Balboa Capital, a direct lender that specializes in small business loans and equipment financing, announced the results of its Q2 2021 Small Business Owner Survey, which was conducted to gauge small business owner confidence, measure the strength of the United States economy and gain an understanding of recent small business performance. The survey found that half of small businesses saw increased revenues in Q1 2021, and 7 in 10 small business owners (SBOs) expect their companies to perform better in 2021. Additionally, 59 percent of SBOs think the nation’s economy will experience moderate to strong growth this year. Balboa Capital’s survey was sent to a sample of SBOs in a wide variety of industries in April 2021.

“The fog of uncertainty that has lingered over Main Street USA appears to be lifting,” said Kevin Umeda, Manager of Sales Planning and Coordination at Balboa Capital. “The results of our latest survey reveal that small business owners are seeing increased revenues in 2021, and they are feeling confident about the nation’s economy. Seventy-one percent of SBOs we surveyed expect their companies to perform better in 2021, and this has translated into plans for long-term business growth. More and more SBOs are eager to invest in capital equipment, hire new employees, and purchase more inventory.”

Key takeaways from Balboa Capital’s Q2 2021 Small Business Owner Survey:

• 50 percent of SBOs reported increased revenues in Q1, compared to 17 percent in the previous quarter.
• 28 percent of SBOs reported no change in revenues in Q1, compared to 30 percent in the previous quarter.
• 22 percent of SBOs reported decreased revenues in Q1, compared to 53 percent in the previous quarter.
• 71 percent of SBOs think their companies will perform better in 2021 than they did in 2020.
• When asked how they think the United States economy will perform in 2021, 20 percent of SBOs said “strong growth,” 39 percent said, “moderate growth,” and 24 percent said “flat/no change.”
• 73 percent of SBOs plan to increase spending and/or invest in their companies in 2021.
• 8 in 10 SBOs have incurred costs relating to coronavirus safety measures.
• 35 percent of SBOs raised their prices to offset the costs relating to coronavirus safety measures.
• 52 percent of SBOs expect to hire new employees in Q2, up from 25 percent in the previous quarter.
• The impact of COVID-19 on sales and productivity is the number-one concern of SBOs in 2021, followed by business tax rates, consumer confidence/spending, operating costs/expenses, and stock market performance.