Majority of small business owners are
optimistic about increasing revenue and maintaining staff in next
12 months
According to the results of the 2024 Small Business Survey,
released today by TD Bank, America’s Most Convenient Bank®, a large
majority of small business owners (SBOs) have a positive outlook on
the future of their business. 90% of the SBOs surveyed noted their
optimism for the future of their business in the next 12 months,
which is up from 80% in 2023, indicating a light at the end of the
tunnel following prolonged turbulence in the economic
environment.
Alongside their positive outlook, the survey found that SBOs are
also optimistic about the following areas of their business:
Revenue: Nearly two in three (64%)
SBOs foresee their business revenue and sales increasing in the
next 12 months.
Growth Opportunities: When it comes
to expanding products and services, over half (59%) of SBOs noted
that they plan to do so in the next twelve months, indicating that
small businesses are honing in on growth tactics as the
macroeconomic environment levels out.
Closures and Layoffs: SBOs are
showing an overwhelming sense of confidence around their business’s
health, with almost all (94%) noting that they have no plans to
sell or close their business in the next 12 months. Similarly, only
4% plan to reduce their staff.
Inflation’s Continued Effects
“While many small businesses remain optimistic heading into the
second half of 2024 and 2025, they have continuing concerns about
interest rates, inflation and economic pressures. However, SBOs'
optimism surrounding revenue and business growth is a testament to
the resiliency of small businesses who have weathered tough
economic circumstances and proven their ability to effectively
navigate a challenging economy,” said Chris Giamo, Head of
Commercial Banking at TD Bank. "We aren't in uncharted territory –
business owners who have a strong relationship with their banker
remain informed of the economic landscape and are able to leverage
resources that will help them maintain and grow despite the
challenges.”
Despite increased optimism around their businesses, persisting
inflation continues to weigh on SBOs. More than half cited both
inflation and interest rates (56%) and the increasing costs of
supplies, materials, and equipment (58%) as top concerns.
Data from the survey highlights the impact these macroeconomic
conditions have on SBOs, with almost two-thirds (64%) noting they
will have additional credit or financing needs over the next 12
months. Of those SBOs, half (50%) noted that this loan or line of
credit would be used to maintain company operations, with others
noting they’d use the funding or credit to support expansion into
new market verticals (47%) and launching a new product or service
line (45%).
“As small businesses continue to grapple with lingering economic
headwinds, having a trusted financial institution in their corner
for continued guidance and financial support is crucial,” said Amy
Dinkar-Patel, Head of Small Business & Commercial Distribution
at TD Bank. “It's a promising sign that almost half of business
owners are looking for financial support to invest in growth
objectives. But whether they're looking to expand or equip
themselves with financing solutions, TD is committed to helping our
small business customers through every phase of their business's
life.”
Trusted Relationships Are Key
In a shifting, uncertain economy, SBOs rely heavily on their
primary financial institutions to help them with their business
functions and health. Customer service in particular is weighted
heavily among business owners, with 62% noting it as a top function
they look for in a bank, along with competitive rates (64%) and
technical products and services that help them manage their
business (49%).
The survey also found that SBOs continue to have faith in their
banking partners and the value they offer, with less than one in
five (19%) considering changing the primary financial institution
they use for business purposes within the next year. Additionally,
the majority (95%) of SBOs who noted they will apply for a loan or
line of credit in the next 12 months are confident they would be
approved through a big, mid-size or small regional bank –
emphasizing their confidence in their financial health and in their
bank's ability to support their business.
“One of the most important relationships business owners can
develop is with their bank,” Dinkar-Patel noted. “The right
customer-banking relationship fosters trust, unlocks tailored
financial solutions, and ensures a deeper understanding of the
business's unique needs. The relationship between a small business
owner and their bank isn't just a financial necessity – it’s the
cornerstone of enduring success, allowing business owners to
weather inevitable storms with confidence.”
Survey Methodology
This report presents the findings of a CARAVAN® survey conducted
by Big Village among a sample of 1,014 small business owners and
partners. The survey was conducted between April 3-15, 2024.
Small business owners are defined as respondents having less
than 100 employees with a recent fiscal year revenue between
$250,000 and $5 million.
About Big Village
Big Village is a global advertising, technology and data
company. Driven by its diverse group of experts, Big Village
provides a new way of working by bringing programmatic solutions,
media, insights and creative all under one roof. Big Village is
headquartered in New York and has 12 offices across North America,
Europe and Australia.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10
largest banks in the U.S. by assets, providing over 10 million
customers with a full range of retail, small business and
commercial banking products and services at more than 1,100
convenient locations throughout the Northeast, Mid-Atlantic, Metro
D.C., the Carolinas and Florida. In addition, TD Auto Finance, a
division of TD Bank, N.A., offers vehicle financing and dealer
commercial services. TD Bank and its subsidiaries also offer
customized private banking and wealth management services through
TD Wealth®. TD Bank is headquartered in Cherry Hill, N.J. To learn
more, visit www.td.com/us. Find TD Bank on Facebook at
www.facebook.com/TDBank and on Instagram at
www.instagram.com/TDBank_US/.
TD Bank is a subsidiary of The Toronto-Dominion Bank, a top 10
North American bank. The Toronto-Dominion Bank trades on the New
York and Toronto stock exchanges under the ticker symbol "TD". To
learn more, visit www.td.com/us.
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version on businesswire.com: https://www.businesswire.com/news/home/20240508292524/en/
Media: Madison Brock TD Bank Corporate Communications
Manager II Madison.Brock@td.com
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