Survey Says 64 Percent of Small Businesses Expect Growth But Challenges Remain

Regardless of the challenges they face, small businesses are optimistic about their growth, a new study has found.

CAN Capital’s 2016 Small Business Health Index (SBHI) reveals 64 percent of small business owners are expecting growth in the next 12 months. However, the study also found small businesses also faced other significant challenges — such as the number that  currently accept mobile payments.

Report on Small Business Optimism 2016

Small Business Owners Upbeat About Future

“It’s encouraging to see small business owners feeling so good about their prospects for growth,” said Daniel DeMeo, Chief Executive Officer for CAN Capital.

Interestingly, other recent studies have also found small businesses hopeful about their future prospects.

The 2016 State of Small Business Report, for instance, found 71 percent of small businesses anticipating revenue growth this year. Half of them, in fact, are planning to hire.

Similarly, a nationwide survey conducted by insurance company Allstate, in collaboration with USA Today, found 79 percent of small businesses feeling optimistic about the environment in which they operate.

Most Businesses Still Don’t Accept Mobile Payments

However, as the survey reveals, there are also significant challenges. For example, only 34 percent of small businesses are accepting mobile payments today. That’s a worry because mobile payment is rapidly gaining popularity as the consumers’ preferred method of payment.

It goes without saying small businesses need to take mobile payments seriously.

Luckily, adopting mobile payment programs doesn’t have to be a challenge for businesses. Gene Signorini, the vice president of mobile insights at Mobiquity told American Express’ OPEN Forum, “Mobile has really taken away the requirement that you have to build big systems and be a large company to be successful with technology.”

“In many ways, it is easier for small businesses to adopt mobile payment programs because they don’t have a large infrastructure to work through so small businesses can jump right in.”

Also, mobile payments can provide a host of benefits to small businesses including allowing businesses to better capture purchasing information and thus improve customer service.

About the CAN Capital 2016 Small Business Health Index (SBHI)

The CAN Capital Small Business Health Index measures small business owners’ sentiment about economic, business and consumer trends as well as other factors such as access to capital, growth and competition.

CAN Capital conducted the online study of small business owners between July 12 to 18, 2016. Percentages are based on 1,000 responses.

Phone User Photo via Shutterstock