HomeSmall Business TrendsSurvey Results: Small Business Optimism in 2020 Remains Strong

Survey Results: Small Business Optimism in 2020 Remains Strong

Every year, the QuickBridge Small Businesses Owner Survey measures the pulse of small businesses. This year we received responses from 560 small businesses across the U.S. Despite the economic uncertainty often associated with an election year the majority of small business owners remain optimistic about their business prospects for 2020.

Small business owners expect strong sales

Our survey results show that small businesses are confident in the U.S. Economy in 2020. This is similar to survey results. While the U.S. GDP grew by only 2.3% in 2019, the lowest rate in the last three years, 65% of small business owners are confident that growth will continue in 2020.

According to the U.S. Bureau of Economic Analysis projects that the economy will grow at a rate of 2.6% in 2020 and 2.9% in 2021. This growth is based on a large amount of productivity gains, which are expected to be accompanied by a gradual rise in capital expenditure and consumer confidence during the second half.



Some respondents were understandably uncertain about the impact of international trade and political issues on their businesses. 81% of respondents said they expected their business to grow in 2020. Only 14% of respondents expect flat sales, and only 5% predict a decrease in sales.

The plans of small business owners to hire more staff in 2020 also reflect this confidence. Nearly 60% of small business owners plan to hire more staff in 2020, while only 3.4% expect to reduce their staff. Moreover, 68% of owners of small businesses expect to have a positive cash flow in 2020.

Small Business Capital Investments to Rise Despite Cautions

Forbes reports that capital expenditures by businesses decreased in the third quarter after two quarters of stagnation, a sign of uncertainty relating to international trade negotiations. Capital spending in 2020 is expected to increase due to the anticipated economic growth as well as lower financing costs.

This cautious optimism is echoed by the sentiment of business owners. In response to the question of how they anticipate the amount they spend on capital expenditures to change, half said they expected it to rise, 38% said it would remain the same and close to 12% predicted a decrease.

Small businesses are not affected by taxes and tariffs

While some business owners have been more cautious due to ongoing issues with international trade, 66% of respondents said that the U.S. China trade situation will not have an impact on their business by 2020. In the same way, recent changes to tax laws have had no effect on 48% of respondents.

Over 27% of respondents said that the tariff situation would cause their costs increase. This is indicative of larger business risks associated with international trade. These include higher imports, shorter contract lengths, slower customs processes, and lower consumer demand.

The biggest challenge for small businesses is to secure capital

Small businesses are faced with a variety of challenges. This is especially true in the first few years when they are trying to gain traction. The survey of small business owners revealed that the greatest challenge for them in 2020 will be securing capital. One respondent said, “For small businesses like mine, all I need is some working capital.” For unexpected business expenses, slow seasons, paying wages and buying new equipment.

It is not surprising that small businesses face major challenges due to a lack of capital. In 2020, small business owners will face a number of other challenges, including growth, increasing profits, hiring new employees, increased operating costs and developing new products/services.

You can view the complete results of our QuickBridge 2020 Small Business Owner Survey in this video:

QuickBridge, as a leading alternative lending company, works to improve the ability of small business owners to access financing. Our application process is streamlined to make it easier for you. We can often provide funding in a matter of days. Traditional lenders can make it difficult to qualify for small business loans. QuickBridge’s small-business loans do not require collateral, and we also consider owners of businesses with less than stellar credit. We can help your business grow in 2020. Contact us to find out more.

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