Balboa Capital Survey: Small Business Owners Had Successful Q1 & Plan to Invest Their Tax Returns
Tuesday, April 19, 2016
Balboa Capital has announced the results of its "tax time" survey, which was conducted to gauge small business owners' perceptions of the economy and to find out what they intend to do with their tax refunds. The survey reveals that nearly eight in 10 small business owners saw their revenues increase in Q1 2016. Additionally, a sizeable percentage of small business owners who received tax refunds plan to invest their returns back into their businesses. The survey was sent to more than 300,000 small business owners nationwide in April 2016.
"Small business owners had a strong first quarter and are anticipating a hike in economic growth during the first half of 2016, and this is leading to increased confidence and business investing," said Jake Dacillo, director of marketing, Balboa Capital. "Respondents to our survey who received tax refunds indicate they will use their returns to purchase equipment and inventory, hire more employees and expand their operations."
Dacillo went on to comment about Balboa Capital's successful start to 2016.
"Our company is seeing a significant increase in business in each of the channels we serve and we attribute this to business owners entering the year with stronger economic sentiment," Dacillo said.
Key findings of Balboa Capital's 2016 "tax time" survey:
"Business owners were also surveyed on the types of financing they secured in Q1 and small business loans and equipment financing top the list," Dacillo said.
- Seventy-six percent of small business owners reported moderate to significant revenue increases in Q1.
- Seventy-nine percent of small business owners expect to see growth in the U.S. economy during the first half of 2016.
- Among small business owners who completed their taxes in 2016, 14 percent received a refund and 56 percent did not receive a refund.
- Small business owners who received tax refunds this year intend to use their returns for either equipment/technology acquisition, debt consolidation, expansion initiatives and/or increased employee hiring.
- Seventy-five percent of small business owners used the Section 179 tax deduction to deduct the full or partial price of business equipment that was purchased and put into place in 2015.
Key findings of this latest survey are featured on the Balboa Capital Index, which measures the confidence and economic perceptions of small business owners in the United States.