Results of a new survey of small business owners by Bizfi suggest those owners are feeling more optimistic about the state of the American economy.
That optimism is reflected in increased investment. Seven out of every eight business owners plan on investing more in their companies in 2016 than they did last year, and most (91.4 percent) will borrow to do so. More than one third (38.3 percent) plan to borrow between $10,000 and $40,000 while 37.5 percent plan on borrowing more than $40,000.
“It is clear both through the survey as well as seen in the uptick in application submissions we receive on a daily basis that small businesses are looking to improve and grow,” Bizfi founder Stephen Sheinbaum said. “They are strategically planning for these endeavors, and accessing capital to do so.”
Other findings were:
- 67.6 percent selected alternative financing as their preferred funding source;
- 20.7 percent plan to access short-term funding;
- 31.5 percent plan on borrowing from a local bank;
- 27.9 percent plan to use a credit card or line of credit;
- 28.7 percent said they were affected by the Fed’s rate hike;
- 42.9 percent plan to expand locations, and of those 22.3 percent envision adding additional ones;
More than 60 percent are borrowing the funds for working capital. Of those, 38.3 percent will use it for marketing, another 38.3 percent will invest in inventory and 30.9 percent will increase hiring.
Many small business owners plan on investing in equipment, with 57.8 percent investing in vehicles technology and industry specific equipment. Most of those (82.9 percent) plan to buy and not lease. More than half also plan on investing in software.
“The fact that business owners are expanding and investing in equipment and employees signals a positive future for the U.S. economy,” Mr. Sheinbaum concluded. ember