Most Small Businesses Expect to See Revenue Increase: Survey

The US Chamber of Commerce building in Washington on May 10, 2021. (Reuters/Andrew Kelly)

The majority of small businesses, 73 percent, are expecting revenue increases next year, according to a nationwide survey.

This marks the highest reading since MetLife and the U.S. Chamber of Commerce began the survey in 2017, and the federal government is reporting growing optimism on the part of small businesses. The second-quarter 2024 survey was conducted from April 19 to May 6.

“Main Street employers are showing confidence and resiliency in the face of persistent inflation,” stated Tom Sullivan, vice president of Small Business Policy at the U.S. Chamber of Commerce, pointing to increased cash flow as a key reason for this optimism.

Now up 10 percentage points from last quarter, 46 percent of small businesses say they expect to increase investment next year. In addition, 73 percent of small businesses are comfortable with their cash flow and 22 percent increased staffing in the past year.

Small businesses were also polled about concerns, and 55 percent of respondents said inflation was the biggest challenge. Inflation has remained top of the list every quarter since the beginning of 2022. About a third of small businesses, 36 percent, say the U.S. economy is in good health, while 42 percent say their local economies are in good health.

Optimism for AI

Small businesses were also polled on their views of artificial intelligence (AI) and gave a mostly positive response.

The majority, 71 percent, believe hiring employees with skills in AI will help them save time in the long run, and 67 percent it will help save money in the long run.

Small businesses with larger staff had more concerns about bringing employees up to speed, with 65 percent of businesses with 20 to 500 employees expressing concern compared to 47 percent of businesses with five to 19 employees.

Most, 87 percent, said they were already familiar with AI, and 65 percent said they expect AI to change their staffing roles in the future. Nearly half, 49 percent, say they plan to try AI tools in the next year, and 40 percent already have.

Michael Canty, president and CEO of Alloy Precision Technologies Inc., in Mentor, Ohio, said in a statement that he has begun AI training in his own company.

“I have read about 2,000 pages to learn more, assigned my senior team to the development of AI uses at our company, and we have begun to use it in lead generation, vendor identification, the development of marketing materials, and a few other applications,” Mr. Canty stated.

According to the Chamber of Commerce, optimism about AI outweighs concerns small-business owners have about the technology, with younger generations displaying the most positive outlook.

Percentages of small businesses engaging with artificial intelligence, separated by generation. (Source: U.S. Chamber of Commerce)