WSFS Bank Survey Reveals Optimism Among Small Business Owners Despite Economic Challenges

A new survey conducted by WSFS Bank highlights growing optimism among small business owners for the year ahead, with 60% of respondents anticipating a slight or significant increase in revenue for 2025. Despite economic hurdles over the past two years, many small business owners plan to pursue financing to invest in growth and operational improvements.

The survey, which polled 597 small business decision makers, found that owners are preparing for growth. Among those surveyed, the most common planned investments include purchasing equipment (26%), obtaining working capital (25%), and funding expansions (24%). These trends reflect a renewed confidence in navigating economic challenges.

“Small businesses have demonstrated remarkable adaptability in an environment where uncertainty has become the norm,” said Candice Caruso, Senior Vice President, Chief Business Banking Officer at WSFS Bank. “Many small business owners are planning ahead and transforming their businesses by embracing technology, refining operational efficiencies, and seeking new ways to serve their customers. We are proud of the role that WSFS plays in helping to propel these investments and keeping small businesses at the heart of the communities they serve.”

The past two years have presented significant obstacles for small businesses, with 59% of respondents citing rising inflation as a primary challenge. Other key issues included the cost of living crisis (45%), the looming threat of a recession (31%), reduced consumer spending (27%), and supply chain disruptions (23%).

In response to these challenges, 54% of respondents have reduced non-essential spending, while 27% have turned to more affordable suppliers. One-quarter of respondents have delayed non-essential investments to manage economic pressures.

“As small businesses navigate an evolving economic landscape, it’s more important than ever to closely examine areas like debt management, strengthening vendor relationships, and exploring strategic financing options to fuel growth,” said Jeremy Shackleford, Senior Vice President, Director of Small Business Sales for WSFS Bank. “Additionally, businesses should continue to monitor and build their credit profiles, as well as work with trusted partners, like their banker and accountant, to identify opportunities for cost savings. By taking these steps, small businesses can not only weather current challenges but better position themselves for the future.”

The survey also explored small business owners’ banking preferences and expectations. A majority (53%) reported banking with large national banks, while 29% preferred regional banks, and 16% used small community banks. Over half of respondents (53%) sought assistance with business credit cards, followed by cash flow management (38%) and capital for growth (36%).

While 51% of respondents noted their bank’s proactivity in providing tools and lending solutions, less than half reported receiving sufficient guidance on navigating economic uncertainty (46%) or business planning (47%).

“The last several years have taught us to expect the unexpected. As a regional bank, we work to form strong partnerships with our small business Clients to best serve their needs with intimate knowledge of the communities where they operate and the local decision-making capabilities to help them reach their goals,” Caruso explained. “It’s key at the onset of your banking relationship to establish expectations and reevaluate those regularly. When it comes to preparing for economic headwinds and long-term planning, proactive support from a banking partner is a must.”

When interacting with their banker, small business owners showed varying preferences. For routine services, such as obtaining business credit cards, preferences were evenly split among in-person (35%), virtual (32%), and impartial (34%). However, for more customized services like business planning and lending, the majority preferred in-person meetings (66% and 62%, respectively).

The survey was conducted by market research firm Opinium between November 18 and December 2, 2024. It included 597 small business owners and decision makers, with 351 respondents from the Mid-Atlantic region and 246 from the broader U.S. The margin of error is +/- 4%.

This article, "WSFS Bank Survey Reveals Optimism Among Small Business Owners Despite Economic Challenges" was first published on Small Business Trends