Survey finds optimism among small business owners

Small business owners expressed optimism for the future of their businesses over the next 12 months, according to a new survey from TD Bank.

The TD Bank 2024 Small Business Survey found that 90% of small business owners polled are feeling optimistic for the future of their business in the next year, up from 80% in 2023. In addition, 96% of respondents in New York believe their small business will perform well over the next six to 12 months.

Nearly two-thirds (64%) of small business owners surveyed foresee their business revenue and sales increasing and 59% of the respondents plan to expand products and services over the next 12 months, according to the survey.

Nearly all that were surveyed (94%) reportedthat they have no plans to sell or close their business in the next 12 months with just 4% planning to reduce their staff.

However, inflation remains an issue for small business owners. More than half (56%) of those surveyed cited both inflation and interest rates and the increasing costs of supplies, materials, and equipment (58%) as top concerns.

“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,” , head of Commercial Banking at TD Bank, said in a company statement. “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.”

Almost two-thirds (64%) of those surveyed said they will have additional credit or financing needs over the next 12 months. Of those,50% noted that the loan or line of credit would be used to maintain company operations, with others reporting 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 & Commercial Distribution at TD Bank, said in the statement. “It's a promising sign that almost half of business owners are looking for financial support to invest in growth objectives.”

The TD Bank survey was conducted by Big Village between April 3 to April 15 among a sample of 1,014 small business owners and partners. Small business owners are defined as respondents having less than 100 employees with a recent fiscal year revenue between $250,000 and $5 million.

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