American Express Releases First Small Business Financial Reliability Report
The first report aims to track the tendency of small businesses to focus on money when making the financial decisions necessary to operate and grow their businesses.
American Express (NYSE: AXP) today released its first-ever Small Business Financial Confidence Report featuring survey data from 550 U.S. small businesses ranging from fewer than 10 to 500 employees. This ongoing report explores how economic obstacles and market trends affect the financial decisions and confidence of small business owners.
“This new survey reveals that nearly half of the small business owners surveyed feel confident when making financial growth decisions, suggesting that there is considerable room for improvement. there is,” he said. Anna Mars, Group President, Global Commercial Services and Credit and Fraud Risk, American Express. “By tracking the financial confidence levels of small business owners, this report provides insights into the trends behind the key money-making decisions they should make, how the macro environment influences those decisions, It helps us uncover what might have an impact and what can help improve the confidence of small business owners.”
Are small businesses confident in their financial decisions?
The report found that 54% of small business owners surveyed said they were very confident in their ability to make decisions about the healthy growth of their business. By business size, only 29% of the smallest SMEs say they are very confident in their ability to make healthy growth decisions, compared to 29% of the largest SMEs. 64%, highlighting a significant trust gap across business sizes.
Small businesses are interested in AI
When making business decisions, US small businesses surveyed said they would save time (39%), improve data security (21%), and provide more efficient customer service internally ( 20%) are focused on artificial intelligence (AI) tools. .
41% of all SMEs surveyed said they are currently prioritizing artificial intelligence to help them make operational decisions. By size, 16% of small businesses with the fewest employees surveyed say they see the benefits of AI. In the largest SMEs (75%), the percentage he more than quadruples. Customer service (19%) and marketing (14%) are reported as the top use cases for these small businesses using AI. Looking at the generational mix, Gen Z and millennial small businesses (56%) prioritize AI regardless of business size, ahead of older generations (24%).
Small businesses face increasing demand for staff
The report also found that more than half (51%) of SMEs surveyed are currently hiring, with the largest SMEs (89%) hiring more than the smallest SMEs (20%). We also found that it is much more likely that Seventy percent of these small businesses are hiring for financial growth, new role creation, or general need.
This is especially true for Gen Z and millennial small businesses surveyed, with 27% citing hiring and hiring as one of their top concerns this year.
Small businesses turn down opportunities because of confidence in cash flow
According to the report, 32% of small business owners surveyed said they would like more guidance on cash flow, and 31% said they would like more guidance on managing expenses. This uncertainty around cash flow affects the pursuit of growth opportunities. Data shows that 41% of small businesses surveyed “frequently” or “always” turn down potential opportunities due to lack of cash flow confidence.
To help small businesses manage cash flow, American Express business blueprint – A digital hub with an easy way to access and manage cash flow insights, digital financial instruments and business cards.
methodology: The online survey will be conducted March 20-30, 2023, and will include 250 small business leaders (less than 10 employees) and 200 small business leaders (11-100 employees). , the largest company conducted with 100 people. Small businesses (101-500 employees). The margin of error across samples is +/- 3 percentage points.
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