According to a survey conducted by Balboa Capital, eight out of 10 small business owners experienced revenue increase in Q1/16. Additionally, a sizable percentage of small business owners that received tax refunds plan to invest their returns back into their businesses. The survey was sent to more than 300,000 small business owners nationwide in April 2016.

“Small business owners had a strong first quarter and are anticipating a hike in economic growth during the first half of 2016, and this is leading to increased confidence and business investing,” said Jake Dacillo, director of marketing at Balboa Capital. “Respondents to our survey who received tax refunds indicate they will use their returns to purchase equipment and inventory, hire more employees and expand their operations.”

Key findings of Balboa Capital’s 2016 “tax time” survey:

• 76% of small business owners reported moderate to significant revenue increases in Q1.
• 79% of small business owners expect to see growth in the US economy during the first half of 2016.
• Among small business owners who completed their taxes in 2016, 14% received a refund and 56% did not receive a refund.
• Small business owners who received tax refunds this year intend to use their returns for either equipment/technology acquisition, debt consolidation, expansion initiatives and/or increased employee hiring.
• 75% of small business owners used the Section 179 tax deduction to deduct the full or partial price of business equipment that was purchased and put into place in 2015.

“Business owners were also surveyed on the types of financing they secured in Q1, and small business loans and equipment financing top the list,” Dacillo said.