Monday, October 22, 2018
Continued growth and a strong economy have small business optimism reaching post-recession highs, particularly among male business owners, according to Capital One's (NYSE: COF) latest Small Business Growth Index, a biannual survey of 500 small business owners (SBOs) gauging sentiment related to the economy, business conditions and plans for growth. The survey found 67 percent of business owners overall think business conditions in their area are good or excellent, up from 60 percent a year ago.
"We've seen small business optimism continue to rise as business owners benefit from a strong economy," said Jenn Flynn, head of Small Business Bank at Capital One. "At the same time, small business owners still have concerns about taxes, tariffs and other areas of economic policy. As business leaders balance opportunity with risk, we remain committed to offering solutions designed to empower small businesses and fuel growth."
Following are key themes uncovered by the Fall 2018 Small Business Growth Index:
Business growth and strong economic conditions have driven small business optimism to its highest point in survey history, with men leading optimism for the first time.
Most business owners feel the current administration has been positive for small business – but healthcare costs, taxes and trade policy are top concerns.
More businesses plan to hire, but are challenged by skills gaps and competition from bigger businesses.
Business owners are preparing for the impact of Tax Cuts and Jobs Act, with fewer business owners expecting to pay less in taxes than earlier this year.
"Concerns about hiring and tax reform are not only felt by leaders of large companies, but small businesses as well. The Small Business Growth Index tells us that business owners are tackling challenges like hiring and retention with fewer resources than larger companies," said Brad Jiulianti, head of small business card at Capital One. "Despite these challenges, we are encouraged by the continued optimism among business owners, especially given the major role they play in our nation's economy."
Survey Methodology
Capital One's Fall 2018 Small Business Growth Index Survey was conducted by the market research and business intelligence firm Engine (formerly ORC International). For this telephone study, Engine interviewed a national sample of 501 for-profit small businesses in the U.S. Small businesses are defined as those with a total annual revenue of less than $10 million. Interviews were conducted from August 17 – September 13, 2018. One respondent per business was interviewed. The margin of error is +/- 4.38 percentage points at a 95% confidence level.
About Capital One Spark Business
Capital One® offers a broad spectrum of financial products and services to consumers, small businesses, and commercial clients. Spark Business® from Capital One offers a diverse suite of financial products, tools and services designed specifically for small businesses, including credit cards with unlimited rewards, banking products and services, in addition to retirement plans. Today, Spark Business works to address the unique needs of millions of business owners across the U.S., so they can focus on what they are most passionate about – running and growing their business.