Survey: Small Business Trends for 2023
What's next for business owners in the U.S.? Don't be discouraged by concerns about inflation, high interest rates, and economic instability. Entrepreneurs have proven to be tough and resilient. Most see a bright future for their businesses as they continue to grow.
It’s official: 91% of entrepreneurs agree community is the key to business success. And 92% believe there's a growing need for small business community support. Where are small business owners currently going for their support? More than half, 59%, belong to a local business community, with 17% being a part of a national group. Sadly, 24% do not belong to a small business community. They are missing out on the essential support from experts and peers who can help them navigate the challenges of entrepreneurship.
How Is the Economy Impacting Small Business Owners?
These are tough economic times, but don't let the naysayers fool you — small business owners are optimistic. Our survey reveals their confidence in their businesses and the economy, with 65% reporting that their businesses are better off now than a year ago. Dwindling numbers say it’s the same (21%) and worse (15%).
And when it comes to the economy, small biz owners have faith, with 49% seeing it as good for small businesses, 36% saying it’s average, and a much smaller number, 15%, viewing it as poor.
But while small business owners are optimistic overall, the economy raises valid concerns and pain points. Top struggles cited by entrepreneurs include inflation (50%), supply chain disruptions (25%), retaining employees (14%), and difficulty maintaining finances (11%).
When asked how small businesses aim to boost growth and stability despite the topsy-turvy economy, 74% say they plan to raise product and service prices.
Most Entrepreneurs Forecast Growth for 2023
More small business owners report success this year, with 65% saying their business is performing better than last year. And the future looks bright: 52% of entrepreneurs anticipate seeing a rise in new businesses in their community over the next year, with 33% expecting the number of businesses to stay the same. A pessimistic 15% say they anticipate the number of businesses to fall.
Small Biz Owners Bet on Millennials and Women for Future Growth
Entrepreneurs see a bright future for a diverse group of business owners. When asked about growing business trends in their communities, they revealed that Millennial-owned businesses are growing most rapidly (45%). Women-owned businesses are also on the rise (39%), followed by Gen Z-owned businesses (33%) and Black-owned businesses (29%). Minority-owned businesses are trending up (24%), and Gen X-owned businesses are performing well (18%) too. It seems like a win-win situation for all making this an exciting time for small business owners from all backgrounds.
Small Biz Owners Look to Hire Despite Economic Challenges
According to our report, 59% of small businesses plan to increase their number of full-time employees — fantastic news for job seekers and the economy. Additionally, 28% of businesses plan to maintain their current staff levels, while only 12% plan to decrease their workforce.