Despite the threat of a recession and other economic uncertainties, small businesses are setting their sights on growth, according to the Chase 2024 Business Leaders Outlook survey.
The survey was designed to take a pulse of more than 1,000 decision-makers from businesses reporting revenues of less than $20 million, ultimately uncovering their priorities and strategies for the year ahead.
First, let’s start with the challenges: 35% of respondents said inflation remains a top challenge, encouraging them to adjust pricing and cost costs. However, these challenges also lead to positive action; 41% of respondents said inflation is a motivator to accelerate growth. Additionally, 44% of respondents said they have concerns about a looming recession and 82% are actively seeking financing to sustain crucial aspects of their operations, such as hiring, marketing and inventory replenishment.
3 Key Growth Levers for Small Businesses
The survey results indicate that a considerable number of small businesses are focused on growth and expansion. Tapping resilience and savvy business measures, they’re taking action to reach their goals.
Maintaining Optimism
Overall optimism has increased among small business owners and operators, spanning three areas:
- Company Performance: 69% express optimism, a slight increase from July 2023.
- Industry Outlook: 63% are optimistic, up from 58% in July 2023.
- Local and Global Economy: Sentiments are cautiously optimistic, with varying degrees of confidence.
Nurturing Team Resilience
Nearly two thirds (65%) of respondents recognize that stress impacts the mental health and well-being of their team members. However, 71% are confident in their resilience and plan to diversify their services and growth their businesses to bolster their full-time staff.
Driving Business Growth
Amid global uncertainties, businesses are taking proactive measures to grow. Small businesses specifically are focused on:
- New Customer Acquisition: 50% are prioritizing growth through new customers.
- Customer Retention: 45% emphasize retaining existing clients, acknowledging the power of loyalty for sustained success.
- Debt Reduction: 33% are strategically tackling debt amid economic unpredictability.
Respondents also indicated that artificial intelligence (AI) is a big investment area for them: 32% plan to use this technology better to streamline operations and gain a competitive advantage.
Click here to get more details about the survey.
