Retail Observer

RETAILOBSERVER.COM MARCH 2016 90 TALENT AND CAPITAL INVESTMENTS ARE PLANNED TO FUEL GROWTH As they follow their path to growth, a number of small business owners are planning both capital and talent investments. As many as 59% plan to hire staff over the next six months, and among those with hiring plans, 29% are planning to hire only full-time workers; 22% are planning to hire only part-time workers; and 8% are planning to hire both full and part-time workers. Additionally, 71% plan to make capital investments, which include investments in computer and systems software/additional software licenses (42%) and manufacturing/production equipment (23%). "As 2016 unfolds, small business owners are working harder than ever to position their businesses for growth," said Janey Whiteside, SVP & GM Customer Marketing & Relationship Management, American Express OPEN. "The personal commitments that small business owners make are vital to their success, and their planned investments are indicative of how important growth is in the coming year." ECONOMY AND CASH FLOW PRESENT CHALLENGES TO GROWTH While small business owners remain confident in their ability to grow their businesses, the economy remains a top concern. Uncertain economic conditions was identified as the single greatest challenge that business owners face (24%; up from 17% when asked in August 2015), followed by concerns about the rising costs of doing business (17%; flat from August). Among manufacturers, financing (finding money to expand) is the biggest challenge (27%), followed closely by uncertain economic conditions (26%). Cash flow is another cause for concern, as nearly two-thirds (64%) of small business owners expect to experience cash flow issues over the next six months. Their greatest cash flow concerns include: • Having enough cash on hand to win new business (18 %) • The ability to accurately track cash flow (16%) • Accounts receivable (14%) Despite these headwinds, small business owners see various ways to meet these challenges and grow their businesses. When asked about the top two most important triggers that could really take their business to the next level, 40% said expanding their product/ service offerings while 34% said expanding the market for their current products and services. CONFIDENCE IN ACCESS TO FINANCING; CREDIT/CHARGE CARDS SEEN AS IMPORTANT TOOL An overwhelming majority of small business owners (92%) are confident that they can access the funding they need to grow their business. When looking at how they will fund and grow their businesses, 71% identify credit and charge cards as an important tool and 35% see them as a "very" important tool. Given the importance of credit cards as a source of short-term funding, three quarters (76%) of business owners who use credit cards for business expenses indicate that an increase in their credit limit would be beneficial to their business. And, among those who have hit their credit limit, more than half (57%) have attempted to have their limit increased. More than three quarters of small business owners (78%) who use credit cards for business expenses say credit card rewards are important to their business. The rewards that they see as most valuable include: • Cash back (74%) • Airline miles (32%) • Travel discounts (29%) SURVEY METHODOLOGY The American Express OPEN Small Business Growth Pulse is based on an online sample of 1,001 U.S. small business owners/ managers of companies with $250,000 or more in revenues and fewer than 100 employees. The anonymous survey was conducted via the Internet by Ebiquity December 9-18, 2015. The poll has a margin of error of +/- 3.1% at the 95% level of confidence. B U S I N E S S [ N E W S ] continued RO "AS 2016 UNFOLDS , S M A LL BUS INES S OW NERS A RE WORKING H A RDER TH A N E V ER TO P OS ITION THEIR BUS INES S ES FOR GROW TH . . ." —Janey Whiteside, SVP & G M Customer Marketing & Relationship Management, American Express O P E N

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