An Update on Small Business Leaders Outlook 2018

Spotlight on Millennial Business Leaders (MBLs)

In this edition of the Small Business Leaders Outlook, we turn the focus to millennial-led small businesses. Research found that millennial leaders differ from general small business leaders by expressing greater optimism, higher growth expectations and using technology more to grow their businesses. In addition to recognizing millennial-led businesses, we surveyed 955 sole/ primary business decision-makers at businesses with revenues of $100K–$20MM. Their responses provide a snapshot of the current small business environment and the opinions of the men and women who operate in it.

Take a closer look at the results of our survey in these infographics that highlight the most notable findings.

Government Focus

Likely reflecting recent tax reform, fewer small businesses would select lowering taxes as a top priority for the government to focus on this year (down 7 points from last year, and 11 points from 2016). More than one-in-three small businesses (37%) expect the recent tax reform to have a positive impact on their company’s bottom line.

For the next 12 months, the government should focus on...

Reducing regulations.......................39%
Reducing federal deficit..................36% +4 change vs 2017
Improving infrastructure...............29% +6 change vs 2017

When it comes to additional government focus, millennial business leaders are more likely than other generations to want the government to focus on:

Protecting consumers’ interests..........36%
Comprehensive jobs plan..................22%
Cybersecurity legislation................23%
Expanding foreign trade..................19%

Optimistic

Continuing the trend in optimism, 2018 results show the outlook of small business leaders is even more positive.

National economy: 63%
Global economy: 51%

Our own economy..............84%
Our local econom7............70%

Within the next 12 months MBLs are more likely to expect…

An increase in profits: 82% Millennial-Led and 62% All Small Business Leaders
An increase in credit needs: 44% Millennial-Led and 25% All Small Business Leaders
An increase in capital expenditures: 45% Millennial-Led and 25% All Small Business Leaders

Segment Spotlight Millennial Business Leaders

They’re more likely to feel social media has had a positive impact on the business.

65% of Millennial-Led Businesses
38% of All Small Business Leaders

80% of millennial leaders are considering financing for a specific aspect of their business...

For marketing: 25% Millennial Leaders, 14% All Small Business Leaders, 10% Boomer Leaders
Purchasing Inventory: 26% Millennial Leaders, 16% All Small Business Leaders, 15% Boomer Leaders

The majority of small business leaders are always looking for new technology to help manage their business.

78% Millennials
63% All Small Business Leaders

Values

The majority of small business leaders say:

Being a successful small business owner is the American Dream - 73% change vs 2017

Work life balance is a top priority - 72% change vs 2017

I have always wanted to run my own business - 72% change vs 2017

Millennials are more likely to say that their company prioritizes vendors that give back to the community.

55% MBLs
31% All Small Business Leaders

Employment

Many small business leaders show concern with the limited supply of candidates with the right skill set.

42% MBLs
31% All Small Business Leaders

Many leaders expect their businesses to increase employee compensation.

61% Millennial Business Leaders
41% All Small Business Leaders

Many business leaders also expect their businesses to increase full-time employees.

63% MBLs
32% All Small Business Leaders

Challenges

What are the most common challenges facing today’s small businesses?

54% Ability to grow sales and revenue sixteen percent increase from 2017 +16 change vs 2017
28% Taxes
27% Uncertainty of economic conditions -7 change vs 2017

Millennial leaders are more likely than the average leader to cite the following as a top 3 business challenge:

Increase Productivity: 32% Millennial Business Leaders and 24% All Small Business Leaders
Manage Labor Costs: 28% Millennial Business Leaders and 17% All Small Business Leaders
Cybersecurity: 22% Millennial Business Leaders and 14% All Business Leaders

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