SMBs Optimistic About 2015
Small businesses have an optimistic outlook on the year ahead, as new research from financing provider Kabbage reveals that 95 percent of small business owners surveyed expect to grow their revenue in 2015.
In fact, the research indicates that half of all surveyed businesses expect to grow by more than 20 percent this year. Despite this optimism, however, half of the business owners also cited cash flow management and access to capital as their primary concerns for 2015.
It is also important to note that the research found that 70 percent of survey respondents plan to expand their current product offerings this year, while 52 percent intend to invest more in marketing. Additionally, to facilitate marketing growth, more than 50 percent of respondents say they will start using social media marketing in 2015.
When it comes to seeding their growth, the study found that access to capital is a concern for 48 percent of businesses, while 53 percent cite ongoing cash flow management as their top concern. Moreover, most businesses will turn to bootstrapping and other alternative funding providers to grow their business in 2015, with only 14 percent of respondents planning to go to a traditional bank.
“Small businesses employ 57 percent of the U.S. workforce, so the fact that the majority of them are planning for such a robust 2015 is a strong positive signal for the overall economy,” said Rob Frohwein, co-founder and CEO of Kabbage. “We are proud to be the financial backbone behind tens of thousands of businesses as they invest to drive growth in 2015 through hiring, capital investment, new facilities, and marketing and product expansion.”
In addition to growth in 2015, the study looked at the sacrifices of small business owners, revealing that 52 percent work more than 60 hours per week and 30 percent expect to work even more this year. In fact, the study found that the majority of respondents report postponing vacations, using personal savings and cutting personal expenses to grow their business. That said, many business owners are aiming to achieve a better balance in 2015, with 40 percent saying they expect to make fewer sacrifices this year.