Balboa Capital announced the results of its Q3 2016 Small Business Owner Survey, which was conducted to gain a better understanding of recent small business performance and small business owner expectations for the final weeks of 2016. The survey reveals that 60% of small business owners saw increased revenues in Q3, a 5 point decrease from Q2 (65%). However, SBOs are ending the year with confidence; 6 in 10 are expecting higher growth in Q4. The survey was sent to a sample of small business owners nationwide in November 2016.
“Our latest survey results show a slight decrease in the number of small business owners who experienced growth during the third quarter, but overall they are feeling confident about their business’ conditions and the nation’s economy as 2016 comes to a close,” said Jake Dacillo, Marketing Director at Balboa Capital. “Close to 60% of SBOs we surveyed expect to end Q4 with higher revenues, and this confidence is influencing their investment decisions. Capital equipment acquisition, purchasing inventory and expansion initiatives top the list of year-end investment goals among SBOs.” Mr. Dacillo said it is not uncommon to see an increased demand for financing and loan products during the final weeks of the year. “Many SBOs are looking to secure capital for business growth as we head toward the New Year, and we offer solutions that are fast, flexible and hassle-free.”
Key findings of Balboa Capital’s Q3 2016 Small Business Owner Survey:
- 60% of small business owners reported moderate to significant revenue increases during Q3 – a decrease of 5 points (65%) from Q2
- 58% of small business owners expect their revenues to increase during Q4; 16% expect their revenues to increase significantly
- 52% of small business owners think the economy had higher growth in Q3, a decrease of 11 points (63%) from Q2
- 60% of small business owners think the economy will experience higher growth in Q4
- When asked about their growth strategies for Q4, 40% of small business owners said they plan to invest in new equipment and/or technology, 27% will purchase inventory, 25% and plan to expand their operations
- One in five small business owners plan to hire new employees during Q4
- Among small business owners who needed growth capital in Q3, the most popular options include equipment financing (39%), credit lines (28%) and small business loans (19%)
- One in three small business owners worked with an online lender in Q3
The results of this latest survey are featured on the Balboa Capital Index, which measures the confidence and economic perceptions of small business owners in the US