Page 18 - THE SOUTH CHINA BUSINESS JOURNAL
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C. TODAY
Small Business Survey Shows Record Optimism,
Despite Inflation Concerns
By U.S. Chamber of Commerce
Small business owners have record-
breaking optimism about the future
right now, according to new data in
the Q2 2023 MetLife and U.S. Chamber
Small Business Index.
The report comes amid the news in
June of the Federal Reserve pausing
interest rate hikes, and robust housing
starts data.
Both hiring plans and revenue
expectations reached record highs
for the Index this quarter, which
began in 2017. A record-high share of
small business owners (71%) expects
their revenue to increase in the next
year. In addition, a record-high share
anticipates hiring more staff in the next
year (47%, up from 37% last quarter).
Also, almost half (42%) of small
businesses say they plan to increase
investment in the next year, consistent
with last quarter (38%). Other recent
small business surveys echo this
optimism. In TD Banks’ 2023 Small
Business Survey released June 21, 80% of
small businesses voiced optimism about
how they will do in the next 12 months.
Higher Interest Rates Dampen
Growth Plans Fully half (50%) of U.S.
small businesses report that they have
delayed plans to grow their business in
response to higher interest rates.
In the face of higher rates, small businesses are turning to a diverse range of financing to grow. A majority of
small businesses still report relying on their personal savings (71%) and credit cards (67%) as the top sources
for funding their small businesses. A lesser amount—but still a majority (59%) of small businesses—seek
funding from local banks or credit unions.
Majorities of small business owners say it’s harder to borrow money for their business from banks because
they are tightening lines of credit (73%) and express concern about rising interest rates making it harder to pay
back current business loans (74%).
While rising rates have implications for the broader economy, nine in ten (91%) small business owners agree
that small businesses are the most vulnerable to rising interest rates (including 52% that strongly feel this way).
Inflation Remains Top Concern This is the sixth consecutive quarter where inflation tops the list of challenges
for small business owners. More than half (54%) say inflation is a top challenge followed by interest rates rising
(23%), supply chain issues (23%) and revenue (20%).
However, more small businesses (23%) indicate that rising interest rates are a top concern this quarter, after
this measure plateaued at about 15% throughout 2022. Since Q3 2021, when this was first asked, concerns
over rising interest rates have climbed 16 percentage points.
15 AMCHAM SOUTH CHINA
Small Business Survey Shows Record Optimism,
Despite Inflation Concerns
By U.S. Chamber of Commerce
Small business owners have record-
breaking optimism about the future
right now, according to new data in
the Q2 2023 MetLife and U.S. Chamber
Small Business Index.
The report comes amid the news in
June of the Federal Reserve pausing
interest rate hikes, and robust housing
starts data.
Both hiring plans and revenue
expectations reached record highs
for the Index this quarter, which
began in 2017. A record-high share of
small business owners (71%) expects
their revenue to increase in the next
year. In addition, a record-high share
anticipates hiring more staff in the next
year (47%, up from 37% last quarter).
Also, almost half (42%) of small
businesses say they plan to increase
investment in the next year, consistent
with last quarter (38%). Other recent
small business surveys echo this
optimism. In TD Banks’ 2023 Small
Business Survey released June 21, 80% of
small businesses voiced optimism about
how they will do in the next 12 months.
Higher Interest Rates Dampen
Growth Plans Fully half (50%) of U.S.
small businesses report that they have
delayed plans to grow their business in
response to higher interest rates.
In the face of higher rates, small businesses are turning to a diverse range of financing to grow. A majority of
small businesses still report relying on their personal savings (71%) and credit cards (67%) as the top sources
for funding their small businesses. A lesser amount—but still a majority (59%) of small businesses—seek
funding from local banks or credit unions.
Majorities of small business owners say it’s harder to borrow money for their business from banks because
they are tightening lines of credit (73%) and express concern about rising interest rates making it harder to pay
back current business loans (74%).
While rising rates have implications for the broader economy, nine in ten (91%) small business owners agree
that small businesses are the most vulnerable to rising interest rates (including 52% that strongly feel this way).
Inflation Remains Top Concern This is the sixth consecutive quarter where inflation tops the list of challenges
for small business owners. More than half (54%) say inflation is a top challenge followed by interest rates rising
(23%), supply chain issues (23%) and revenue (20%).
However, more small businesses (23%) indicate that rising interest rates are a top concern this quarter, after
this measure plateaued at about 15% throughout 2022. Since Q3 2021, when this was first asked, concerns
over rising interest rates have climbed 16 percentage points.
15 AMCHAM SOUTH CHINA
