87 Percent of Small Businesses Report Steady or Increased Capital Spending

Friday 21 May 2004 19:43 CET | News

MasterCard has released results of a Small Business Economic and Spend Outlook Survey, which found that small businesses view managing expenses and finances as the most pressing concerns this year.

The survey, also showed that small businesses are highly optimistic, as the vast majority has no plans to decrease either capital expenditures or travel and entertainment (T&E) spending in the coming year. The Small Business Economic and Spend Outlook Survey polled U.S. businesses with annual revenue between $100,000 - $10,000,000. The survey addresses a variety of topics, including: - U.S. Economy and Impact on Small Businesses - Concerns for the Coming Year - Small Business Procurement Opportunities - Capital Spending in the Small Business Market - T&E Spending in the Small Business Market - Trends in Small Business Payment Management U.S. Economy and Impact on Small Businesses Small business confidence is high in terms of how overall U.S. economic growth will impact business in the near future: - 56 percent of respondents believe changes in the U.S. economy will have a positive impact on their business in the next 12 months; a minority of small businesses (12 percent) expect changes in the U.S. economy will have a negative impact on business in the coming year. - 33 percent of those surveyed believe economic growth has had a positive impact on business; about 53 percent of respondents said that recent growth in the U.S. economy has had no noticeable impact on their business. Concerns for the Coming Year MasterCards survey shows that a variety of issues are top of mind in the coming year, though some have greater impact: - Managing expenses/finances was cited by more than 27 percent of respondents as the number one concern facing small businesses. The business ability to manage profitable growth was also a significant concern, named by 23 percent of those surveyed. - Almost 19 percent of small businesses see recruiting and retaining qualified employees as a significant concern. Small Business Procurement Opportunities The survey showed small businesses may be missing a huge sales opportunity by failing to leverage programs that assist in selling to governments and large corporations. This is despite the fact that in the U.S. alone, government purchases are worth almost $250 billion each year. The new MasterCard Procurement Opportunities Guide: An Entrepreneurs Guide to Selling to Governments and Corporations, announced today, addresses these issues by providing small businesses in the United States with detailed information that assists them in marketing products and services to large corporations and state, federal and foreign governments: - While almost one-fifth of respondents (18 percent) view government procurement programs as an opportunity for significant future growth, more than a third (38 percent) did not know the potential such programs could offer. - While more than one-third of respondents (39 percent) are aware of programs that provide small businesses with an opportunity to sell to governments and large corporation, further education is necessary, as almost 62 percent were unaware of such opportunities. Capital Spending in the Small Business Market In general, small businesses are hopeful about their ability to make capital expenditures, with even greater confidence in their ability to do so in the future: - The vast majority of respondents (87 percent) report that capital spending has increased or remained steady in the past six months; only 13 percent report recent decreases in capital spending. - More than 92 percent of small businesses surveyed expect capital spending to increase or remain steady in the coming year; only 8 percent anticipate any cutbacks in capital spending. Travel and Entertainment Spending in the Small Business Market Similar to capital spending findings, t

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Categories: Payments & Commerce | Payments General
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