Microbusiness Survey: Improved Confidence, But Worry For Income Growth

BusinessCentral ArkansasNortheast ArkansasNorthwest ArkansasStartups / TechnologyTop Story - Startup

by Roby Brock ([email protected]) January 25, 2015 9:09 pm 114 views 

Microbusiness owners are expressing more confidence in economic conditions, but the ability to maintain or grow their personal income remains a top concern.

Sam’s Club and Gallup Polling surveyed 1,007 small business owners who qualified as microbusinesses – firms having 5 or fewer employees. The survey was conducted in late November and early December and reflects quarterly tracking of business leaders since December 2013.

The number of microbusiness owners saying they expect higher personal income in the next year is up 6.3% from this time last year, and those saying they expect the same level of personal income is up 8.2%. Meanwhile, those who say they expect less personal income from their business has dropped by more than half since Q4 2013, from 24% to 11.6%.

42.7% say the economy is improving while 51.8% say it is getting worse. A year ago, only 39.9% said the economy was improving, while 54.9% said conditions were worsening.

The cost of taxes remains the top concern for all microbusiness owners. Among Millenials (ages 18-34), 61.1% cited taxes as their major concern. Baby Boomers (ages 50-64) also listed taxes as their top concern with 64.7% ranking it priority number one.

Other key takeaways from the Sam’s Club/Gallup survey:

  • 90.3% of micro business owners say they have health insurance;
  • 25.5% of owners who don’t currently offer health insurance to employees expect to offer this in next 12 months;
  • 39.5% of owners are concerned about the cost of employee health care benefits increasing in next year.

Another interesting statistical measure in the survey listed the top funding sources for micro business financing:

  • Personal Savings – 60.6%
  • Credit Cards – 38.6%
  • Bank Loans – 28.9%
  • Retirement Savings – 27.5%
  • Money from Family, Friends – 20.8%
  • Sold Physical Asset, Equipment or Property – 20.7%
  • Credit From Supplier – 19.5%
  • Grant/Government Loan – 4%
  • Small Business Loan – 2.5%
  • Crowdfunding – 1.7%

You can access the full report, which is full of statistical and anecdotal data, at this link.