Business
Small Businesses Feeling the Impacts of the Economy and Inflation, But Are Still Optimistic About Future Revenue, New WSFS Bank Study Finds
Seven in 10 feel they are well positioned to borrow, with equipment financing being their top need. WILMINGTON, Del., Nov. 17, 2022 (GLOBE NEWSWIRE) --
About this update from Wsfs Financial Corporation
[{"type":"text","content":"Seven in 10 feel they are well positioned to borrow, with equipment financing being their top need. WILMINGTON, Del., Nov. 17, 2022 (GLOBE NEWSWIRE) -- Mid-Atlantic small businesses are optimistic in their ability to keep revenues at their current pace or even increase them in the next year despite economic woes and strains on their costs, a new WSFS Bank Small Business Trends study found. The study, which surveyed 500 Mid-Atlantic small businesses, measured owner/operators’ outlook on the economy, the impact of inflation and other stressors on their businesses, and their banking relationships and lending needs. Optimism for Their Business’ FutureOverall, 83% of small business owners and leaders believe revenue will improve or stay the same within the next 12 months. Of those, more than half (54%) expect improvement. However, the same cannot be said for their confidence in the economy over the next six months, as 43% feel the Mid-Atlantic economy will improve and only 34% feel the same about the national economy. Despite this lack of confidence in the economy and numerous setbacks—including rising costs for materials and gas—for their businesses, 76% are optimistic their business will still be operating in 12 months, with 69% feeling prepared to “weather another storm.” Inflation, Operations and HealthSetbacks to their businesses experienced over the past two years remain significant obstacles to success, however. Sixty-one percent felt negative impacts of the pandemic, with 48% having employees and/or family contracting COVID-19 causing stress on the business. More than half (52%) cited rising inflation having a negative impact. Increased costs for materials and operations have affected 54% of small businesses surveyed, and nearly four in 10 (38%) are feeling the crunch of gas prices, too. “While it is encouraging to see overall optimism among small businesses, the impacts of rising business costs, coupled with health issues in an environment where it is difficult to find and retain workers, is concerning,” said Candice Caruso, Senior Vice President, Chief Retail Lending Officer for WSFS Bank. “These findings underscore the importance of supporting small businesses in our communities not only this holiday season, but throughout the year. Small businesses are the lifeblood to the U.S. economy and support our communities through ...