Credit Card News

Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Small Business Owners Report Gloomy Economic Outlook

Small Business Owners Report Gloomy Economic Outlook

Add to Favorites:
Small Business Owners Report Gloomy Economic Outlook

The latest Capital One Spark Business Barometer Survey showed small business owners feeling less optimistic about the economy in general, and their businesses’ growth in particular, than they were earlier in 2015.

Exactly half (50%) of small business owners rated economic conditions in their area as fair or poor. Only 31% of small business owners said their finances had improved over the last year. In March 2015, 35% said finances were looking up. And whereas in March, 47% of small biz owners expected finances to improve over the next six months, that number fell to 38% in the latest survey.

In spite of flagging economic optimism, survey respondents still planned to increase their investments in a few areas: 34% said they’d spend money on solutions to improve efficiency, 20% said they’d expand their workforces, and 18% said they would shell out for new technology to develop client relations.

Women and Millennials take a brighter view

Two groups—women and Millennials—have room for optimism. Both demographics report increased sales over the last six months, and Millennials, of whom 57% saw a jump in sales during that time, lead every other demographic in sales by over 15 percentage points.

Women business owners are more optimistic than men about conditions with 56% of them saying that things are excellent or good versus 44% of men.

Millennials as a whole are more optimistic than men or women, with 71% of 18-34-year-olds calling local business conditions excellent or good. Forty-nine percent of Millennials rate their financial position as improved over last year, compared with 36% of Gen X-ers, 28% of Baby Boomers, and 23% of people ages 70 and older.

Challenges for the coming year

When asked where they struggle and what impedes growth, small business owners pointed to efficiency and expenses. Thirty-four percent find operating efficiently to be challenging, and 32% struggle with managing expenses for their businesses. Twenty-five percent find managing cash flow difficult, and 16% grapple with finding the right software, tech, and management tools.

One of those tech tools is adaptation of mobile and digital technology. While expanding mobile operations can increase productivity and sales, only 14% currently manage business finances via mobile. Twelve percent plan to up their investments in the e-commerce and digital spaces, and 6% will take advantage of digital payment systems like Apple Pay.

“Business owners appear to be slightly more cautious given recent market turbulence, pending regulations, and the upcoming election cycle,” said Capital One’s Buck Stinson. “At the same time, it’s encouraging to see business owners taking the steps needed to remain competitive – prioritizing and investing in solutions that drive efficiency and enable growth.”

The survey was conducted by phone and surveyed a national sample of 400 for-profit businesses with annual revenues of less than $10 million in July and August 2015.

Add to Favorites:

Related News:

Expectations Dictate Consumer Spending Habits
Expectations Dictate Consumer Spending Habits

By Dar Dowling, Posted: January 27, 2016

Everything from how much people will be saving or spending to how much debt they will be paying down can be traced to whether they believe we will have an economic upswing or downturn in the coming year. Continue reading
Small Business Owners Growing Their Businesses with Credit Cards
Small Business Owners Growing Their Businesses with Credit Cards

By Dar Dowling, Posted: February 24, 2016

Personal time is in short supply for owners of small businesses according to the new American Express OPEN Small Business Growth Pulse. Continue reading
U.S Finance Executives Give The U.S Economy A Thumbs Up
U.S Finance Executives Give The U.S Economy A Thumbs Up

By Dar Dowling, Posted: March 10, 2016

With the stock market ups and downs and concerns about oil production helping make the global economy challenging in some respects, U.S Finance executives are optimistic about the U.S economy, with their confidence levels holding at 65% ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit