(Source:QuickBooks, Posted December 13, 2021)

After two record-breaking years of new business creation, QuickBooks forecasts the trend will continue in 2022, predicting up to 17 million new small businesses to be formed.*

These findings are highlighted in the QuickBooks New Business Insights report, based on a recent survey of 8,000 U.S. employees and owners.

• 86% | More than 8 in 10 people (86%) said that small businesses are crucial to the economy.
• 57% | More than half (57%) of surveyed respondents said they dream of owning their own business “to be my own boss” and “to have more control over my future” as their leading motivations for starting a business..
• 57% | Nearly 3 in 5 people in the U.S. (57%) said they intend to spend more money at small businesses over the next six months because they want to help local employers and enjoy the stellar customer service they get.
• 50% | 50% of respondents said they’ve spent more with small businesses during the pandemic.

“When the pandemic hit, we saw an unprecedented number of new businesses formed as millions of people spotted new opportunities brought on by the ‘new normal’ or reevaluated their priorities. Now, almost two years later, we’re continuing to see this trend, as 2022 promises to deliver even more small business growth and prosperity.”

Alex Chriss, executive vice president and general manager of Intuit’s Small Business and Self-Employed Group

QuickBooks also surveyed 2,000 U.S. small business owners to understand the top priorities for businesses in the new year.

According to the Small Business Insights report, small business owners overwhelmingly said they are focused on making the pivot to online permanent, already accelerated by the pandemic.

88% | Percentage of surveyed small business owners say online sales will be an important source of revenue in 2022.

97% | Small Business owners who say digital technology will be important to their business in 2022.

Some concerns and considerations of small business owners

Attracting and Retaining Talent. 

44% | Despite current challenges in hiring, 44% of small businesses said they will expand their workforce over the next three months. T

40% | Percentage of U.S. employees who say they are looking for new or different jobs.

46% | To retain talent, 46% plan to increase pay for existing employees.

36% | Other owners are offering larger bonuses.

Optimizing for Online. 

A top priority for those starting a business in 2022 is building a user-friendly website, with “increasing online sales” noted as the top priority of 40% of business owners. Notably, this isn’t limited to ecommerce businesses:

74% | Percentage of brick-and-mortar business owners who say online revenue is important.

33% | In addition to a website, social media is also proving to be vital for businesses, with revenue from social media accounting for a 33% of small business revenue, on average.

22% | Brick-and-mortar businesses get 22% of their sales via social media.

Concerns with Economic and Financial Issues

Inflation

97% | Business owners and consumers (97% each respectively) are worried about inflation.

45% | Among business owners, 45% cited “rising costs” as the largest threat their businesses face.

63% | To overcome this, nearly two-thirds of business owners (63%) are planning to raise prices over the next three months.

Shipping and the supply chain issues

71% | 71% of small businesses have experienced supply chain problems this year…however…

62% | Of those that have experienced issues, 62% of the surveyed owners say their problems have already been resolved or that they expect them to be resolved soon.

67% |  More than two-thirds of business owners (67%) plan to fund their new business with personal savings

49% | 49% will apply for a small business loan from a bank or financial institution.

*The projection of 17 million new businesses includes sole proprietors. When new businesses hire employees or incorporate, rather than remain as sole proprietors, they need an Employer Identification Number (EIN). QuickBooks projections based on U.S. Census Bureau data suggest there will be around 5.3 million EINs registered in 2021, significantly outpacing the previous record of 4.3 million set in 2020. The same projection predicts there will be 5.6 million new businesses in 2022.

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For more than 50 years, the U.S. Small Business Administration has celebrated National Small Business Week which recognizes the critical contributions of America’s small business owners.

This year’s Small Business Week will recognize the small businesses that have navigated the coronavirus pandemic while supporting their employees and communities.

This year is unlike the half-century that has come before. American small businesses continue to play a central role in building a strong country, prepared for any obstacles in the future.

More than half of Americans either own or work for a small business nearly two out of every three new jobs in the U.S. each year.

The SBA takes the opportunity to highlight the impact of small business owners, and others who support small businesses from all 50 states, Washington, D.C., and U.S. territories.

Virtual summit

Meet other business owners and get expert advice at this free 3-day summit.

National Small Business Week 3-Day Virtual Summit, hosted by the U.S. Small Business Administration, is happening Monday, September 13 – Wednesday, September 15, 2021 from 11:00 a.m. – 6:00 p.m. ET.

This year’s free event will spotlight the resilience of America’s entrepreneurs and the renewal of the small business economy as they build back better from the economic crisis brought on by a once-in-a-lifetime pandemic.

Register here

Note | While we are fans of the SBA, SmallBusiness.com is not affiliated with the US Small Business Administration.

The NFIB Small Business Optimism Index rose to 99.8 in April, an increase of 1.6 points from March. The Optimism Index has increased 4.8 points over the past three months since January but a record 44% of owners reported job openings that could not be filled.

“Small business owners are seeing a growth in sales but are stunted by not having enough workers. Finding qualified employees remains the biggest challenge for small businesses and is slowing economic growth. Owners are raising compensation, offering bonuses and benefits to attract the right employees.”

NFIB Chief Economist Bill Dunkelberg.

Other key findings:

• Eight of the 10 Index components improved and two declined.
• The NFIB Uncertainty Index decreased one point to 80.
• Earnings trends over the past three months improved eight points to a net negative 7%.
• Owners have plans to invest in their businesses as the percentage of those planning to make capital expenditures in the next three to six months increased seven points to 27%.
• The percent of owners expecting better business conditions over the next six months fell seven points to a net negative 15%, surprisingly glum.

47% | Percent reported capital outlays in the last six months, down two points from March but 10 points above last year’s low. Of those making expenditures, 42% reported spending on new equipment, 25% acquired new vehicles, and 15% improved or expanded facilities.

6% | Prtcentage of those surveyed who acquired new buildings or land for expansion and 12% spent money for new fixtures and furniture. Twenty-seven percent plan capital outlays in the next few months. Hopefully supportive of improved productivity.

3% | Percentage of all owners (seasonally adjusted) reported higher nominal sales in the past three months, up nine points from March. The net percent of owners expecting higher real sales volumes improved one point to a net 1%.

7% | Percentage of owners who view current inventory stocks as “too low” in April, up to four points. A net 5% of owners plan inventory investment in the coming months, up to one point from March.

Full report at NFIB.com | https://assets.nfib.com/nfibcom/SBET-Apr-2021.pdf (PDF)

As part of this year’s National Small Business Week, the U.S. Small Business Administration will host an “all virtual” event. Next week’s events (September 22-24, 2020) will include numerous educational panels providing retooling and innovative practices for the nation’s small businesses who are seeking to “pivot and recover, contributing to a stronger economy,” according to the SBA.

The National Small Business Week event schedule includes three days recognizing America’s outstanding entrepreneurs, shining a spotlight on the nation’s 30 million small businesses across the country. The event will also recognize the national award winners, including the naming of the National Small Business Person of the Year.

Information about and free registration to the streaming sessions can be found here: SBA.GOV/NSBA

Tuesday, September 22, 1 p.m. EDT 

“Pride in America’s Small Businesses”

Day’s events include | National Small Business Week Welcome
SBA Administrator Jovita Carranza | Keynote Address

National Small Business Week Awards Presentations

Wednesday, September 23, 9 a.m. EDT

“Preparing for a stronger tomorrow: Recovery, Adaptation, and Innovation”

Day’s events include | Panel Discussion Series | America’s Strength, Learning to Pivot and Innovate

Mid-day Sessions | SBA’s Veteran Resources and Veteran Success Story Videos

Thursday, September 24, 9 a.m. EDT 

“Preparing for a stronger tomorrow: Recovery, Adaptation, and Innovation”

Day’s events include |Panel Discussion Series – America’s Strength, Learning to Pivot and Innovate

Mid-day Sessions | “The Business Landscape of today and Federal and Local Resources to Empower Small Businesses”

What is National Small Business Week?

Jovita Carranza
SBA Administrator 

For more than 50 years, the SBA has celebrated National Small Business Week (NSBW), which recognizes the critical contributions of America’s entrepreneurs and small business owners.

This year is one unlike the half-century that has come before.

We are facing unique challenges together. However, American small businesses continue to play a central role in building a strong country, prepared for any obstacles in the future.

More than half of Americans either own or work for a small business, and they create nearly two out of every three new jobs in the U.S. each year. As part of NSBW, the SBA takes the opportunity to highlight the impact of outstanding entrepreneurs, small business owners, and others who support entrepreneurship from all 50 states, Washington, D.C. and U.S. territories.

Additionally, this year’s NSBW will recognize the small businesses who have navigated the coronavirus pandemic while supporting their employees and communities. There will be a number of presenters providing retooling and innovative practices for entrepreneurs as our nation’s small businesses look to pivot and recover towards a stronger economy.

Every day, they’re working to grow small businesses, create 21st-century jobs, drive innovation, and increase America’s global competitiveness.

Perception
60% | Percentage of small business owners who believe their revenue growth underperforms the growth of their peers.

Reality
74% | Percentage of small business owners whose growth actually exceeds the revenue growth of their peers.

Together, the findings suggest that small business owners may have unwarranted self-doubt about the financial health of their businesses. The comparison also reveals that small businesses may have difficulty accurately comparing their businesses to others.

There is a perception that entrepreneurs are often overconfident, says University of California-Berkeley professor Don Moore. “(But) this study shows the potential for small business owners to err on the side of under-estimating their performance when comparing themselves to others.”

11% | Percentage of survey respondents able to correctly estimate the ranking of their revenue performance.

“People who demonstrate underconfidence are more likely to opt-out of or choose to exit a competition when, in fact, they would have succeeded had they persisted,” says Moore. “Providing them access to benchmarking systems and analysis on par with what’s available to large and public companies may reduce anxiety and help them calibrate strategic business decisions.”

​Why do small business owners underestimate themselves?

“The likely reason for this is that people tend to rate themselves below average on difficult tasks,” says Moore. “Simply put, people assume they’re worse than others when a task is hard. Running a small business (is a) difficult task, and respondents showed underconfidence.”

We rarely use infographics created by others. However, we are fans of the SBA Office of Advocacy and their ongoing surveys. By the way, “Advocacy” (which it is often called in Washington) was created to be an independent voice for small business within the federal government. So while it has “SBA” in its name, in many ways, it is independent of the SBA. It is also the watchdog for the Regulatory Flexibility Act (RFA) and the source of small business statistics. Advocacy advances the views and concerns of small business before Congress, the White House, the federal agencies, the federal courts, and state policymakers. 

See also on SmallBusiness.com

Answers to 20 of the Most Frequently Asked Questions About U.S. Small Business

From “What is a small business?” to “How do most small businesses get funded?” the 20 most asked questions about small business.

Infographic and Sources: SBA Office of Advocacy
Photo: GettyImages

Every year since 1963, the President of the United States has issued a proclamation announcing National Small Business Week. This week recognizes the contributions of America’s small business owners. This year, that week begins today. We think it is wonderful to have such a week and want to thank the Small Business Administration (SBA) and all of the sponsors of Small Business Week for their participation.

During this week, you will hear small businesses are the lifeblood of our economy, employing half of our country’s workforce and creating nearly two out of every three new American jobs. The size of small business, when viewed as one big institution, is staggering. But we think there’s something even more staggering…

(Photo by Stavos via Flickr)

We think the most amazing statistic is the  number of customers who shop at small businesses, or who hire small businesses to provide them all forms of professional and personal services. At last count, that number was more than 320 million.

(Photo by Stavos via Flickr)

While small businesses create jobs, there’s another thing that small businesses and their customers do that’s equally important: They create communities.

And we’re not talking about the online virtual kind of communities, but the real kind of communities where you’ll find the name of a small business on the back of your child’s soccer jersey.

(Photo by Stavos via Flickr)

So, in addition to celebrating small businesses this week, we’d like to also celebrate small business customers—those who choose to support local and small businesses not just during one week, or one day, but throughout the year.

Thank you, customers who make it a point to support small retailers, manufacturers, farmers, artisans, service providers, and on-and-on…

By supporting small businesses, you too are the lifeblood of the economy. You make the job-creating engine work.

(Photos from the awesome Flickr album, Larry’s Store. by stavos. [CC BY-NC-ND 2.0])

(Originally published on SmallBusiness.com, May, 2014)

Self-employed small business owners are struggling to grow their business amid fierce competition and a lack of time or money to invest in their business, according to a survey released by QuickBooks Self-Employed. However, despite such challenges, 78 percent of these small business owners say it’s a good time for other people to start a business.

Here are some of the findings of the national survey of 753 self-employed small business owners.

The economy

66% | Percentage of self-employed small business owners who say they feel financially insecure
60% | Believe the economy is good
47% | Are concerned about the negative impact a recession would have on their business

Competition

85% | Percentage of self-employed small business owners who say they are experiencing more competition now than ever before
71% | Say competition is affecting their business

Optimism

78% | Percentage of self-employed small business owners who say it’s a good time for other people to start a business

Challenges

14% | Percentage of self-employed small business owners who say they work more than 50 hours per week
27% | Say their business is currently growing above a steady rate
13% | Say they consistently meet their growth goals
31% | Blame a lack of money as their biggest challenge to growth

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Update: 2.13.2019: If you’ve missed them, here are some heart shaped articles we’ve posted on earlier Valentine’s Days. We hope your small business is filled with love every day!

4 Ways Successful Business-Partner Couples Balance Love and Work

Together, We Can Do So Much

Office Romances Are at a Decade-Long High

Are Americans Losing Their Love of Valentine’s Day?

Under-30-year-old small business owners are finding new ways to make self-employment and small business ownership more rewarding—and more successful — according to a recent survey of 1,005 small business owners by the bookkeeping company Bench. The surveyed business owners ranged from freelancers to companies with up to 10 employees

Here are some of the survey’s findings.

Owner motivation

• 20% | Percentage of business owners under-30 say they go into business “to make a difference in the world.”
• 56% | Percentage of small business owners (all ages) who said they started a business so they could be their own boss

Ownership reality

• 60% | Percentage of business owners who believe that owning a business IS NOT  an easy way to get rich
• 56% | Percentage of business owners who believe that owning a business IS NOT a guarantee for freedom

Finances and stress

Under-30 small business owners in the survey sa financial administration including bookkeeping and taxes, are the most stressful part of their job.

• 20% | Percentage of under-30 business owners who admit they don’t understand their business finances
• 17% | Percentage of under-30 business owners who outsource their bookkeeping
• 9% | Percentage of over-45 business owners who outsource their bookkeeping

Small business owners would rather be stung by a bee than do a month of bookkeeping

Of all the tasks that under-30 small businesses are responsible for, bookkeeping is the activity dislike most.

• 46% | Percentage of small business owners who would rather get stung by a bee than do a month of bookkeeping
• 30% | Small Business owners who feel they have a confident understanding of their business finances
• 28% | Percentage of small business owners who would choose to offload bookkeeping over any other to-do, including web development
• 72% | Percentage of small business owners who still do their own bookkeeping

More findings from the survey can be found at Bench.co.

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