First Citizens Bank Forecast Shows Business Growth Confidence Back to Pre-Pandemic Levels
Small business owners exhibit strong growth optimism with nearly 80% feeling confident about the year ahead, according to the First Citizens Bank Small Business Forecast. This marks a 9% increase since September 2020, returning to pre-pandemic levels. Despite 40% citing COVID-19 as a concern, confidence in economic conditions also rose, with 61% optimistic about the upcoming year. However, perceived business success decreased from 71% to 61%.
- Nearly 80% of small business owners are confident about growth in the next 12 months, marking a 9% increase since September 2020.
- 61% of surveyed owners are confident about economic conditions for the upcoming year, a 4% increase from six months ago.
- Top growth strategies include adding new products/services (47%) and increasing marketing budgets (43%).
- Perception of being successful or very successful declined from 71% to 61% over the last six months.
- 40% of business owners cite COVID-19 as a top concern affecting their goals this year.
Nearly
RALEIGH, N.C., May 03, 2021 (GLOBE NEWSWIRE) -- Small business owners have indicated a renewed sense of confidence for growth in their businesses during the year ahead despite the ongoing global pandemic, according to a new survey.
The seventh annual First Citizens Bank Small Business Forecast found nearly
Of the states in which the survey was conducted, California had the highest increase in business growth confidence — a
Forty percent cited COVID-19 as a top concern impacting their ability to meet their business goals this year, which is an
“The small business community continues to show us its resiliency and flexibility to adapt to today’s realities without letting the challenges steal their optimism for a brighter future,” said Doug Sprecher, director of Sales Strategy at First Citizens Bank. “This study indicates that small business owners are continuing to be resourceful to not only stabilize but also grow their businesses in the months and years ahead. For 123 years, First Citizens has been on the side — and by the side — of small business owners. We’ll continue to use this data to educate and arm them on the opportunities that exist for strong business performance, while helping them plan and address any challenges today’s market produces.”
Economic Viewpoints
The survey also found economic sentiments for this year and beyond are on the rise. Of those polled,
As it relates to long-term economic recovery, two-thirds of respondents stated they are optimistic or very optimistic about the economic conditions in the next two to three years. Once again, California showed the strongest gains in the long-term economic outlook with
Other Key Findings
- Of factors impacting business owners’ abilities to meet their goals in 2021,
35% said the new presidential administration was a top concern. Other factors included unpredictable market conditions (32% ) and the impact of climate change (21% ). - Overall, business owners’ perceptions of being successful or very successful in the last six months declined from
71% in September 2020 to61% in 2021. Florida (28% ), Wisconsin (23% ) and California (21% ) showed the sharpest decline in perceived business performance with a difference of28% ,23% and21% , respectively. - With
40% of business owners indicating they plan to secure funding in the next year, banks continue to lead the funding considerations at49% . Business credit cards (40% ) is a close second for funding considerations. - Top growth strategies for the year ahead include adding new products/services (
47% ), increasing advertising or marketing budgets (43% ), hiring more employees (40% ), and increasing or upgrading current facilities/equipment (26% ). - Local loyalty continues to drive positive sentiment with
72% of all respondents in all five markets agreeing that the state where their business is located is a great place to start a small business. By state, the percentage of respondents agreeing their state is a great place to start a business is: California (62% ), Wisconsin (74% ), North Carolina (75% ), South Carolina (76% ) and Florida (77% )
The First Citizens Bank Small Business Forecast is conducted annually in California, Florida, Wisconsin, South Carolina and North Carolina to assess the motivations, sentiments and success of small business owners in the United States. For more information on the survey and its results, visit firstcitizens.com/smallbizsurvey.
About First Citizens Bank
Founded in 1898 and headquartered in Raleigh, N.C., First Citizens Bank is one of the largest family-controlled banks in the United States, with offices in 19 states. Drawing from over a century of experience serving the needs of business customers, First Citizens focuses on developing long-term relationships and offers a comprehensive array of products and services to help small businesses manage their finances and grow. First Citizens Bank is a major subsidiary of First Citizens BancShares Inc. (Nasdaq:FCNCA), which has over
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| First Citizens Bank | |
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FAQ
What does the First Citizens Bank Small Business Forecast indicate for 2021?
How confident are small business owners about the economy in 2021?
What key concerns do small business owners have for 2021?
What are the growth strategies small business owners plan to implement in 2021?
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