Small Business Optimism Hits New High in 2015 U.S. Bank Small Business Survey
May 06 2015 - 8:00AM
Business Wire
- More business owners plan to hire,
expand in coming months
- Business conditions strongest so far
this decade
- Not taking action yet, demand for
credit is still low
The results of the 2015 U.S. Bank Small Business Annual Survey
are in and they show small business owners are more confident about
the future of their businesses now than at any time in the six year
history of the survey. Optimism is on the rise, businesses are
healthier, and they may be on the verge of taking action to expand;
however, few are actually seeking credit to do it.
“The economy is gaining momentum and we are starting to see
optimism rise among small businesses,” said Andrew Cecere, chief
operating officer of U.S. Bancorp. “There is tremendous potential
in that optimism. Small businesses are critical to the health of
our economy. As their bankers, we are always advocating for them
and looking for ways to help them take advantage of opportunities
to expand and grow.”
When asked about the national economy, 18 percent of small
business owners said they felt the economy was in recession in
2015, down from 89 percent in 2010. Moreover, 67 percent say the
national economy is in recovery or expansion, up from 46 percent in
2013.
Business owners who said they plan to add staff increased to 25
percent in 2015 from 20 percent in 2014. Three out of four (76
percent) say their business is financially strong, and their
revenues have stabilized, with 28 percent saying revenue increased
and 52 percent stating that it had stayed the same over 2014.
Most are still not seeking credit, however, with 86 percent
reporting they had not tried to borrow money for business purposes
in the last six months. Of those who did borrow, 65 percent said it
was easy, compared to just 44 percent who cited easy access to
credit last year. In addition, significantly more small business
owners (34 percent) said they plan to make a capital expenditure to
expand their business over the next year.
“We are more than lenders – we are champions for small
businesses, focused on helping convert their dreams and ideas into
practical and prudent plans,” said John Elmore, vice chairman and
head of branch channel and delivery at U.S. Bank. “Our role as
bankers is to understand our small business clients’ opportunities
and challenges as much as possible. They want us to relate to them
in a simple, transparent way, and to be with them for the long haul
– through the times of growth and contraction.”
Increased competition and rising healthcare and labor costs
surfaced as more significant challenges facing business owners this
year, however for the first time since 2010, fewer than half (47
percent) said the long-term impact of the Affordable Care Act will
be negative. Business owners were split on whether the health care
law resulted in premium hikes – 49 percent said they had higher
premiums, 45 percent said there was no impact, and 7 percent said
their premiums were lower. (Note: percentages do not add to 100
because of rounding.)
Mobile and social media are now an established part of the small
business owner’s overall delivery, with 75 percent of respondents
saying they have integrated a mobile solution into their business
strategy, and 67 percent reporting that they maintain a social
media presence to make connections, find talent or market their
business. Top business uses of mobile include accessing bank
accounts, accessing social media, making and accepting payments and
depositing checks. They also offer mobile-friendly sites, use apps
to organize and manage their business and use text alerts to market
products, services or promotions.
The U.S. Bank Small Business Survey, now in its sixth year,
monitors the attitudes, perceptions and outlook of small business
owners across the 25-state U.S. Bank footprint. The survey was
conducted by Market Probe via an online sample in January 2015
among 3,202 small business owners with less than $10 million in
annual revenue. Full results of the survey are posted on U.S. Bank
Connect, a small business networking and information sharing site
for small businesses from U.S. Bank.
About U.S. BankU.S. Bancorp (NYSE: USB), with $410
billion in assets as of March 31, 2015, is the parent company of
U.S. Bank National Association, the 5th largest commercial bank in
the United States. The Company operates 3,172 banking offices in 25
states and 5,016 ATMs and provides a comprehensive line of banking,
brokerage, insurance, investment, mortgage, trust and payment
services products to consumers, businesses and institutions. Visit
U.S. Bancorp on the web at usbank.com.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20150506005151/en/
U.S. Bank Corporate CommunicationsTeri Charest,
612-303-0732teri.charest@usbank.com@usbank, @usbank_news
US Bancorp (NYSE:USB)
Historical Stock Chart
From Mar 2024 to Apr 2024
US Bancorp (NYSE:USB)
Historical Stock Chart
From Apr 2023 to Apr 2024