Six in Ten Small Business Owners in the U.S. Are Optimistic About Their Finances in 2017

The majority of adults who own a small business in the U.S. (defined here as owning a business that employs from 1 to 500 employees) describe having positive financial expectations when thinking about their business in the year ahead, with 60% saying that they expect business to improve, according to a recent online study conducted by Ipsos on behalf of New York Life. On the other hand, another one in five (22%) expect business to stay the same, while slightly smaller proportions (19%) believe their business’ financial situation will worsen.

• Younger business owners (63%, under 55), those who are not married (66%), and those who have been operating their business for less than a year (71%) are among the most likely to report having an optimistic attitude when asked about their financial expectations for 2017.

Technology is predicted as having the most positive impact on small businesses, with three quarters (75%) of small business owners believing that this area will have a constructive effect on their business in the year ahead. The majority are also confident that the new political landscape (57%), the employment market/ talent pool (56%), interest rates (54%), and health insurance (53%) will all have a positive impact on their business in 2017. Looking at the demographic differences that emerge here, it is men, adults under the age of 35, higher income earners ($50,000 or more), those from the Northeast, those with children living at home, those with a college degree, those who have owned their business for 10 years or less, and those who employ at least 51 employees that stand out as being significantly more likely to see all of these areas as having a positive impact on their business in 2017.

Business Plans for the New Year

When thinking about different business strategies, two thirds of small business owners say that they plan to both better incorporate mobile technologies in their business (66%) and also network more with business owners and/ or professionals (64%) in 2017. Just over six in ten also say that they plan to grow their company by doing things such as opening another location, increasing revenues, expanding capabilities, etc. (62%), while seeking additional capital (55%) and hiring more employees (52%) is also top of mind for the majority of small business owners.

• Such strategies are much more likely to be top of mind for men, adults between the ages of 18-34, higher income earners, parents, those with a college degree, those who have owned their business for 1-6 years, and those who have at least 51 employees working for them.

Furthermore, over half of those surveyed plan to seek or utilise assistance from a financial professional for their business needs (55%) as part of their business plan for 2017. Among those seeking professional assistance, working with a current partner is more appealing versus seeking out a new financial professional or partner (56% vs. 44%, respectively).

Other business strategies such as planning to improve their employee benefits package (49%) or taking out a loan (46%) are not as prevalent, although nearly half nevertheless agree that they are considering these when thinking about their outlook for 2017.

When it comes to educating themselves to better protect their business, nearly eight in ten say that they would be interested in learning more about ways to minimise their taxes (79%), while another seven in ten would be interested in learning to build an emergency fund/ reserve (71%). Interest in learning more about these things is especially pronounced when looking at younger business owners (ages of 18-34), the more affluent, those with a college degree, those who have been running their business for less than 10 years, and those who employ at least 51 employees.