Balboa Capital Survey: Small Business Owners Foresee Economic Growth
OCT 25, 2017 - 7:08 am
Balboa Capital released the results of its Q4/17 survey that was conducted to gauge business owner optimism. The survey results reveal that business owners are confident that the economy and their companies will perform well during the final months of the year. Seventy-seven percent of SBOs expect the nation’s economy to experience growth in Q4/17, a 17 point increase from Q4/16. The survey was sent to a sample of small business owners in a variety of industries nationwide in October 2017.
Key Findings of Balboa Capital’s Q4/17 Small Business Owner Survey:
77% of SBOs think the U.S. economy will experience growth in Q4, up from 60% in Q4/16
54% of SBOs expect their company’s sales to increase in Q4, a 4% decrease from Q4/16
47% of SBOs expect to increase their company’s spending in Q4
43% of SBOs plan to hire new employees in Q4, up from 20% in Q4/16
When SBOs were asked how they plan to market their companies during the holiday season in Q4, 31% said special holiday promotions and/or discounts, 21% said holiday gift cards, 18% said holiday e-mail marketing to customers and/or prospects, 11% said holiday contests and 7% said free or discounted shipping
Among SBOs who will seek financing for their companies in Q4, the most popular options include line of credit (25%), equipment financing (22%) and small business loans (16%)
62% of SBOs will choose an alternative lender for their financing needs in Q4/17, up from 30% in Q4/16
46% of SBOs plan to purchase or lease equipment to meet the Section 179 tax deduction deadline that ends on December 31, 2017
“As the year comes to a close, the positive economic sentiment expressed by business owners is influencing their investment decisions,” said Carla Freberg, vendor services manager at Balboa Capital. “Close to half of the small business owners we surveyed are planning to increase their spending in the fourth quarter. This is consistent with what our company is seeing, as many business owners are actively seeking growth capital for things like equipment, technology, and vehicles.”
Freberg also stated that business owners are preparing for the cutoff date of the Section 179 tax deduction by securing funding to lease all types of business equipment that are eligible for this incentive.
“Business owners have until December 31, 2017 to take advantage of Section 179, and our ability to provide them with fast, dependable funding will help them meet this deadline,” she said.
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