As the small business world continues to navigate rapid digital transformation and related shifts in customer expectations, veteran-owned and -led businesses are cautiously optimistic about their business growth over the next 12 months, according to the results of a new survey by TD Bank on the occasion National Veterans Small Business Week.
More than 70% of veteran-owned and -led businesses list economic conditions, like inflation and high interest rates, as their primary concern related to their business growth. Additional concerns include attracting customers (48%) and competition from other businesses (41%).
The economic environment continues to pose challenges for veteran-owned and -led businesses’ performance, with just one-third (34%) expecting improved performance over the next 12 months. Instead, nearly half (49%) expect to merely meet their goals in the same timeframe. Notably, only 29% of veteran-owned and -led businesses indicate plans to increase their staffing levels, showing a hesitancy to expand operations amid uncertainty.
Ready, Aim, Grow!
Despite a cautious outlook for service expansion and hiring plans, veteran-owned and -led businesses are eager to pursue areas of opportunity, including:
- Customer Acquisition: While veteran-owned and -led businesses continue to grapple with the effects of economic fluctuations, 77% note new customers as a key opportunity for their business.
- Access to Capital and Talent: As the economy continues to stabilize with a potential ‘soft landing’ on the horizon, just one fifth of veteran-owned and -led businesses feel disadvantaged when considering access to capital (21%) or professional networks (21%).
- Cost Savings/Efficiencies Initiatives: Veteran-owned and -led businesses continue to prioritize financial stability as they navigate market volatility, with more than half (52%) citing cost efficiency initiatives as an opportunity for their company in the next twelve months.
Additionally, banking innovation is particularly important, as the majority of veteran-owned and -led businesses (84%) believe their primary bank offers cutting-edge features and products. When veteran-owned and -led businesses consider choosing a bank partner, more than two-thirds (68%) prioritize both low banking fees and online banking features as top determining factors.
“Overall, the survey findings reveal veterans’ positive sentiment about the future of small businesses, including opportunities around new technologies and customer growth,” Andy Bregenzer, co-head of commercial banking at TD Bank, said. “There are many resources designed to support veterans’ financial wellbeing, and banks are here to provide guidance and expert recommendations on the resources and solutions that will help veterans successfully pursue their business goals and achieve their aspirations.”
Those surveyed show a high level of satisfaction when it comes to their banking relationships. Notably, an overwhelming 96% report their primary bank effectively meets their business needs or goes beyond to support them. More than half of veteran-owned and -led businesses (55%) maintain only one banking relationship, and nearly two thirds (62%) consider their banking service to be excellent.
