Highlights from 2024 annual small business owners survey results^{Disclosure 1}

Small businesses press ahead despite challenges.

Owners are still most worried about inflation, rising costs, and the overall economy. But they continue to move forward, investing in innovative technology—such as AI—and seeking new customers, some internationally.

Continued economic worries

Owner current confidence in the economy continues to decline.

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

* 2024 survey sample includes businesses up to $10M in revenue.

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

Rising costs and inflation are the top owner concerns.

Percentage of small business owners surveyed whose top three business concerns include:

43%

Rising costs

41%

Inflation

31%

Economic uncertainty

30%

Finding new customers

17%

Generating sufficient cash flow

Owners are feeling stressed in today’s business environment.

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

47%

2022

53%

2023

57%

2024*

Stress is impacting owners’ lives.

Owners are optimistic about the upcoming year.

62% of small business owners surveyed are optimistic about the year ahead, up from 54% in the 2023 survey.

Owners are feeling the effects.

Percentage of small business owners surveyed who say they’ve experienced:

Increased stress/anxiety

44%

Insomnia/trouble sleeping

30%

Spending less time on self-care

29%

Increased irritability

28%

Mental health issues

20%

Strain on close relationships

18%

Owners are concerned about inflation and taking action to combat it.

Owners are worried about inflation.

76% of small business owners surveyed are somewhat/extremely concerned about inflation.

90% have reacted to inflation by taking actions such as raising prices, cutting costs, or increasing efficiencies.

Percentage of small business owners surveyed who responded to rising costs of labor and materials by:

Raising prices

50%

Cutting non-essential spending

45%

Accepting lower profitability

34%

Renegotiating with suppliers

18%

Offering payment plans

16%

Increasing staff productivity

14%

Many owners say customers have generally accepted higher prices, while some see less frequent purchases and customers leaving.

Percentage of small business owners surveyed who say that in response to pricing changes:

Customers have generally accepted the changes in an inflationary environment.

54%

Customers have made smaller or less frequent purchases.

31%

A few customers have left.

20%

Many customers have left.

4%

Small businesses are considering the possibilities and risks of AI.

Some owners see the importance of AI to their businesses.

32% of small business owners surveyed view AI as very/extremely important to their business.

Owners see AI’s potential to increase productivity and improve customer service.

Percentage of small business owners surveyed who are interested in using AI to:

Increase productivity

40%

Improve customer service

34%

Save costs

33%

Enhance current products and services

27%

Get insights on customers and markets

24%

Compete with big business

20%

But owners also cite concerns about AI.

Percentage of small business owners surveyed citing various concerns about AI:

Too new and untried

33%

Exposure to cybersecurity threats

32%

Customer dissatisfaction with AI-generated responses

30%

The technical skills needed to use it

27%

Issues integrating with existing processes and systems

23%

Discourages employees

19%

Internet bandwidth

13%

Business owners look to growth opportunities in other countries.

International sales pique owners’ interest.

44% of small business owners surveyed are currently selling internationally or are interested in doing so.

Owners see barriers to international sales.

Percentage of small business owners surveyed citing various barriers to international sales:

Currency fluctuation

35%

Language and knowledge of culture

32%

Cost of rules and regulations

32%

Lack of relationships/contacts

30%

Difficulty providing customer service

29%

Difficulty understanding rules and regulations

29%

Ability to understand foreign customer needs

28%

Many small businesses source internationally.

59%

Source materials and products from foreign suppliers

28%

Source labor and services internationally

Increasing wages and going beyond pay to attract and retain workers

Owners surveyed cite multiple concerns with staffing.

Demands for higher pay
Recruiting to find the right people
Competing with larger companies for people
Retention to keep the right staff
Providing healthcare benefits
Employee motivation
Staff development and training
Offering flexible/remote work

Owners are increasing wages but also using other non-compensation levers to attract workers.

Percentage of small business owners surveyed who:

Increased wages

45%

Offered work-from-home/remote work options

20%

Provided additional paid time off/holidays

19%

Provided professional training and skill development

18%

Added employee recognition programs

17%

Owners attend to work-life balance.

Work-life balance falls short.

Only 48% of small business owners say their work-life balance is good or perfect.

Owners are taking actions to maintain good physical and mental health

Percentage of small business owners surveyed who are:

Getting regular exercise

62%

Eating right

55%

Taking vacations

42%

Saying “no”

33%

Maintaining flexible work hours/remote work to spend time with family

29%

Embracing failure/learning from mistakes

29%

Practicing meditation/yoga/mindfulness

27%

Cash shortfalls remain.

Most small businesses are still experiencing cash shortfalls.

Percentage of small business owners surveyed experiencing cash shortfalls:

Cash shortfalls are covered through business and owner reserves and lines of credit.

Percentage of small business owners surveyed covering cash shortfalls with:

Business cash reserves

39%

Business line of credit

38%

Owner cash capital infusion

35%

Stopped paying income/salary to myself

31%

Owner personal loan/home equity line

19%