Survey: Fewer small business owners view economic conditions as barrier to growth
By National Underwriter
By Warren S. Hersch
The percentage of small business owners who believe that economic conditions are the biggest barrier to economic growth has declined since 2011, according to a new report.
This finding was released today in the fall 2012 American Express OPEN Small Business Monitor, which surveyed 839 small business owners and managers of companies with fewer than 100 employees. The survey includes a Small Business Owner Success Index, the value of which is based on business growth and business owners’ approach to pursing success in the business.
The report reveals that only 20 percent of small business owners believe that economic conditions are the biggest barrier to growth, as compared to 23 percent in the fall of 2011. Additionally fewer small businesses have cash flow concerns (53 percent versus 58 percent in the spring). And fewer are stressed out by the economy (59 percent versus 64 percent in the spring).
The report finds differences among “high achievers” and other small business owners surveyed. Among them:
- High achievers take more risks. More than two-thirds of have increased their appetite for risk compared to one year ago (67 percent versus 35 percent of the total population surveyed).
- High achievers make growth a priority. A majority of high achievers say they are planning to grow their business over the next six months (93 percent, as compared to 69 percent of the total group surveyed). And more than half (51 percent) have growth as their top priority (versus 31 percent of the total survey group).
- They invest in their business. More than three-quarters (78 percent) are planning to make capital investments (versus 49 percent of the total survey group.)
- They provide incentives to customers to get repeat business. More than 8 in 10 (84 percent) place a heightened focus on better servicing customers to set their business part from competitors (versus 78 percent overall).
- Additionally, 40 percent offer loyalty awards (versus 22 percent) overall. And 41 percent offer differentiated products and services (versus 23% overall).
- They leverage social media. A large majority of high-achieving small business owners use social media (70 percent versus 49 percent overall). And more than three-quarters (79 percent) use social media to attract new customers (versus 57 percent overall).