MCLEAN, Va., Nov. 9, 2017 /PRNewswire/ -- Small business
optimism continues to rise as a majority of business owners are
reporting increased sales and improved business conditions since
earlier this year. Capital One's (NYSE: COF) latest Small
Business Growth Index, which polled 500 small business owners in
August, found 60 percent of small business owners (SBOs) feel
current business conditions are good or excellent, and 37 percent
reported being in a better financial position than one year ago –
up from 31 percent since earlier this year.
Meanwhile, despite the growing optimism, challenges persist for
many small businesses. Taxes (45 percent), managing cash flow (42
percent) and keeping up with technology (32 percent) are top
concerns for business owners in the coming year.
"It is always encouraging to see a positive shift in small
business sentiment, considering the great impact they have on our
local and national economies," said Celia
Edwards Karam, head of small business bank at Capital One.
"At the same time, it's clear business owners need better tools to
help them address and manage challenges like cash flow and
technology. We remain focused on understanding these challenges and
delivering experiences designed to help businesses succeed and
grow."
Following are key themes uncovered by the fall 2017 Small
Business Growth Index. Additional findings, including historical
data and breakdowns, can be found here.
- Overall confidence is up: Capital One's Small Business
Confidence Score tracking overall small business sentiment on the
economy, hiring plans, future financial positions and recent sales,
has reached its highest point since 2012.
- Revenues are increasing: Nearly half (47 percent) of
SBOs reported increased sales in the past six months, up 10 points
from earlier this year.
- Yet hiring plans remain flat: Plans for growth remain
steady, with 25 percent of businesses planning to hire in the next
six months – down two points from earlier this year. Seventy-two
percent of SBOs said increases in minimum wage are not impacting
business growth.
- Concerns about cash flow and tech on the rise: The
number of SBOs concerned with cash flow management increased 11
points from fall 2016, while the number of SBOs concerned with
keeping up with technology increased seven points from fall
2016.
- Taxes and other regulations are top of mind: Nearly a
quarter (24 percent) of business owners report loosened federal and
state regulations have had a positive impact on growth. Meanwhile,
37 percent of SBOs say the Affordable Care Act (ACA) has had a
negative impact on business growth, and 30 percent say tax rates
and laws have negatively impacted their business.
Follow along on Facebook at Capital One Small Business and on
Twitter at @CapitalOneSpark.
Survey Methodology
Capital One's Fall 2017 Small
Business Growth Index Survey was conducted by the market research
and business intelligence firm ORC International. For this
telephone study, ORC interviewed a national sample of 500
for-profit small businesses in the U.S. Small businesses are
defined as those with a total annual revenue less than $10 million. Interviews were conducted from
August 17 – September 7, 2017. One respondent per business
was interviewed. The margin of error is +/- 4.38 percentage points
at a 95% confidence level.
The initial sample for this study was constructed using a random
selection from the extensive business database maintained by
Infogroup, Inc., and drawn to be representative of qualifying small
businesses throughout the U.S. by industry, region and employee
size. To compensate for variation in response rate among different
types of businesses, final data were weighted by region and
industry to help ensure the final results are proportionally
representative of the small business population. In developing the
weighting frame, ORC International considered the impact on
comparability with prior waves of the study.
About Spark Business
Capital One® offers a broad
spectrum of financial products and services to consumers, small
businesses, and commercial clients. Spark Business from Capital One
offers a diverse suite of financial products, tools and services
designed specifically for small businesses, including credit cards
with unlimited rewards, no-fee checking and savings and retirement
plans. Today, Spark Business works to address the unique needs of
millions of business owners across the U.S. so they can focus on
what they're most passionate about – running and growing their
business. Spark Business provides tips, resources and inspiration
to help your business thrive at
www.CapitalOne.com/Small-Business/SparkIQ. For more information,
visit CapitalOne.com/Small-Business-Bank.
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SOURCE Capital One Financial Corporation