50% of Small Businesses Exit a Challenging 2024 with Expectations of Revenue Increases Heading into 2025 According to Thryv’s Small Business Index
December 10 2024 - 9:05AM
Business Wire
- Less than half of SMBs say their revenue increased over the
past year; 50% expect revenue increases through Q1 2025
- A quarter expect a deteriorating economy to extend into 2025,
down from 42% last year at this time
- The amount of SMBs likely to invest in technology and
infrastructure jumped 61% year-over-year
Despite 2024’s economic punch, small businesses proved resilient
with 40 percent experiencing revenue increases. They are also more
optimistic entering the new year than they were a year ago at this
time, according to the 2024 Small Business Index from Thryv®
(NASDAQ: THRY). The leading do-it-all small business software
platform provider, Thryv surveyed 500+ small business owners and
decision makers in various industries across the U.S. from
September 4-13, 2024.
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the full release here:
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40 percent of small businesses say their
revenue increased over the past year. (Graphic: Business Wire)
Although more than half (53 percent) of small businesses cited a
deteriorating U.S. economy in 2024, their economic outlook is on a
slight upswing entering 2025. While less than half (45 percent)
expect the economy to improve, that is a 61 percent increase over
last year at this time.
The Role of Technology
The majority (66 percent) of small businesses plan to manage any
expected lift in their business with existing staffing levels.
Technology stands to play a role in how they will scale despite
level headcounts: 29 percent of small businesses say they are
likely to invest in equipment and infrastructure, a 61 percent
increase over 2023. More than a third plan to increase their
technology budget. Artificial Intelligence (AI) will also be a
factor: 31 percent are currently using AI, but 43 percent expect to
use AI in 2025, a 38 percent year-over-year increase.
“As small businesses look to turn the page on an economically
challenging 2024, a majority tell us they are holding their own
against their competitors and half are expecting to see revenue
increases over the coming months,” said Joe Walsh, Chairman and CEO
of Thryv. “Planned investments in technology and AI will help small
businesses scale with existing staffing levels, pointing to a
promising year ahead.”
2024 Challenges and Successes
- Degree of Difficulty: when asked
if it has been more difficult or easier to run their business today
than it was a year ago, 51 percent say it is about the same, while
38 percent say it is more difficult. Only 11 percent say it is
easier today than a year ago.
- Economic Woes: almost one-third
worry efforts to control high inflation will not come fast enough
to help their business.
- Election Concerns: just over half
(53 percent) worried about the U.S. presidential election and its
impact on the economy and government regulations.
- Revenue Changes: 40 percent of
SMBs say their revenue increased over the past year.
- Competitive Strength: an
impressive 82 percent say they hold their own against their
competitors.
- Employee Count: only roughly 14
percent have decreased headcount.
Looking Ahead to 2025
- Revenue Expectations: 50 percent
expect their revenues to increase in Q1 of 2025.
- Profit Margins: 47 percent expect
their profit margins to remain level; 39 percent expect their
profit margins to increase; 14 percent expect a decrease.
- Economic Outlook: when asked what
their expectations are for the U.S. economy over the next 6 months,
45 percent expect it to improve; 30 percent expect it to remain the
same; 25 percent expect it to deteriorate.
- Investing in their Business: 43
percent are likely to invest in equipment or infrastructure; 29
percent are unlikely to make those investments; 28 percent are
indifferent.
- Technology Investment: 57 percent
expect their software budget to remain the same; 37 percent plan to
increase their investment; only 6 percent expect to decrease
budget.
- Employee Count: 66 percent expect
to keep their headcount the same; 28 percent expect to increase it;
only 6 percent expect a decrease in headcount.
Why They Do What They Do
When asked what best describes why they opened their business,
48 percent say it has always been their dream to be
self-employed.
This description aligns with answers received to the question:
what brings you the most joy from owning your own business:
- 35 percent say being their own boss
- 29 percent say making a living doing something they love
- 14 percent say creating something that fills a need for
people
- 13 percent say having a work/life balance
- 9 percent say providing employment for others
“Being your own boss is a dream that comes with a unique set of
challenges. That’s where marketing automation and operations
technology can step in, helping those dreamers achieve sustained
growth so they can focus on doing what they love,” said Walsh.
To access the 2024 Thryv Small Business Index, visit:
https://www.thryv.com/2024-smb-index/.
Study Methodology
Thryv conducted the research from an online survey of 507 small
business owners and decision-makers in various industries across
the United States. All respondents met the following criteria:
business owner and/or decision maker over the age of 21. Business
size is less than 100 employees with approximate annual revenue
ranging from $100,000 to $10,000,000. Businesses surveyed have been
operational for at least one year.
About Thryv
Thryv Holdings, Inc. (NASDAQ:THRY) is the provider of the
leading do-it-all small business software platform that empowers
small businesses to modernize how they work. It offers small
business owners everything they need to communicate effectively,
manage their day-to-day operations, and grow — all in one place —
giving up to 20 hours back in their week1. Thryv’s customizable
platform features three centers: Thryv® Command Center, a freemium
central communications hub, Thryv Business Center™ and Thryv
Marketing Center™. Approximately 300,000 businesses globally use
Thryv software to connect with local customers and take care of
everything they do, start to finish. For more information, visit
www.thryv.com.
1 Based on Thryv survey sample of 181 clients. Calculations
assume a 40-hour work week. Results may vary.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241210905765/en/
Media Contact: Julie Murphy Thryv, Inc. 617.967.5426
julie.murphy@thryv.com
Investor Contact: Cameron Lessard Thryv, Inc. 214.773.7022
cameron.lessard@thryv.com
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