SBOs Optimistic About U.S. Economy, Concerned About Driving Profits
APR 5, 2017 - 6:18 am
According to a study by Balboa Capital, small business owners are concerned about their ability to drive profits and secure growth capital, but are otherwise feeling optimistic about the future of their companies and the U.S. economy.
“Each quarter, we want to gauge the confidence level of small business owners and find out what their economic expectations are, plus identify any challenges they are facing,” said Jake Dacillo, marketing director at Balboa Capital. “While the results of our latest survey indicate business optimism is heading in the right direction, many SBOs think it will be difficult to increase profits and obtain capital for their companies.”
Although these concerns were reported, Dacillo said the latest Balboa Capital survey results showed gains from the previous survey that the company conducted in December.
“Seventy percent of SBOs think the economy will experience higher growth in Q2, up from 60%. Additionally, 50% of SBOs plan to hire new employees, up from 20%,” he said.
Key findings of the survey include:
46% of SBOs think it will be difficult to obtain financing in Q2/17.
Among SBOs who anticipate needing growth capital in Q2/17, the most popular financing options are equipment financing (45%), credit lines (42%) and small business loans (32%).
Seven in 10 SBOs expect the economy to experience higher growth in Q2/17.
One in five SBOs expect their company’s revenues to “increase significantly” in Q2/17.
When asked what will be the biggest challenge in 2017, 50% of SBOs said increasing profit, 19% said securing capital and 18% said growing revenues.
50% of SBOs plan to hire more employees in Q2/17.
“At Balboa Capital, we understand the issues and challenges that are impacting SBOs, particularly those that deal with business financing,” Dacillo said. “We are dedicated to helping SBOs who have plans for investment in Q2. Our user-friendly online tools enable them to get flexible equipment financing and business loan solutions quickly and easily.”
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