First Citizens Study Shows U.S. Small Business Owners Have Rising Confidence in the Economy
23 September 2016 - 4:30AM
First Citizens Bank has released the results of its second annual
Small Business Forecast survey, uncovering a strong entrepreneurial
spirit and optimism toward economic conditions among U.S. small
business owners. Overall, small business owners are feeling steady
and consistent with their business and future success even when
considering recent local and global events. Many believe the
upcoming year will be their most successful yet.
According to those surveyed, 71 percent of respondents reported
optimism about future economic conditions in the next three years,
a seven percent increase from 2015. Of the states surveyed, South
Carolina reported the most significant increase in optimism about
the economy, with an 18 percent increase from 2015.
Thirty-six percent of baby boomer small business owners
indicated that the presidential election was one of the top three
factors affecting the growth of their business in the next two
years.
Kate Stackhouse, manager of Sales Effectiveness at First
Citizens Bank, acknowledges the perseverance of small business
owners saying, “The results indicate what we’ve long suspected
about small business owners in the U.S. They are resilient, driven
and are able to realize their dreams despite challenges. It’s
critical that we support this important group.”
Other findings included:
- Sixty-nine percent of small business owners considered their
business successful in 2015, including 20 percent who considered it
very successful. North Carolina and California had the
highest percentage of respondents who indicated they had a
successful or very successful 2015.
- Social media (60 percent) is now on a par with word of mouth
(60 percent) as the most popular resource to learn about small
business trends. The percentage of respondents who use social media
to learn about small business trends increased significantly from
2015 not only in general but also across all demographic
segments.
- Among the top five motivators to start a business, 87 percent
of small business owners started their business to realize their
dreams, a 13 percent increase from 2015.
- More than three quarters of small business owners plan to grow
their business in the next six to 12 months.
- The percentage of millennial respondents who considered their
business successful dropped 13 percent from the previous year,
while Baby Boomer and Gen-X respondents saw a double-digit
increase.
- Sixty-seven percent of small business owners agreed the state
where their business is located is a great place to start a small
business, with South Carolina reporting the highest percentage (77
percent).
- Small business owners in Florida had the highest percentage of
respondents (78 percent) who were optimistic or very optimistic
about the economy in the next two to three years, closely followed
by South Carolina (77 percent).
The First Citizens Bank Small Business Forecast is conducted
annually to assess the motivations, sentiment and success of U.S.
small business owners. For additional business insights and tools,
visit firstcitizens.com/smallbizstudy.
About the StudyThe second annual First Citizens
Bank Small Business Forecast was conducted online among 250 small
businesses in North Carolina, South Carolina, Florida and
California through SurveyMonkey and ResearchNow via an online poll
in May 2016. To qualify for the survey, the owners had to employ
fewer than 500 people. Among those surveyed, 82 percent of
respondents reported annual revenue less than $1 million.
Generational demographics were adopted from the Pew Research
Center. For additional details about the research methods
used, please visit firstcitizens.com/smallbizstudy.
About First Citizens BankFounded in 1898 and
headquartered in Raleigh, N.C., First Citizens Bank is the largest
family-controlled bank in the U.S., with offices in 20 states.
Drawing from over a century of experience serving the needs of
business customers, First Citizens focuses on developing long-term
relationships and offers a comprehensive array of products and
services to help small businesses manage their finances and grow.
First Citizens Bank is a major subsidiary of First Citizens
BancShares Inc. (Nasdaq:FCNCA), which has over $32 billion in
assets. For more information, call toll free 1.866.FCB 4BIZ
(1.866.322.4249) or visit firstcitizens.com/business. First
Citizens Bank. Forever First®.
Contact:
Barbara Thompson
First Citizens Bank
919.716.2716
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