Balboa Capital Survey Reports Moderate to Significant Revenue Increases in Small Businesses in 2015
Monday, February 8, 2016
Balboa Capital has released the results of its winter small business survey. The results indicate that a sizable number of small business owners (SBOs) had a successful 2015 and think the U.S. economy met expectations. The survey, which was sent to a sample of SBOs in January 2016, reveals that 55 percent of SBOs had moderate to significant revenue increases last year and 45 percent of SBOs think our nation's economy finished the year with moderate to higher growth.
"We are hearing positive news from small business owners about their revenues and in their perception of the U.S. economy," said Jake Dacillo, marketing director, Balboa Capital. "These are great signs given the significant impact that our nation's 28 million small businesses have on economic growth and job creation, among others."
Dacillo also commented on the effects that the stock market might have on small business owners.
"Many SBOs are wondering if the recent fluctuations in the global and domestic stock markets will affect their companies," Dacillo said. "Given that the majority of small businesses are in the service industry, they are less sensitive to the effects of stock market turbulence. However, companies in sectors such as manufacturing, consumer goods, technology and industrial goods might see increased costs for materials and imported products, to name just a few."
Key findings of Balboa Capital's winter survey:
"The combination of increased revenues and increased confidence leads to more investing by small business owners," Dacillo said. "Balboa Capital is here to empower small businesses, particularly those with limited capital and time, to obtain the fast, hassle-free funding they need to grow and succeed in 2016."
- Fifty-five percent of small business owners reported moderate to significant revenue increases in 2015 — an increase of eight points (47 percent) from Q3 revenue reports.
- Forty-five percent of small business owners think the economy had higher growth in 2015.
- Small business owners are turning to alternative lenders for financing solutions that offer flexible terms and greater convenience. Thirty-two percent of small business owners worked with an alternative lender in 2015 — a sizeable increase over Q3 (16 percent).
- Among small business owners who needed capital in 2015, the most popular options included credit lines (18 percent), equipment leasing (17 percent) and small business loans (15 percent).
- The primary business goals of small business owners for the start of 2016 include budget planning/goal forecasting (63 percent), company website updates (15 percent) and early preparation of business tax documents (8 percent).
The results of Balboa Capital's winter small business survey are included in the Balboa Capital Index, which measures optimism and trends of small businesses in all U.S. markets.