Ongoing Inflation and Whispers of Recession Have Small Business Owners on Alert, but Optimism Remains High, JPMorgan Chase Survey Finds
- 67% expect revenue growth in the next six months
- 45% are accelerating growth
- 81% plan to borrow money
- 45% plan to expand
- Mental health and stress management gain importance
- 36% report operations or sales outside the US
- Businesses adapt to costs through price increases and expense cuts
- 33% plan to add ChatGPT and 42% plan to add other AI applications
- 77% report expense increases of 6% or more
- 47% expect a recession in H2 2023
(Photo: Business Wire)
The survey, which speaks with decision-makers at more than 500 small businesses with annual revenues under
“These findings confirm what our bankers are hearing every day from our clients – that despite ongoing concerns about recession, inflation and staffing, small business owners are optimistic,” said Ben Walter, CEO of Chase Business Banking. “To their credit, they continue to demonstrate an ability to adapt and adjust through the ups and downs of economic cycles.”
Lingering Concerns: The rising costs of materials and goods are continuing to drive up business costs. So it’s unsurprising that inflation remains a top concern for business leaders, with
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Hiring:
45% are “extremely” or “very” concerned about the limited supply of candidates. -
Taxes:
38% feel that government should focus on lowering tax rates and reducing credits and deductions. -
Supply Chain:
16% report supply chain disruptions as a top challenge.
However, despite inflation, hiring challenges and concerns over taxes,
Recession-Proof Spirits: While
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Room for Expansion:
81% are planning to borrow money and45% are looking to expand their businesses. The overall percentage of respondents who plan to add or increase locations due to growth rose from35% to45% since November. -
Addressing The Stress: Some of the unshakeable optimism may be tied to a deepened focus on mental health and stress management in the workplace. Nearly three-quarters (
71% ) of business leaders report that managing these factors has become an important issue for their employees and their businesses, and more business leaders reported offering mental health days since November (up 13 percentage points). -
Reaching New Customers: More than a third (
36% ) of business leaders are reporting operations or sales outside ofthe United States , which represents a significant increase since November. - Staying Nimble: Businesses have continued to adapt to increasing costs by raising prices on select products and services, cutting nonessential expenses, and purchasing smaller inventory orders.
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Harnessing the Power of New Tech: Business leaders are ready to ride the artificial intelligence wave.
33% plan to add ChatGPT to their business in the coming year, and42% plan to add other artificial intelligence applications — up14% from November.
Survey Methodology
JPMorgan Chase’s Midyear Business Leaders Outlook survey was conducted by Chase Insights from May to July 2023. It features data from 505 business leaders across the professional services, retail, technology, healthcare and other key industries. The results of this online survey are within statistical parameters for validity, and the error rate is plus or minus
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of
View source version on businesswire.com: https://www.businesswire.com/news/home/20230914532172/en/
Media Contacts:
Business Banking: Devi Kinkhabwala, devi.kinkhabwala@chase.com
Source: JPMorgan Chase & Co.