Roughly two-thirds surveyed report having a formal growth plan, yet nearly half say ideas for growing their business “keep them up at night”
A large majority (72%) of small business owners are prioritizing growth
according to the inaugural American Express OPEN Small Business Growth
Pulse, a survey of 1,000 small businesses with $250,000 or more in
annual revenues. Roughly two-thirds of surveyed small business owners
(65%) created a formal plan for growing their business.
However, growth itself has both positive and negative connotations for
small business owners, as almost half (49%) say that generating ideas
for growing their business “keeps them up at night,” followed closely
(36%) by concerns about cash flow issues. An overwhelming majority (93%)
say they are confident they can access the funding they need to grow
their business.
“Access to working capital becomes critically important as small
businesses look to pursue both expected and unexpected opportunities to
grow their business,” said Janey Whiteside, SVP & GM Customer Marketing
& Relationship Management, American Express OPEN. “When considering
options to help fund their business, surveyed small business owners
reported that low fees and interest are the most important factor,
followed by trust and security of the provider and easy access to funds.”
Slow and Steady Wins the Race
While small businesses are prioritizing growth, the approach they take
to pursue it varies. The most popular approach is a cautious one where
“slow and steady wins the race” (63%). One quarter (25%) take an
aggressive approach and “take the bull by the horns” as they look to
develop their business.
Nearly half (48%) of all business owners say they have grown their
business “significantly” since its inception. Among those who have
experienced growth, four in ten (41%) say the majority of their growth
has been planned, while less than three in ten say their growth was
organic or spontaneous (27%).
Increasing Customers Is Key; New Markets & Diversifying Products and
Services Are Top Growth Opportunities
Business owners recognize that customers are a vital ingredient in their
recipe for growth with 26% of survey respondents saying that increasing
customers is the most important aspect of business growth, followed
closely by increasing revenue (24%) and increasing profits (23%).
When looking at avenues to pursue growth, one-third cite expansion into
new markets (33%) and diversifying products and services (33%) as their
largest growth opportunities.
Networking Generates Greatest Return for Growth; Many Seek Out Peers
for Guidance
As business owners take initiative and seek out opportunities for
growth, they look to their peers for advice. Roughly half (49%) reported
proactively seeking out opportunities for growth by networking with
like-minded small business owners and business experts. In fact, 41%
indicated networking yields the greatest return for growth compared to
marketing or advertising activity.
Survey Methodology The American Express
OPEN Small Business Growth Pulse research is based on a random
online sample of 1,000 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 from August
3-31, 2015. The poll has a margin of error of +/- 3.1% at the 95% level
of confidence.
About American Express OPEN
American Express OPEN is the leading payment card issuer for small
businesses in the United States and supports business owners and
entrepreneurs with products and services to help them run and grow their
businesses. This includes business charge and credit cards that deliver
purchasing power, flexibility, rewards, savings on business services
from an expanded lineup of partners and online tools and services
designed to help improve profitability. Learn more at www.OPEN.com
and connect with us at openforum.com
and twitter.com/openforum.
American Express is a global services company, providing customers with
access to products, insights and experiences that enrich lives and build
business success. Learn more at americanexpress.com
and connect with us on facebook.com/americanexpress,
foursquare.com/americanexpress, linkedin.com/company/american-express,
twitter.com/americanexpress,
and youtube.com/americanexpress.
Key links to products and services: charge
and credit cards, business
credit cards, travel
services, gift
cards, prepaid
cards, merchant
services, business
travel, and corporate
card.
About Ebiquity, Plc.
Ebiquity are independent marketing performance specialists. Ebiquity
enables brands across the world to make better informed decisions to
improve their brand and business performance across integrated
communications channels. Learn more at ebiquity.com.
M Booth
Samantha Coulombe, 212-539-3272
Samanthac@mbooth.com
or
American Express
Heather Norton, 212-640-0496
Heather.A.Norton@aexp.com