Small businesses are expecting an increase in growth in 2016, according to a report conducted by Yelp. The Small Business Pulse Survey showed that small companies are predicting a 26% increase in growth next year.
Young businesses are the most optimistic about their growth, with nearly 50% expecting to expand in the next year.
Private sector jobs
According to Yelp economist Michael Luc, small businesses are an important part of the economy and provide “roughly half of all private sector jobs, and also provide direct benefits to the communities that get to enjoy their goods and services.”
He stated that small business owners are optimistic, which is consistent with a recent rise in retail sales as well as relatively strong consumer sentiment.
Despite small businesses feeling positive, there are a number of challenges that they face, such as the cost of healthcare and minimum wage regulations. Results from the survey showed that the biggest challenge is developing competitive growth strategies.
The survey outlined the biggest concerns for small businesses, with 60% being worried about attracting and keeping customers, 32% voicing concerns over managing limited marketing budget and 30% seeing competition from larger businesses as preventing their business from growing.
Commenting on the worries that small businesses have, Luc said: “Small businesses worry about their own ability to grow, even as they remain optimistic. Health care and other concerns, while important, seem to be less of a problem for many small businesses as they prioritise growth.”
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