First Citizens Bank Forecast Shows Business Growth Confidence Back to Pre-Pandemic Levels
May 03 2021 - 11:00AM
Small business owners have indicated a renewed sense of confidence
for growth in their businesses during the year ahead despite the
ongoing global pandemic, according to a new survey.
The seventh annual First Citizens Bank Small Business Forecast
found nearly 80% of respondents polled are confident or very
confident in business growth over the next 12 months, which is a 9%
increase since September 2020 and a return to pre-pandemic
levels.
Of the states in which the survey was conducted, California had
the highest increase in business growth confidence — a 19% increase
over the last six months with 84% of respondents expecting a strong
year ahead.
Forty percent cited COVID-19 as a top concern impacting their
ability to meet their business goals this year, which is an 11%
decrease from just six months ago, and 25% of business owners
stated that COVID-19 increased demand for certain
products/services.
“The small business community continues to show us its
resiliency and flexibility to adapt to today’s realities without
letting the challenges steal their optimism for a brighter future,”
said Doug Sprecher, director of Sales Strategy at First Citizens
Bank. “This study indicates that small business owners are
continuing to be resourceful to not only stabilize but also grow
their businesses in the months and years ahead. For 123 years,
First Citizens has been on the side — and by the side — of small
business owners. We’ll continue to use this data to educate and arm
them on the opportunities that exist for strong business
performance, while helping them plan and address any challenges
today’s market produces.”
Economic Viewpoints
The survey also found economic sentiments for this year and
beyond are on the rise. Of those polled, 61% of respondents are
confident or very confident about the economic conditions over the
next year, which is a 4% increase from six months ago. California
small business owners showed the greatest increase in the outlook
for near-term economic conditions with 71% indicating they are
confident or very confident about the economy in the year ahead.
This is a 22% increase from September 2020.
As it relates to long-term economic recovery, two-thirds of
respondents stated they are optimistic or very optimistic about the
economic conditions in the next two to three years. Once again,
California showed the strongest gains in the long-term economic
outlook with 74% (up 17% from September 2020) expressing optimism
in the years ahead. Florida saw the sharpest decline in long-term
economic optimism with just 54% (down 17% from September 2020)
stating they were optimistic or very optimistic about the economy
in that timeframe.
Other Key Findings
- Of factors impacting business
owners’ abilities to meet their goals in 2021, 35% said the new
presidential administration was a top concern. Other factors
included unpredictable market conditions (32%) and the impact of
climate change (21%).
- Overall, business owners’
perceptions of being successful or very successful in the last six
months declined from 71% in September 2020 to 61% in 2021. Florida
(28%), Wisconsin (23%) and California (21%) showed the sharpest
decline in perceived business performance with a difference of 28%,
23% and 21%, respectively.
- With 40% of business owners
indicating they plan to secure funding in the next year, banks
continue to lead the funding considerations at 49%. Business credit
cards (40%) is a close second for funding considerations.
- Top growth strategies for the year
ahead include adding new products/services (47%), increasing
advertising or marketing budgets (43%), hiring more employees
(40%), and increasing or upgrading current facilities/equipment
(26%).
- Local loyalty continues to drive
positive sentiment with 72% of all respondents in all five markets
agreeing that the state where their business is located is a great
place to start a small business. By state, the percentage of
respondents agreeing their state is a great place to start a
business is: California (62%), Wisconsin (74%), North Carolina
(75%), South Carolina (76%) and Florida (77%)
The First Citizens Bank Small Business Forecast is conducted
annually in California, Florida, Wisconsin, South Carolina and
North Carolina to assess the motivations, sentiments and success of
small business owners in the United States. For more information on
the survey and its results, visit
firstcitizens.com/smallbizsurvey.
About First Citizens BankFounded in 1898 and
headquartered in Raleigh, N.C., First Citizens Bank is one of the
largest family-controlled banks in the United States, with offices
in 19 states. Drawing from over a century of experience serving the
needs of business customers, First Citizens focuses on developing
long-term relationships and offers a comprehensive array of
products and services to help small businesses manage their
finances and grow. First Citizens Bank is a major subsidiary of
First Citizens BancShares Inc. (Nasdaq:FCNCA), which has over $53
billion in assets. For more information, call toll free 1.866.FCB
4BIZ (1.866.322.4249) or visit firstcitizens.com/small-business.
First Citizens Bank. Forever First®.
Contact: |
Barbara
Thompson |
|
First Citizens Bank |
|
919-716-2716 |
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