small Business » Small Business News » Survey Shows Small Businesses Expect Strong Economic Growth in 2020

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.


Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


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 in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Survey Shows Late Credit Card Payments Aren't Always About Being Broke

Everyone knows that carrying a balance on your credit card can lead to interest fees, adding to your debt. However there's another expensive risk that consumers may run afoul of: late fees. In fact a new survey from the personal finance site WalletHub finds that 46 million Americans anticipate missing...

LendingClub to Acquire Radius Bank for $185 Million

As various FinTech disruptors have grown over the years, some observers have theorized that banks would look to acquire these startups in order to integrate their services into their own (which has happened in some cases). However fewer would have guessed that things might end up the other way around... Introduces Coin-Creation Tool Called "Mint"

In 2017 — when Bitcoin broke-out, reaching a record of near $20,000 per coin — cryptocurrency suddenly became a phrase that even everyday Americans were at least somewhat familiar with. Of course the majority are likely only aware of Bitcoin itself and not any of the other multitude of tokens...