BUSINESS LEADERS OUTLOOK SPRING/SUMMER 2016

Steady Optimism

To tap into the pulse of today's market, we surveyed nearly1,000 small businesses--asking questions about everything from growth expectations and underlying concerns to the adoption of new technologies. The overall results for 2016 are promising, and consistent with feedback we've received for the previous three years of conducting these surveys.

Despite the unpredictability of world events, domestic outlook is optimistic. While the desire to grow revenue continues to be the top challenge, companies are confident about their ability to do so and about the performance of their respective industries.

Small businesses do, however, express more skepticism when it comes to the larger market, increasing with the move from local to global economies.

For a closer look at the result of our survey, check out the most notable findings:

Small businesses show signs for growth.
69% are optimistic about their company's performance this year
5% are optimistic about their industry's performance this year

Sentiment is strong when it comes to the national and local economy, but small businesses waver on global outlook.

Global Economy:
27% Optimistic
37% Pessimistic

National Economy:
43% Optimistic
33% Pessimistic

Local Economy:
53% Optimistic
23% Pessimistic

What are the top five challenges facing today's small businesses?
48% said the ability to grow sales and revenue
33% said uncertainty of economic conditions
28% said taxes
26% said managing cash flow
21% said health-care costs

Despite these challenges, more than half expect profits and sales to increase:
57% expect profits to increase
59% expect sales to increase

Similar to previous years, this year 29% of small businesses expect capital expenditures to increase.

58% of businesses plan to obtain financing in 2016
52% of businesses planned to obtain financing in 2015

61% of small businesses plan to take out a loan of $100K or less this year. Here are the top factors they will consider when choosing a lender:
50% said the rates
32% said they trust the lender
14% said the ease of the application process
4% said technology

Companies considering loans of 100K or less plan to use those funds for a variety of reasons:
19% said to either buy or repair equipment
18% said to purchase inventory
15% said for expansions
15% said for software and technology

For 2016, hiring projections remain similar to the previous three years.
36% expect to increase employee compensation
31% expect to increase the number of part-time employees
25% expect to increase the number of full-time employees

The use of mobile technology to manage business needs is on the rise from last year; this is particularly true of larger revenue companies.
37% manage business finances/banking via mobile devices
31% make payments via mobile devices
23% accept credit card payments via mobile devices
21% of companies have a dedicated mobile website
12% of companies have an app for mobile devices

The majority of companies accept either chip-enabled EMV cards or NFC (contactless) payments, with nearly half accepting chip-enabled cards.

Among companies not currently using chip-enabled EMV technology, one in three plans to obtain card readers in the next three years.

Accepts EMV or NFC:
63% larger revenue companies
58% smaller revenue companies
59% overall

Accepts EMV cards:
50% larger revenue companies
47% smaller revenue companies
48% overall

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