Small businesses are feeling more optimistic about their businesses and industries, according to BIA/Kelsey’s Local Commerce Monitor™ survey of small and medium sized businesses (SMBs). Two new questions added in Wave 20 (3Q/2016) of our survey deal with SMBs’ feelings regarding revenue changes in their industry and their business in the next year. While 37.7% of SMBs reported that they expect their industries’ overall revenue to maintain its current level, 49.2% expect revenues in their industry to increase. Less than 7% expect their industries’ revenues to decrease.
Not only are small businesses optimistic about their industries but also about the future of their own business. When asked about their own business, 32.0% of small businesses reported that they expect their revenues to remain at their current levels, while 59.6% expect their revenues to increase. Only 2.7% are predicting their revenues to decrease. Small businesses show a direct correlation between the success of their businesses and how much they spend on advertising and marketing. In fact one of the top decisions to increase ad spend is based on revenue left after expenses. Helping small businesses grow their business is good ROI as most will increase their advertising spend in the next years.
numbers don’t add up to 100% as “Not Sure” was not included
BIA/Kelsey’s LCM, Wave 20 full report can be purchased in the BIA/Kelsey eStore. Additional LCM, Wave 20 reports are coming soon.