Balboa Survey Shows 70% of Small Business Owners Expect Revenues to Rise
AUG 18, 2016 - 6:51 am
Balboa Capital released the results of its Q2/16 small business owner survey, which indicates that while fewer SBOs reported revenue increases, many of them are feeling optimistic about their companies.
The online survey, which was sent to a sample of small business owners nationwide in August 2016, reveals that 65% of SBOs saw revenues increase during Q2/16, an 11 point decrease from Q1 (76%). However, nearly seven in 10 SBOs expect moderate to significant revenue increases during the third quarter.
“The strong revenues that small business owners reported seeing during the first three months of the year have declined during the second quarter, but SBOs remain hopeful about the future of their companies, and of the national economy,” said Jake Dacillo, marketing director at Balboa Capital. “The slight downturn is somewhat consistent with what we are seeing among the small business owners we work with. They are continuing to invest in their companies, but are taking a more strategic and cautious approach.”
Key findings of Balboa Capital’s Q2 2016 survey:
65% of small business owners reported moderate to significant revenue increases during Q2/16, a decrease of 11 points (76%) from Q1/16.
68% of small business owners expect their revenues to increase during Q3/16.
63% of small business owners think the economy had higher growth in Q2/16.
When asked about their growth strategies for Q3, 41% of small business owners said they plan to invest in new equipment and/or technology, 39% plan to expand their operations and 37% will purchase inventory.
One in four small business owners said they plan to hire new employees in Q3/16.
Among small business owners who needed capital in Q2/16, the most popular options include small business loans (29%), equipment financing (20%) and credit lines (18%).
54% of small business owners worked with an alternative lender in Q2/16, an increase of 22 points over fiscal year 2015 (32%).
“It is reassuring to hear that small business revenues and optimism are staying on track as we enter the second half of the year,” Dacillo said. “These factors drive investing, job creation and borrowing, the latter of which Balboa Capital can help with. We developed online technology that enables small business owners to secure financing in a fast and hassle-free manner.”
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