MCLEAN, Va., March 16, 2015 /PRNewswire/ -- Small
business owners are feeling positive about financial conditions and
their local and national economies as they plan to increase
investments in business processes, technology, employee
compensation and other areas, according to Capital One's latest
Spark Business Barometer.
The national survey of small business owners found that half (50
percent) of small businesses' current business conditions are
"excellent" or "good" (up 6 points from one year ago), while nearly
two thirds (63 percent) are feeling optimistic about their local
economies in the coming year. Meanwhile, nearly two-fifths
(40 percent) reported increased sales over the past six months, and
35 percent claim their firms' financial position has improved
compared to one year ago.
The Barometer also looked at how business owners define and
measure success, and revealed the most important factors are
customer satisfaction, revenue and profit. Work-life balance and
community service are also important, particularly among women, but
many female business owners neglect to set boundaries to achieve
the balance they desire.
"Small businesses are upbeat, with many anticipating improved
economic conditions and planning for growth and investment – a good
sign for our economy and the communities these businesses serve,"
said Keri Gohman, Head of Small
Business Banking at Capital One. "However, with that success and
plans for increased investment comes greater responsibility and
roadblocks to achieving the work-life balance that many business
owners, especially women, so highly value. At Capital One,
we're committed to understanding these issues and delivering tools
and resources that save time and enhance business processes – so
business owners can focus on what's most important to them, whether
that's in or out of the office."
The Spark Business Barometer uncovered a number of key themes,
including:
As the economy improves, so do investments in the business
and its employees.
- Nearly three-in-five (57 percent) business owners plan to
invest more in improving business processes and technology, while
nearly the same number (55 percent) are setting aside funds for
unexpected emergencies.
- Small business owners are focusing on the future, with 35
percent saying they plan to put cash aside for capital
investments.
- Forty-six percent of respondents are setting funds aside to
increase employee compensation, and 55 percent report they are
setting aside funds for retirement.
Women and millennial-owned businesses continue to drive
optimism.
- Nearly three-fourths (73 percent) of millennial and more than
half (56 percent) of women led businesses feel current business
conditions are good, compared to 46 percent of males.
- When asked how their businesses are doing compared to last
year, 42 percent of female executives said their businesses are
doing "much better" or "somewhat better" compared to 31 percent of
males.
- More than half of millennials (57 percent) said their
businesses are doing better, more than any other generation
surveyed.
Customer satisfaction trumps profits and revenues when it
comes to measuring success. Work-life balance is also important,
but many don't take action to prioritize it.
- Customer satisfaction is the most popular measure for success
(identified as "very important" by 94 percent of respondents),
followed by revenues (77 percent) and profits (76 percent).
- Sixty-nine percent of women feel that achieving work-life
balance defines success, compared to 58 percent of men. To achieve
it, 43 percent of business owners take vacations, one-third (33
percent) set specific times for arriving and departing the office,
and more than a quarter (27 percent) restricted the amount of work
they bring home.
- Women are less likely than men to set ground rules or
restrictions on the amount of time they work, the number of days
they travel, or the number of speaking engagements they attend. In
fact, 31 percent of women say they don't set any ground rules,
compared to 25 percent of men.
Business owners believe they're maximizing tax deductions,
but may be missing important opportunities.
- Roughly eight-in-ten (or 83 percent of) respondents are
"confident" they are taking advantage of available tax deductions,
and 55 percent claim to be setting aside retirement funds.
- Despite this, only seven percent of small business owners say
they deduct 401(k) benefit expenses, and only 15 percent actively
contribute to a 401(k) plan to improve their personal tax
burdens.
E-Commerce is a proven sales driver across the broader
business landscape, but small businesses have yet to embrace this
sales approach.
- Only one-quarter (25 percent) of small business owners surveyed
report having websites with e-commerce functionality.
- Of those with e-commerce functionality, few realize significant
income from it, with a majority (58 percent) earning less than 10
percent of their sales from online purchases.
Capital One is committed to understanding the challenges, trends
and perceptions that affect small businesses' overall performance
and day-to-day operations. Follow along
on Facebook at Capital One Small Business and
on Twitter at @CapitalOneSpark. Use hashtag #SparkBizBarometer
to follow the conversation.
Survey Methodology
The findings reported in
this release are from a telephone survey conducted by the opinion
research firm, APCO Insight, the global opinion research division
of communications consultancy, APCO Worldwide. APCO Insight
interviewed a nationally-representative random sample of 400
for-profit small businesses in the U.S. Small businesses are
defined as those with less than $10
million in annual revenue. The interviews were conducted
from February 3 – February 17, 2015. All interviews were conducted
by telephone at their places of business. One respondent per
business was contacted. Interviews were monitored at random.
Sampling for this study was conducted using a national sample of
businesses drawn from InfoUSA. All interviews were conducted using
a computer assisted telephone interviewing (CATI) system.
Statistical weights were designed from the United States Department
of Commerce to ensure proper inclusion of all SIC codes, employee
size, and geography.
About Capital One
Capital One Financial
Corporation (www.capitalone.com) is a financial holding company
whose subsidiaries, which include Capital One, N.A., and Capital
One Bank (USA), N. A., had
$205.5 billion in deposits and
$308.9 billion in total assets as of
December 31, 2014. Headquartered in
McLean, Virginia, Capital One
offers a broad spectrum of financial products and services to
consumers, small businesses and commercial clients through a
variety of channels. Capital One, N.A. has branches primarily in
New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company,
Capital One trades on the New York Stock Exchange under the symbol
"COF" and is included in the S&P 100 index.
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SOURCE Capital One Financial Corporation