Small Business Outlook 2017: Positive [Infographic]
California & Nevada small business owners remain optimistic for 2017
Each year, TMC Financing surveys our small business borrowers in California and Nevada to understand their outlook and predictions for the coming year. For 2017, the outlook is generally optimistic and favorable, according to the 230 small business owners who completed the survey.
“About 64 percent predict their business and revenue will continue to grow this upcoming year,” TMC EVP Rich Grant said, “a slightly more optimistic outlook than the previous year.” Thirty-two percent predict their sales will remain the same in 2017, while only 4 percent foresee a decrease in revenue.
Per the survey, the small business owner’s predictions for 2016 were correct in regards to who would see an increased revenue. Sixty-two percent predicted an increase in revenue in 2016 and 62 percent in fact saw an increase in revenue. Only 5 percent predicted a decrease in revenue; however, 14 percent incurred revenue loss. Sales revenue remained the same for 24 percent of the respondents.
The hiring outlook for 2017 is positive and very similar to last year. Forty-four percent anticipate hiring additional employees, which is 2 percent higher than last year’s prediction. Fifty-three percent anticipate maintaining their current workforce, which is 2 percent lower than last year’s prediction. For both 2016 and 2017, only 3 percent predicted a downsize.
In 2017, about 23% of small business owners are contemplating increasing their real estate. Fourteen percent plan on purchasing a new building while 9 percent plan on leasing additional space. The interest in expansion is down from 2016.
Refinancing SBA 504 loans is now a possibility, and our small business owners let us know that about 19 percent of them plan to take advantage of this.
The TMC Annual Small Business Outlook Survey for 2017 was conducted by email in November and December of 2016. The sample size of 230 from a total population of 1500 borrowers who closed loans with TMC in the past three years provides a confidence level of 95% with a margin of error of 5.77%. The views and opinions represented here are from a collection of business owners throughout California and Nevada and do not reflect the views of TMC Financing nor the U.S. Small Business Administration.