Majority of US SMBs Expect Revenue to Increase in the Next Year : Research

Core Insights - Small and mid-sized business owners in the US are cautiously optimistic about the upcoming year, with 74% expecting revenue increases and around 60% planning to expand their businesses [1][2] - Business owners are focusing on growth and innovation, with priorities including expanding customer bases (47%), products and services (39%), and marketing tactics (35%) over the next five years [2] - Labor shortages are impacting 61% of business owners, leading to increased working hours and wage raises to attract talent [3] Business Outlook - 74% of business owners expect revenue increases, and 60% plan to expand their businesses [1] - Confidence is linked to stabilization of tariff policy (53%), cooling inflation (52%), lower interest rates (52%), and stronger supply chains (39%) [1] - 91% of business owners plan to adopt more digital tools, including AI, to modernize and improve efficiency [2] Labor Market Challenges - 61% of business owners are affected by labor shortages, with 50% working more hours and 40% raising wages [3] - Only 1% plan to lay off employees in the next 12 months, while 43% plan to hire more [3] Technology Adoption - 77% of business owners have integrated AI into their operations in the past five years, primarily for marketing (50%), content production (38%), customer service (37%), and inventory management (28%) [3] - Small business payments to tech services, including AI, increased nearly 8% year-over-year as of October [3] Supply Chain and Inflation Management - 75% of business owners report being impacted by supply chain issues, with 52% raising prices and 32% facing sourcing difficulties [3] - 88% are affected by inflation, leading to price increases (64%) and reevaluation of cash flow and spending (39%) [3] Digital Transformation - Business owners are focusing on accepting more digital payments (52%), improving employee workflows (47%), implementing digital-first marketing strategies (45%), and increasing cybersecurity measures (30%) [4] Succession Planning - Among those with a succession plan, 32% plan to transition to a family member, while 38% plan to sell the business [5] - 60% have a succession plan, but 40% have not prepared for the future of their business [2]