Fanbank Survey Reveals 73 Percent of Small Businesses are Likely to Expand in the Next 1-2 Years
Main Street optimistic about growth; sees access to technology that will help them “work smarter not harder” as a key requirement
Majority of those who don’t plan to expand cite a desire to preserve their current lifestyle as the main reason
SANTA MONICA, Calif., May 06, 2019 (GLOBE NEWSWIRE) -- A new survey conducted to recognize National Small Business Week (May 5-11) reveals that the vast majority of small businesses in the United States plan to expand in the next 1-2 years, despite the growing fears of an economic slowdown. The survey, which was commissioned by Fanbank, the first commerce automation platform for Main Street, provides valuable insight into an often-overlooked segment of the small business community, with 94 percent of survey responses coming from businesses with 20 or fewer employees.
“What’s remarkable about this survey compared to others conducted on so-called small businesses which are widely defined as having less than 500 employees, is that we’re finally hearing from Main Street businesses with less than 20 employees who employ nearly 10 million people across the U.S. and make up the heart of their respective communities,” said Mitch Jacobs, founder and CEO of Fanbank.
The survey results from 583 U.S.-based small businesses found that of the 73 percent who plan to expand, 52 percent were “definitely” committed to growing, while only 21 percent said they “probably” will. In addition, the survey asked why small businesses will or won’t expand and found that less than half (44 percent) are motivated by a desire to make more money, followed by 38 percent who cite a rapid growth in demand for their products/services as the main reason for expansion. When asked what they consider to be the most crucial resource needed to achieve growth, 41 percent of small businesses believe access to capital is most important followed by access to technology (26 percent) and access to talent (26 percent). And finally, of those who don’t plan to expand, 34 percent cited that they want to preserve their current lifestyle, allowing them enough time to spend with friends and family.
“These Main Street businesses share an optimism not seen in other parts of our economy and they desperately need access to capital and technology that will help them achieve the growth they want in order to serve their communities,” continued Jacobs. “We also need to think differently about this particular segment in contrast to Wall Street-backed chains and franchises or small businesses with closer to 500 employees. These smaller businesses are motivated by a sense of community and family, not growing into a much larger business.”
Following are additional insights from the survey:
-- Thirty-three percent of small businesses with less than $100,000 in annual gross revenues cite access to technology that helps them work “smarter not harder” as the most crucial resource, and that number rises to 37 percent for sole proprietors, who are arguably under the most pressure to maximize their time. -- Of the small businesses that weren’t motivated by profits, demand or pressure from the competition, 1 in 3 cited more altruistic reasons such as “I enjoy providing jobs to people” and “I want to build my community” as their main motivation for expansion. -- Optimism about expansion was strongest along the West Coast, with 85 percent planning to expand, and 56 percent saying they “definitely” plan to expand.
MethodologyThe Fanbank Small Business Survey was conducted on the QualtricsXM platform from April 26, 2019 – May 1, 2019 and included 583 completed responses from U.S.-based small businesses.
About Fanbank Fanbank, Inc. ( www.fanbank.com ) is the first commerce automation platform for Main Street. Fanbank instantly transforms the existing point-of-sale terminal used by a local business, the credit/debit cards in their customers’ wallets and the mobile devices in their pockets into a platform all small businesses can use to merchandise and price their offline goods and services for sale online in seconds. Founded in 2017 by 4-time small business fintech entrepreneur, Mitch Jacobs, Fanbank is based in Santa Monica, Calif., and serves thousands of local businesses across the country.
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