Small Bus. Owners Investing Significant Personal Time & Savings to Grow Their Business, According to American Express OPEN Re...
February 03 2016 - 9:00AM
Business Wire
Many are planning capital and talent
investments, but concerns about the economy remain high
Seventy-nine percent of small business owners continue to make
growing their business a top priority, but many are making personal
sacrifices in the process. According to data from the most recent
American Express OPEN Small Business Growth Pulse, 89% of small
businesses indicate they invest a significant amount of their
personal time in an effort to grow their business. Also in line
with these findings, six in ten (60%) small business owners say
they spend a larger percentage of time working ON their business to
drive growth rather than IN their business managing details.
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Many small business owners are not only giving their time, but
are also contributing their personal finances to boost their
business. More than two-thirds (68%) report that they invest a
substantial portion of their personal savings to help their
businesses grow. Within this finding, there is also a difference
between male and female business owners. Male business owners (72%)
are more likely than their female counterparts (62%) to be
investing personal funds in order to grow their business. Business
owners in the manufacturing industry are also more likely to invest
a substantial portion of their personal savings in an effort to
grow their business (89% for manufacturing vs. 73% for retail and
60% for the services industry).
Talent and Capital Investments Are Planned to Fuel
Growth
As they follow their path to growth, a number of small business
owners are planning both capital and talent investments. As many as
59% plan to hire staff over the next six months, and among those
with hiring plans, 29% are planning to hire only full-time workers;
22% are planning to hire only part-time workers; and 8% are
planning to hire both full and part-time workers. Additionally, 71%
plan to make capital investments, which include investments in
computer and systems software/additional software licenses (42%)
and manufacturing/production equipment (23%).
“As 2016 unfolds, small business owners are working harder than
ever to position their businesses for growth,” said Janey
Whiteside, SVP & GM Customer Marketing & Relationship
Management, American Express OPEN. “The personal commitments that
small business owners make are vital to their success, and their
planned investments are indicative of how important growth is in
the coming year.”
Economy and Cash Flow Present Challenges to Growth
While small business owners remain confident in their ability to
grow their businesses, the economy remains a top concern. Uncertain
economic conditions was identified as the single greatest challenge
that business owners face (24%; up from 17% when asked in August
2015), followed by concerns about the rising costs of doing
business (17%; flat from August). Among manufacturers, financing
(finding money to expand) is the biggest challenge (27%), followed
closely by uncertain economic conditions (26%).
Cash flow is another cause for concern, as nearly two-thirds
(64%) of small business owners expect to experience cash flow
issues over the next six months. Their greatest cash flow concerns
include:
- Having enough cash on hand to win new
business (18%)
- The ability to accurately track cash
flow (16%)
- Accounts receivable (14%)
Despite these headwinds, small business owners see various ways
to meet these challenges and grow their businesses. When asked
about the top two most important triggers that could really take
their business to the next level, 40% said expanding their
product/service offerings while 34% said expanding the market for
their current products and services.
Confidence in Access to Financing; Credit/Charge Cards Seen
As Important Tool
An overwhelming majority of small business owners (92%) are
confident that they can access the funding they need to grow their
business. When looking at how they will fund and grow their
businesses, 71% identify credit and charge cards as an important
tool and 35% see them as a “very” important tool. Given the
importance of credit cards as a source of short-term funding, three
quarters (76%) of business owners who use credit cards for business
expenses indicate that an increase in their credit limit would be
beneficial to their business. And, among those who have hit their
credit limit, more than half (57%) have attempted to have their
limit increased.
More than three quarters of small business owners (78%) who use
credit cards for business expenses say credit card rewards are
important to their business. The rewards that they see as most
valuable include:
- Cash back (74%)
- Airline miles (32%)
- Travel discounts (29%)
Survey Methodology
The American Express OPEN Small Business Growth Pulse is based
on an online sample of 1,001 U.S. small business owners/managers of
companies with $250,000 or more in revenues and fewer than 100
employees. The anonymous survey was conducted via the Internet by
Ebiquity December 9-18, 2015. The poll has a margin of error of +/-
3.1% at the 95% level of confidence.
About American Express OPEN
American Express OPEN is a leading payment card issuer for small
businesses in the United States and supports business owners and
entrepreneurs with products and services to help them run and grow
their businesses. This includes business charge and credit cards
that deliver purchasing power, flexibility, rewards, savings on
business services from an expanded lineup of partners and online
tools and services designed to help improve profitability. Learn
more at www.OPEN.com and connect with us at openforum.com and
twitter.com/openforum.
About American Express
American Express (NYSE:AXP) is a global services company,
providing customers with access to products, insights and
experiences that enrich lives and build business
success. Learn more at americanexpress.com and connect
with us on facebook.com/americanexpress,
foursquare.com/americanexpress,
linkedin.com/company/american-express, twitter.com/americanexpress,
and youtube.com/americanexpress.
Key links to products, services and corporate responsibility
information: charge and credit cards, business credit cards, Plenti
rewards program, travel services, gift cards, prepaid cards,
merchant services, corporate card, business travel and
corporate responsibility.
About Ebiquity, Plc.
Ebiquity are independent marketing performance specialists.
Ebiquity enables brands across the world to make better informed
decisions to improve their brand and business performance across
integrated communications channels. Learn more
at ebiquity.com.
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M BoothSamantha Coulombe212-539-3272Samanthac@mbooth.comorAmerican ExpressHeather
Norton212-640-0496Heather.A.Norton@aexp.com
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