Optimism Trends Upward and Growth is Top Priority, Says American Express OPEN Small Business Monitor
May 17 2017 - 7:30AM
Business Wire
One-in-five Entrepreneurs Say that their
Businesses are “Riding High” and Growing Strong in the Current
Economy
Optimism among small business owners is on the rise, according
to the 2017 American Express OPEN Small Business Monitor. The
annual survey found that nearly three quarters of business owners
have a positive outlook on the economy and their own business
prospects over the next six months (72%, up from 64% 2016 and 67%
2015). This rosy outlook is translating into immediate plans for
growth. Business owners have made growth their single most
important priority, surpassing keeping/maintaining current business
and sources of revenue for the first time since Spring 2011.
This year, business owners find themselves in a good position to
expand. One-in-five entrepreneurs (20%) say that their business is
“riding high” and growing strong in the current economy. Cash flow
concerns are flat (34% vs. 36% a year ago) and business owners
remain confident they can access the capital necessary to grow
(82%, on par with 83% 2016).
As they shift into growth mode, entrepreneurs plan to make
capital (56% vs. 51% 2016) and hiring investments (45% vs. 39% last
year and 34% in 2015). They are also increasing their usage of
social media tools (65% vs. 57% last year). The primary reason
business owners are using social media is to attract new customers
(52%).
“In this economy, there’s a clear correlation between business
owner optimism and plans for growth,” said Susan Sobbott,
President, Global Commercial Payments, American Express. As they
look to grow, business owners plan to increase capital investments,
hire staff and increase usage of low cost methods like social media
to attract new customers.”
Staffing up with the Best Candidates Proves to be a Growth
Challenge
According to the survey, entrepreneurs plan to invest in staff
as a means to grow their businesses. Nearly three-quarters (74%)
need to hire in order to handle growing business or to help
increase business volume (72%). As they look to meet their staffing
needs, the greatest number of small businesses (17%) will hire a
combination of full and part time employees, 16% will hire only
part timers and 12% will hire only full timers.
To set their business apart from the competition, 78% of
entrepreneurs will place a heightened focus on better servicing
their customers. Business owners are aware of the importance of
having proficient employees. More than three-in-ten (31%) say their
business mantra is “You are only as good as your people.” But
securing the best employees is a concern. Finding the right staff
continues to be the number one challenge to growth (26%, up from
19% last year).
Large Majority Attribute Happiness to Being an Entrepreneur;
Continue to Take a Salary
Business owners’ optimistic outlook is not limited to business.
A large majority of entrepreneurs (94%, on par with 95% in 2014)
say they are happy with their lives. Of these, more than
eight-in-ten (81% on par with 80% in 2014) say their happiness is
due somewhat or entirely to being an entrepreneur.
Another bright spot is that the number of business owners who
pay themselves a salary is holding steady year over year (55% vs.
51% last year). For those entrepreneurs who are taking a salary,
they are paying themselves an average of $75,970 per year,
basically unchanged from $76,010 last year.
Continuing on this positive trend, fewer entrepreneurs are
worried about their ability to save for retirement (45%, down from
53% 2016). On average, they believe they will need $1,182,000, up
slightly from the $1,170,000 they thought they needed last
year.
Additional survey results including findings by gender, industry
and geography are available by contacting Alex Della Rocca at
212-539-3203 or alexd@mbooth.com.
Survey Methodology The American Express OPEN Small
Business Monitor, conducted since 2002, is based on a nationally
representative sample of 700 U.S. small business owners/managers of
companies with fewer than 100 employees. The anonymous survey was
conducted via telephone by Ebiquity March 29 - April 21, 2017. The
poll has a margin of error of +/- 3.7% at the 95% level of
confidence.
About American Express
American Express is a global services company, providing
customers with access to products, insights and experiences that
enrich lives and build business success. Learn more at
americanexpress.com and connect with us on
facebook.com/americanexpress, instagram.com/americanexpress,
linkedin.com/company/american-express, twitter.com/americanexpress,
and youtube.com/americanexpress.
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version on businesswire.com: http://www.businesswire.com/news/home/20170517005112/en/
M BoothAlex Della Rocca, 212-539-3203Alexd@mbooth.comorAmerican
ExpressFelicia Mowll, 212-640-1709Felicia.A.Mowll@aexp.com
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