US Small Businesses Expect Revenue Growth, More Hiring in 2018
Access to financing hasn't been a problem for small businesses in the U.S., according to a Federal Reserve annual survey, which found 72% of respondents expecting revenue growth this year. Results of the online questionnaire were released on May 22 with responses from nearly 8,200 companies during the latter half of 2017.
On Tuesday, Reuters reported the survey's findings of increased profitability and confidence among the country's small businesses in 2017 as well as easier access to financing. In addition to revenue growth, more businesses also anticipate hiring more employees in 2018 compared to last year's survey. There was a slight decline in firms that wanted to expand.
"Fewer firms felt the need to seek outside financing, with only 40% looking for outside funding, down from 45% last year," Reuters noted. "Of the 64% of small businesses that reported trouble paying operating costs, buying inventory or making debt payments, two-thirds relied on an owner or investor's personal funds."
The survey concluded that the majority of struggling firms were those with less than $100,000 in revenue—these were the same firms that chose not to apply for a loan or other credit for fear of being turned down. However, financing was approved for 46% of firms that applied, up 6% from the previous survey.
-Andrew Michaels, editorial associate