MCLEAN, Va., Oct. 7, 2019 /PRNewswire/ -- Nearly two-thirds (64 percent) of small business owners (SBOs) say current business conditions are good or excellent, while 43 percent say they are concerned that a recession will impact the success of their business in the next year, according to Capital One's (NYSE: COF) latest Small Business Growth Index. The biannual survey of 500 small business owners (SBOs) found that in the six months since the last survey, small business optimism has increased five percentage points and recession concerns have decreased six points.
"We have been working with small business owners for a long time and know this population well. Even so, we continue to be struck by their resilience. While small business owners are expressing some real concerns over a potential recession, they aren't allowing this kind of speculation to dampen their efforts to grow or invest in their businesses," said Jenn Flynn, head of small business bank at Capital One. "Small business owners are cautiously optimistic - they are holding to their financial forecasts, still planning to hire and still investing."
Following are key themes uncovered by the Fall 2019 Small Business Growth Index:
While overall concerns about a recession have decreased since the last survey, an economic downturn would have a major impact on small business - especially women-owned businesses.
Business owners are keeping an eye on the 2020 presidential election as they plan for the future.
Mission-driven initiatives are emerging as a way for businesses to attract and retain customers.
Hiring remains steady, with business owners relying on increased salaries to recruit new employees.
"It is an interesting point in time, as the economy continues to be relatively strong and optimism remains steady, many still feel concerned about a potential recession and are uncertain about the impact of the 2020 presidential election," said Brad Jiulianti, head of small business card at Capital One. "We are confident that the small business community will continue to tackle the challenges that come their way by staying positive and courageous."
Capital One's Fall 2019 Small Business Growth Index Survey was conducted by the market research and business intelligence firm Engine (formerly ORC International). For this telephone study, Engine interviewed a national sample of 500 for-profit small businesses in the U.S. Small businesses are defined as those with a total annual revenue less than $10 million. Interviews were conducted from July 29-August 22, 2019. One respondent per business was interviewed. The margin of error is +/- 4.38 percentage points at a 95% confidence level.
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SOURCE Capital One