TD Bank’s small business survey showed that small businesses in the United States expect a large increase in revenue this year compared with 2018 and optimism overall was greater than the previous year.
Most of the business owners, however, stated that the tax reform actually did not have a positive effect on their business as 64% said it had no effect whatsoever. That said, 39 percent said they plan to expand production.
The survey showed positive ways that banks can benefit from their initiatives. About 43 percent of those surveyed stated that they would be seeking future credit, much of which is due to their plan to expand their product sets.
Secondly, small business owners continue to feel a tie to their local community. About 62 percent of those surveyed mentioned that they like to use banks with local locations within the community. Additionally, the survey shows high numbers of those that like being involved in charity events that effect the local community. The data shows a strong tie to local lenders despite opportunities from electronic only finance resources.
Twice as many people under 55 stated that a desire to invest and serve their local community as a reason for owning a small business. This is consistent with a younger work force more tied with environmental concerns and an occupation with purpose beyond financial gain.
Here are the findings by the numbers:
- External pressures may impact business with SBOs reporting that top challenges are the health of the national economy (37%), tax law changes (24%), inflation (21%) and finding qualified workers (18%).
- 64% stated that Tax Reform is not impacting their business’ bottom line, which aligns with 2018’s findings when nearly half of respondents stated the Tax Cuts and Jobs Act would not aid their business.
- SBOs feel committed to and supportive of their communities by banking with locations in their area (62%), living near their business location (40%), participating in local activities such as sidewalk sales, charity events and volunteer work (32%) and hiring local employees (25%).
- When asked why they started their business, 60% said to be their own boss, while 41% said having a passion for their business’ service offering.
The survey focused on businesses with under $5 million in revenue.
- PPP Delivers $140B in 2021 as Biden Prioritizes ‘Mom and Pop’ Businesses
- First National Strikes Merger Agreement with The Bank of Fincastle
- US Banks Resilient Despite Pandemic
- Bank of Hawaii Launches ‘Branch of Tomorrow’ Premises
- Banking on Diversity initiative launched to target minority businesses