In a recent survey published by Amex, small business owners have cited cash flow and pricing as their concerns for the year. The third edition of the “Amex Trendex: Small Business Edition” surveyed 1,127 SMB decision-makers, including 514 businesses with 10 employees or less, 412 businesses with 11 to 100 employees and 201 businesses with 101 to 500 employees.
Top concerns by SMB owner respondents have been consistent over the last year, with 44 percent citing pricing and price hikes and 35 percent citing cash-flow forecasting. Moreover, 68 percent of people surveyed said they wish they had more time to focus on their products and services and managing their business’ finances.
But despite these economic setbacks and the wider global turmoil, the SMBs across the board said they remain optimistic given their “personal drive” and “long-term ambitions.” Ninety-five percent of SMB owners noted their satisfaction with starting their company.
“Small business owners are concerned about issues like pricing and cash-flow forecasting, but they are overwhelmingly happy that they chose their career path as an entrepreneur, and most intend to be small business owners for the long run,” said Gina Taylor Cotter, executive vice president and general manager of small business products and business blueprint at American Express.
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Regarding these long-term ambitions, SMBs reported (60 percent) that they anticipate their businesses to last longer than five years and see the venture continuing down the road. Long-term business goals include longevity (49 percent), becoming an established industry leader (32 percent) and growing employee base (24 percent).
The decisions behind wanting to start SMBs come from personal passion (84 percent), seeing a need in their community (65 percent), supporting their family and future generations (59 percent) and the need for flexible work (44 percent).
SMBs from the Millennial and Generation Z demographic reported that they learned entrepreneurship online or on social media (56 percent) versus Gen X and Boomers who knew an entrepreneur personally (47 percent).
Notably, 74 percent of Gen X and Boomer SMB owners surveyed said they first had a traditional job in the private sector, government or another role in their current business before their company. Meanwhile, Millennials and Gen Z are more likely to start their business out of school — 20 percent said they were students or unemployed before starting their business.
One-third (33 percent) of Millennials and Gen Z cited technology solutions as a major reliance on helping SMBs navigate the challenges of the past few years of the pandemic and inflation.
Despite earlier reports that “88 percent of Generation Z SMB owners are looking to expand their e-commerce operations,” the report’s authors noted that Gen Z and Millennials are the most skeptical about what it takes to be a successful entrepreneur. They shared that they think that “you have to be wealthy to start a business,” “true entrepreneurs do it alone and “entrepreneurs are born and not made.”