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2023 annual small business owners survey results1

Small businesses take steps to get ready for a challenging year.

The pandemic and supply chain issues may have disrupted small businesses for the past few years. Now it’s inflation and ongoing concerns about the economy that have clouded their business outlook. In the face of these uncertain times, small business owners are looking to invest in technology and their workers to grow sales and attract and retain talent.

Preparing for an uncertain economy

Owner confidence in the economy and in their own businesses has fallen.

Percentage of small business owners saying they’re extremely to somewhat confident in:

* Survey completed in February 2020—pre-COVID-19.

Small business owners are less confident in their business prospects, in their local economy, and in the overall economy.

Business owners are again feeling stressed.

Percentage of small business owners saying they’re extremely to somewhat stressed:

57%

57%

2021

47%

47%

2022

54%

54%

2023

Inflation and rising costs are top of mind.

Percentage of small business owners who are stressed about:

35%

Inflation

35%

Rising costs

26%

Economic uncertainty

22%

Finding new customers

18%

Meeting customer expectations

Most owners are looking for a way to grow.

Growth is at the top of the list.

Growth is at the top of the list.

51% of small business owners have growth-oriented objectives while 36% are recovering from the pandemic or trying to survive.

Owners want to acquire additional growth skills.

Percentage of small business owners saying they need improvement in:

Prospecting for new customers

45%

Networking to generate referrals

37%

Creating new products and services

26%

Customer service

21%

Improving selling and servicing skills

20%

Cross selling customers

17%

Growth-oriented owners are investing in technology to drive sales.

Sales and service investments lead the way.

Sales and service investments lead the way.

80% of small business owners plan to invest in service and sales technology in 2023.

Top investments in customer communications and service technology

Percentage of small business owners planning to invest in:

Social media

28%

Email, text, and campaign marketing

24%

Online presence, ecommerce, website

20%

Search engine marketing

19%

Personalization of customer service

16%

Customer feedback tools

16%

Top investments in operations or productivity technology

Percentage of small business owners planning to invest in:

Email automation

17%

Online invoicing for sales

15%

Financial payments processing

13%

Inventory management systems

12%

Decision support and data analytics

11%

Remote work is here to stay.

Using remote workers.

Using remote workers.

76% of small businesses plan to maintain or increase their remote workforce.

Remote work has tangible benefits.

Percentage of small business owners citing top benefits to remote work:

Improved work-life balance

34%

Cost savings

34%

Increased productivity

27%

Improved employee morale

23%

Access to more talent

18%

Increased employee retention

17%

The top downsides of remote work

  1. Employee distraction
  2. Employee motivation
  3. Employee supervision
  4. No personal interaction
  5. Lowered productivity

Increasing wages and going beyond pay to attract and retain workers

Taking action to attract and retain employees.

Taking action to attract and retain employees.

69% of small businesses took actions to retain employees.

Steps to retain staff

Percentage of small business owners who:

Increased wages

24%

Provided training

18%

Offered remote work

16%

Offered additional benefits

14%

Employee recognition programs

13%

Health & wellness programs

11%

Owners seek the right work-life balance.

Looking for work-life balance.

Looking for work-life balance.

39% of small business owners are still looking for a good work-life balance.

Not finding work-life balance has negative consequences.

Percentage of small business owners who experienced:

Increased stress or anxiety

32%

Insomnia or trouble sleeping

21%

Less time for self-care

21%

Increased irritability

18%

Strain on close relationships

18%

Physical health problems

16%

Actions to achieve owner work-life balance

Percentage of small business owners who:

Schedule personal time

39%

Follow defined work hours

31%

Create work boundaries or set "unavailable" times

30%

Set specific work-life balance goals for myself

25%

Employ time tracking tools

18%

Delegate more responsibilities at work

17%

Cash shortfalls decline—but haven’t gone away.

Fewer small businesses experienced cash shortfalls—but 60% more than pre-pandemic.

Percentage of small business owners experiencing cash shortfalls: 45% in 2020*, 91% in 2021, 84% in 2022, and 73% in 2023.

Covering cash shortfalls starts with the owner’s cash.

Percentage of small business owners covering cash shortfalls with:

Owner cash infusion

36%

Business cash reserves

33%

Business line of credit

28%

Stop paying owner salary

26%

Owner personal loan

21%

Start preparing now to stay ahead of challenges that may come your way.

Our teammates are ready to support you with advice and expertise to help you as you prepare for the road ahead. Set up a virtual or in-person appointment , call 844-718-1530 to speak with a Small Business consultant, or visit Truist Small Business to learn how we can help your business reach its goals in 2023.

Make an appointment to speak with a Truist branch teammate about Truist Small Business