Visa just released their "Small Business Spend Insights" study that reports that nearly half of the small business owners surveyed expect an increase in profit, revenue, and cash flow over the next six months while expressing concerns about rising energy, rent, and mortgage costs.
In terms of specific breakdowns, almost half (44%) of these small business owners expect an increase in revenues over the next six months, with only 13% expecting a decrease. 40% of these owners expect an increase in profits over the next six months, while only 22% anticipate lower profits for this period. In terms of borrowing, only 19% expect to borrow money to enhance cash flow over the next six months.
This optimism is muted by recognition of rising costs. Energy in particular is a big issue, with 72% of the survey participants expecting energy increases over the next six moths. Additionally, 23% of small business owners are projecting rent and mortgage cost increases in the next six months.
Attracting new customers is still on the hot list for some, with 23% of small business owners concerned about adding to their customer base.
These attitudes are impacting cash outlays for small business owners, with 58% expecting to slow large capital investments and 41% slowing small capital investments. Visa assumes that these adjustments in slowing down capital outlays will allow small businesses to fund investments in their most pressing business challenges such as finding new customers.
Shivonne Byrne, Innuity CMO
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