56% of small biz owners expect overall revenue to increase this year
Of those anticipating this growth, 42% believe their own revenue growth will exceed 20%.
There’s a disconnect in the economic attitude of small- to medium-sized business owners (SMB) in America. According to the Thryv 2023 Small Business Index Report, 70% of people believe the larger economy will remain flat or decline over the next six months, but more than half (56%) expect their overall revenue to increase this year. Of those anticipating this growth, 42% believe their own revenue growth will exceed 20%.
The same positive outlook can be found in those with $500,000+ yearly revenue. Moreover, SMBs that invest in technology, more specifically, those spending more than $200 per month on software, report being more optimistic. Sector, size, location and longevity all impact how many SMBs expect their industry outlook to improve in the next six months. The entertainment industry sees the highest level of optimism (61%) and business services the least (39%).
Other industries that expect their revenue to grow in the next six months include 47% of personal services SMBs, construction at 42% and business services at 39%.
Additionally, newer businesses are more likely to be optimistic about the next six months. Forty-six percent of businesses that have started since 2021 expect their own industry outlook to improve compared to only 31% of businesses in operation 21 years or longer
For the small businesses in the survey, this context means burnout is looming — 86% of owners clock more than 40 hours per week. But, while small businesses are overextended, owners are in it for the long haul.
Interestingly, the more employees, the greater the demand on owners — 91% of respondents with more than 10 employees work more than 40 hours per week, compared to 74% of “solopreneurs.” Age matters too, especially with younger generations. Gen Z and millennials are putting in the hours. Nearly 90% of business owners aged 21-34 are working more than 40 hours per week as opposed to 78% for owners aged 55+.
More importantly, 55% of the time that owners work is not focused on customer-related activities. Meaning, they are unable to do the work that matters most to them, which could potentially impact their bottom line.
Related: How small business owners can craft the right benefits package
Yet despite these obstacles, most owners do not show signs of quitting. A majority (68%) wish to continue operating their business until they retire, with 41% stating they have children waiting to take over the business.