First Citizens Bank's Annual Forecast Finds Small Businesses Confident, Undeterred By Economic Outlook
- 79% of small business owners anticipate growth in the next 6-12 months
- Georgia-based owners most confident at 94%
- Texas, North Carolina, and South Carolina owners also express strong confidence
- 60% of owners identify economic uncertainty as a challenge
- 54% cite inflation as a concern
- 30% report changes in consumer behavior impacting business performance
- 20% say lingering pandemic-related issues pose a challenge
- Business performance stable but below pre-pandemic levels
The ninth annual First Citizens Bank Small Business Forecast found
The survey includes responses from business owners in 10 states:
Confidence is strongest among
"To see confidence of this caliber feels incredibly promising," said Doug Sprecher, executive director of sales strategy at First Citizens Bank. "The First Citizens Bank Small Business Forecast continues to show the resiliency, strength and tenacity of the small-business community despite external challenges, such as economic uncertainty. As a bank, we're eager to help small business owners sustain their positive positioning in the market, leading to further innovation and growth nationwide."
Uncertain economic conditions complicate trajectory to growth
Small business owners' overall attitude of resilience prevails, even as
Lingering pandemic-related issues show decline
Just
Business performance remains stable
More than two-thirds (
Other findings
- Perception of success is highest among businesses with 11-50 and 51-plus employees, with close to
100% of respondents indicating success in the last year. This is a stark contrast to the60% of businesses with 10 or fewer employees sharing feelings of success in the past 12 months. Also, business owners in skilled trades (80% ) are more likely to claim success in 2023.
- Confidence in the near-term economy remains low across all states surveyed.
South Carolina andWisconsin have both seen a26% decrease in near-term economic confidence since 2021, with just39% of the former and30% of the latter feeling hopeful.Arizona expressed the lowest degree of confidence in near-term conditions at26% .
- Long-term economic confidence continues to be muted among small business owners. After plummeting in 2021 and 2022 by
14% , confidence in the long-term economy has remained relatively stagnant. Forty-eight percent of total respondents indicated hope for economic conditions in the next 2-3 years, down20% since 2019.
- Confidence in business growth declines with the age of respondents. Some
63% of owners over 55 years old are confident in their business' growth for 2023 – an8% decrease from 2022, and a stark contrast to the92% of those aged 18-24 who report confidence.
- Business owners are less concerned about global conflict (
24% , down10% from 2022) and federal tax law changes (23% , down4% from 2022) impeding growth in 2023. Rather, they identify inflation (54% , up3% since last year) and unpredictable market conditions (34% , up1% year-over-year) as the primary areas of concern.
The First Citizens Bank Small Business Forecast is conducted annually to assess the motivations, sentiments and successes of small business owners across
About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in
Contact: | Frank Smith |
First Citizens Bank | |
919-716-4121 |
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SOURCE First Citizens Bank