RALEIGH – The vast majority of small business owners apparently aren’t paying attention to fears about a recession or the ongoing trade ware with China. Rather, a new survey finds that 74 percent of companies are planning to expand over the next year. And that’s a 12 percent increase over 2018 when the economy was a lot more calm.
In fact, 43 percent of firms surveyed plan to seek outside financing to help drive growth. That’s more than 10 percent higher than last year.
So reports First Citizens Bank in its fifth annual Small Business Forecast, which is conducted in North Carolina, California, Wisconsin, Florida and South Carolina.
Most excited are millennials with 81 percent of these business owners planning to invest in growth.
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Gen Xers are right behind at 71 percent with baby boomers the most conservative but 66 percent banking on growth.
The optimism comes despite expectations in a Duke University CFO survey that a recession will hit in 2020. And N.C. State University economist Dr. Mike Walden recently wrote about recession worries. But US unemployment remains at record lows with North Carolina hovering at around 4 percent. And high-tech employees remain in high demand across North Carolina – 14 percent more year-over-year. The US stock market is at record highs.
And small business owners are choosing to embrace the positive.
North Carolina, in fact ranks second in growing optimism compared to 2018 with 67 percent of business owners who are positive about the state of the economy. The Tar Heel state’s positive outlook ranks just behind Florida at 73 percent. Nationally, 68 percent of those surveyed are optimistic.
“Our report shows promising numbers for the success of small business owners and for our overall economy in 2019,” said Kate Stackhouse, director of sales strategy at First Citizens Bank, about the survey.
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“Year after year, the vision and accomplishments of these business owners have an immense impact on the health of our economy. We strive to equip business owners with the insights they’ll need to help them follow their passions and navigate shifting market trends to achieve an even stronger business performance in 2020.”
So how do these owners plan to drive growth?
- Increase current customer satisfaction and loyalty
- Identifying new customers
- Creating new products and businesses
- Using social influencers for product promotions
