Study Predicts Growth for Small Businesses in 2019
June 13 2019 - 10:00AM
The fifth annual First Citizens Bank Small Business Forecast
reveals that most small business owners plan to significantly grow
their businesses this year. Overall, 74% of respondents expect
their businesses to grow in the next six to 12 months — a 12%
increase from the 2018 survey. Of the surveyed states, California
has the highest number of small business owners planning to expand
in the near-future (89%) while Wisconsin has the fewest (47%).
“Our report shows promising numbers for the success of small
business owners and for our overall economy in 2019,” said Kate
Stackhouse, director of sales strategy at First Citizens Bank.
“Year after year, the vision and accomplishments of these business
owners have an immense impact on the health of our economy. We
strive to equip business owners with the insights they’ll need to
help them follow their passions and navigate shifting market trends
to achieve an even stronger business performance in 2020.”
With 81% of millennials looking to expand their businesses in
2019, the forecast found younger business owners are generally more
eager to grow when compared to baby boomers (66%) and Gen Xers
(71%).
Increasing current customer satisfaction and loyalty is the top
growth strategy among small business owners (51%), followed by
identifying new customers (45%). Creating new products and
businesses is the third most-popular strategy for owners to achieve
growth (29%).
While small business owners were satisfied with their
performance, 68% expressed optimism around future economic
conditions. Millennial small business owners have the most
confidence in the U.S. economy (72%), a 12% increase from 2018. In
general, those surveyed agree that the states where their
businesses are located are great places to start a business. Of the
states surveyed, Florida had the most significant increase in
optimism around economic conditions in 2019— rising four percentage
points from last year to 73% — followed by North Carolina (67%),
South Carolina (58%), California (54%) and Wisconsin (53%).
Other findings include:
- More than half of respondents (53%) indicated that their
businesses benefited from the tax reform in 2018. In last year’s
study, 55% of respondents predicted the tax reform would benefit
small business owners in general.
- Finding different avenues for reaching new leads/prospects is
the top 2019 sales initiative for small business owners (44%),
followed by growing the sales pipeline (33%). Investing in
technology or software to streamline the sales process ranks third
this year (22%).
- Most respondents (76%) consider their businesses to have been
successful over the past year. Wisconsin has the most small
business owners who think they were successful in 2018 (87%),
followed by Florida (83%).
- Forty-three percent (15% higher than last year) indicated they
are planning to secure funding to expand their businesses in the
next 6-12 months. Of these respondents, 48% plan to use bank loans.
Other popular methods of securing funding are through personal
savings (41%) and friends and family (33%).
- When considering marketing strategies, one-in-five small
business owners said they plan to work with social influencers on
product promotions. Across generations, millennials are the most
likely to use social influencers in their 2019 marketing strategies
(24%) followed by Gen Xers (20%).
The First Citizens Bank Small Business Forecast is
conducted annually in California, Florida, South Carolina and North
Carolina to assess the motivations, sentiment and success of U.S.
small business owners. Wisconsin was included in this forecast for
the first time this year. For more information, visit
https://www.firstcitizens.com/smallbizstudy.
About First Citizens Bank Founded in 1898 and
headquartered in Raleigh, N.C., First Citizens Bank is one of the
largest family-controlled banks in the U.S., with offices in 19
states. Drawing from over a century of experience serving the needs
of business customers, First Citizens focuses on developing
long-term relationships and offers a comprehensive array of
products and services to help small businesses manage their
finances and grow. First Citizens Bank is a major subsidiary of
First Citizens BancShares Inc. (Nasdaq:FCNCA), which has over $35
billion in assets. For more information, call toll free 1.866.FCB
4BIZ (1.866.322.4249) or visit firstcitizens.com/business. First
Citizens Bank. Forever First®.
Contact:
Barbara ThompsonFirst Citizens Bank 919.716.2716
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