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Small Businesses: Difference between revisions
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== Assessments == | == Assessments == | ||
Magaly | |||
=== Magaly === | |||
'''Key Insights''' | |||
=== Others === | === Others === | ||
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Financial decision-makers lowered their expectations for U.S. economic growth in the next year, with almost 40 percent of small firms expecting that tighter financing will curtail business spending. <ref>https://www.richmondfed.org/press_room/press_releases/2023/the_cfo_survey_20230628</ref> | Financial decision-makers lowered their expectations for U.S. economic growth in the next year, with almost 40 percent of small firms expecting that tighter financing will curtail business spending. <ref>https://www.richmondfed.org/press_room/press_releases/2023/the_cfo_survey_20230628</ref> | ||
* 32 percent of small firms reported that since the start of 2023, financing conditions have constrained their firm's investment or spending plans, compared to only 19 percent of large firms. | * '''32 percent of small firms''' reported that since the start of 2023, '''financing conditions have constrained their firm's investment or spending plans''', compared to only 19 percent of large firms. | ||
* 40 percent of small firms have already or expect to change their investment or spending plans in light of tighter financing compared to only 26 percent of large firms. When asked why access to or the cost of financing was not constraining their investment plans, | * '''40 percent of small firms''' '''have already or expect to change their investment or spending plans in light of tighter financing''' compared to only 26 percent of large firms. When asked why access to or the cost of financing was not constraining their investment plans, l'''arge firms were much more likely than small firms to reply that they faced favorable financing''', while also being less likely to say that they don't finance spending with debt. | ||
* Small and large firms reported that if access to or the cost of financing constrained spending, it would primarily hinder the pursuit of new business opportunities. Small firms were more likely than large firms to report an impact on their ability to refinance or pay down debt and, to a lesser extent, repair or replace existing capital assets. | * Small and large firms reported that if access to or the cost of financing constrained spending, it would primarily hinder the pursuit of new business opportunities. Small firms were more likely than large firms to report an impact on their ability to refinance or pay down debt and, to a lesser extent, repair or replace existing capital assets. | ||
* Since small firms are more likely to be constrained in their ability to finance new business opportunities, perhaps it is not surprising that their expectations for revenue growth in 2023 were also below those of large firms (median of 4 percent versus 5 percent). | * Since small firms are more likely to be constrained in their ability to finance new business opportunities, perhaps it is not surprising that their '''expectations for revenue growth in 2023 were also below those of large firms''' (median of 4 percent versus 5 percent). | ||
* On average, compared to large firms, small firms report being more affected by tight financing conditions, are less optimistic about the economy and their own prospects, and expect lower revenue growth in 2023. | * On average, compared to large firms, '''small firms report being more affected by tight financing conditions, are less optimistic about the economy and their own prospects, and expect lower revenue growth in 2023.''' | ||
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!CFOs' Growth Expectations for Their Own Firms, by Response Quarter | !CFOs' Growth Expectations for Their Own Firms, by Response Quarter | ||