How do you know the economy is healthy and conducive for doing business?
Top Issues for Small Businesses
According to a recent survey by business payments company Bill.com, Consumer Confidence is the number one factor SMBs cite as the key financial indicator impacting their business. Nearly half (46%) of small businesses say Consumer Confidence has the most impact in their business.
Other economic factors small and medium-sized businesses commonly cite as impacting their business the most include Tariffs, Interest Rates, and Tax Policies.
“What doesn’t change is the profound effect these factors can have on businesses’ financial health,” writes Tanya Roberts, VP of Corporate Marketing at Bill.com, in a blog post announcing the survey findings. “They [the economic factors] impact cash flow – which is always a key determinant of whether small and medium-sized businesses can pay and get paid on time.”
2018 Bill.com Small and Medium Business Index
Bill.com surveyed nearly 1,700 small and medium businesses across the US to determine SMBs’ sentiments about the current economy as it relates to their businesses.
The Palo Alto, California-based business payments company noted that the majority of small businesses surveyed have a positive outlook on the economy. A large number (78%) of SMBs are expecting economic conditions to stay about the same or improve in the coming year, with 66% saying they are better off financially compared to a year ago.
However, the survey also revealed that a large number (78%) of small businesses are concerned about tax policy and how it will affect their businesses.
“While 78 percent are concerned about tax policies impacting their business, 68 percent find potential upcoming changes in Federal regulations concerning issues and 65 percent find potential upcoming changes in State regulations also concerning,” Roberts says.
US Small Business Economy Concerns
Potential upcoming tax policy changes are not the only things US small businesses are worried about, according to Bill.com. The index says 64% of small businesses also worry about health care legislation and how potential policy changes might affect their business.
Local small business regulations are another concern for some 59% of SMBs. Immigration policies is a concern for some 45% of SMBs, and tariff policies is a concern for 42% of SMBs.
What economic issues are you concerned about in your small business?
US Small Business Economy Predictions
While the current political and economic climate is causing a lot of concern for small businesses, 41% of small businesses surveyed predict that US business conditions will be better off in the coming year. The survey indicates 66% also believe now is a good time to make business-related growth investments.
More than half (63%) of SMBs say now is a good time to add permanent W-2 employees to their staff and 74% believe now is a good time to add non-permanent contractors to their team.
You should probably analyze your small business and see how you too can make the most of the current economic landscape.
Bill.com conducted the survey between August 29, 2018 and September 15, 2018, querying members of its Business Payments Network with a view to improve the company’s offerings.
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