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Small Businesses: Difference between revisions
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=== Magaly === | === Magaly === | ||
There are still a lof of questions about the debt structure of small businesses, their credit worthiness, their depanced on it, and data about it seems to be limited or non existance | |||
'''Key Insights''' | |||
* Even though small businesses have struggle the most, the majority still see their businesses in a good finantial position, but the optimism about the economy is very low still. | |||
* Employment mesuare by ADP, has only decline in the very small businessess (1-19 emplloyees), but still less than 1% y/y drop.Job growth is declining for most business sizes. | |||
* CFO survey reports than from Q1 to Q2 expected 2023 revenue fell from 7.2% to 2.3%, but expected employment growth increased from 2.2% to 6.1% | |||
* Inflation is still considered the biggest concern among small businesses. If inflation does not ease, small businesses could continue to struggle specially as pricing power is diminishing. | |||
* Due to the uncertantiy, higher rates and financing conditions small businesses are pausing plans about expansion or spending. | |||
* Much like 2008, small businesses seems to be in a more difficult position than larger firms. | |||
=== Others === | === Others === | ||
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The 2022 SBCS yielded 7,864 responses from a nationwide convenience sample of small employer firms with 1–499 full- or part-time employees (hereafter “firms”) across all 50 states and the District of Columbia. <ref>https://www.fedsmallbusiness.org/survey/2023/report-on-employer-firms</ref> | The 2022 SBCS yielded 7,864 responses from a nationwide convenience sample of small employer firms with 1–499 full- or part-time employees (hereafter “firms”) across all 50 states and the District of Columbia. <ref>https://www.fedsmallbusiness.org/survey/2023/report-on-employer-firms</ref> | ||
* Performance indices for revenue and employment growth increased from lows in the 2020 survey. Still, both performance indices remain substantially beneath those from prepandemic surveys. | * '''Performance indices for revenue and employment growth increased from lows in the 2020 survey.''' Still, both performance indices remain substantially beneath those from prepandemic surveys. | ||
* Share of firms operating at a profit rose from 35% in the 2021 survey to 45% in the 2022 survey. | * Share of firms '''operating at a profit rose from 35% in the 2021 survey to 45%''' in the 2022 survey. | ||
* Year-over-year, firms’ self-reported financial condition remains little-changed from 2021. Seventeen percent of firms reported that they were in “very good” or “excellent” financial condition, 19% were in "poor" condition. | * Year-over-year, firms’ self-reported financial condition remains little-changed from 2021. Seventeen percent of firms reported that they were in “very good” or “excellent” financial condition, 19% were in "poor" condition. | ||
* Between 2021 and 2022, the net share of firms expecting revenue growth in the next 12 months fell from 42% to 35% and remains significantly below prepandemic levels. | * Between 2021 and 2022, the net share of '''firms expecting revenue growth in the next 12 months fell from 42% to 35% and remains significantly below prepandemic levels.''' | ||
* The net share of firms anticipating growth in employment levels also declined, falling from 31% in 2021 to 27% in 2022. | * The '''net share of firms anticipating growth in employment levels also declined, falling from 31% in 2021 to 27% in 2022.''' | ||
* Share of firms with outstanding debt has nearly returned to prepandemic levels (26%), the share of firms holding larger amounts of debt—more than $100K—remains higher than in 2019. (40% vs 31%). | * '''Share of firms with outstanding debt has nearly returned to prepandemic levels (26%'''), the share of firms holding larger amounts of debt—more than $100K—remains higher than in 2019. (40% vs 31%). | ||
* 40% of employer firms sought loans, lines of credit, or cash advances in the prior 12 months. 34%of employer firms sought pandemic-related financial assistance in the prior 12 months. | * '''40% of employer firms sought loans, lines of credit, or cash advances in the prior 12 months'''. 34%of employer firms sought pandemic-related financial assistance in the prior 12 months. | ||
== Other Surveys == | == Other Surveys == | ||