There’s a light at the end of the tunnel following prolonged turbulence in the economic environment. A large majority of small business owners had a positive outlook on the future of their business, according to the results of the 2024 Small Business Survey, released Wednesday by TD Bank. Ninety percent of the owners surveyed noted their optimism for the future of their business in the next 12 months, which is up from 80% in 2023.
The survey found that owners also were optimistic about the following areas of their business:
- Revenue: 64% of owners foresee their business revenue and sales increasing in the next 12 months;
- Growth opportunities: 59% of owners noted that they plan to expand products and services in the next 12 months; and
- Closures and layoffs: 94% said their business are healthy and have no plans to sell or close in the next 12 months.
“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,” Chris Giamo, head of commercial banking at TD Bank, said. “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 small business owners. 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 highlighted the impact these macroeconomic conditions have on owners, with almost two-thirds (64%) noting they will have additional credit or financing needs over the next 12 months. Of those owners, 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,” Amy Dinkar-Patel, head of small business and commercial distribution at TD Bank, said. “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.”
The 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. Small business owners are defined as respondents having less than 100 employees with a recent fiscal year revenue between $250,000 and $5 million.
