Small business owners have been generally optimistic throughout 2018 so far, and that positivity appears to be sticking around. According to a recent survey from WalletHub, seven out of ten owners find the present to be a good time for growth.
The company’s 2018 Small Business Owner Survey also found that over a third (38 percent) of small businesses find access to a talented workforce to be the most important factor for success. Other factors business owners cited include limited regulation (25 percent), low taxes (21 percent), easy access to credit (13 percent), and government incentives (3 percent).
Despite owners finding the present to be an ideal time for growth, only 2 percent of those polled say they’ll use money saved from Trump’s tax reform for hiring. For comparison, 7 percent say they will use it for employee compensation, 23 percent for adding to cash reserves, 28 percent for executive and investor bonuses, and 40 percent for business development.
Regarding compensation, a different report from Paychex indicates that small business employees saw the strongest rate of wage growth in April than any other time in the past two years with hourly earnings increasing at an annual rate of 3.25 percent.
The WalletHub survey also revealed these interesting findings from small business owners:
- 89 percent of business owners polled indicated that National Small Business Week, which took place from April 29 through May 5, does not actually help their business.
- Nearly five in ten business owners say an employee must be employed for at least a year before becoming an authorized user on the business credit card.
- Nearly nine in ten small business owners think business credit card rewards should be the same as or better than personal credit card rewards.
- 90 percent of owners think user protection on business credit cards should be at least as good as those on personal cards.
- 63 percent of business owners think they pay too much in credit card processing fees.
- Nearly three in ten business owners say low fees are the most important feature of a business credit card. 18 percent said expense management tools, while 14 percent said good customer service, 11 percent said ongoing rewards, 10 percent said low regular APR, 9 percent said no personal guarantee, 6 percent said 0% introductory APR, and 3 percent said a sign-up bonus is the most important feature.
WalletHub released additional research on the best cities across the United States to start a small business. They analyzed 182 cities, including the 150 most populated in the country, as well as at least two of the most populated cities in each state. Factors analyzed include environment, access to resources, and business costs. Based on its methodology, the top ten cities include (in order from 1 to 10): Oklahoma City, Austin, Sioux Falls, Missoula, Durham, Bismarck, Cheyenne, Billings, Charlotte, and Raleigh.
The views expressed herein are those of Chris Crum, as of the date above and are subject to change. This publication is for informational purposes only and should not be construed as a recommendation for any specific insurance product or service. Information has been collected from sources believed to be reliable, but has not been verified for accuracy. These views and opinions do not necessarily represent those of Bryn Mawr Trust, its directors, officers, affiliates, and/or any/all of the contributors to this site. It does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not endorse any third-party companies, products, or services described herein and assume no liability for your use of this information.