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WSFS Bank Survey Highlights Small Business Owners' Optimism Amid Economic Uncertainty

Small business owners across the United States are entering 2025 with renewed optimism, according to a recent survey conducted by WSFS Bank. The findings indicate that despite ongoing economic challenges, many small businesses are planning for growth, with 60% of respondents anticipating increased revenue in the coming year. This confidence highlights the resilience and adaptability of small businesses as they navigate a fluctuating economic landscape. A Focus on Strategic InvestmentsThe survey, which polled 597 small business decision-makers, reveals a strategic shift toward growth-focused investments. The most popular plans include purchasing new equipment (26%), obtaining working capital (25%), and funding business expansions (24%). These trends underscore a commitment to operational improvements and long-term growth. "Small businesses have shown remarkable resilience in an unpredictable economic climate," said Candice Caruso, Senior Vice President and Chief Business Banking Officer at WSFS Bank. "Many owners are proactively transforming their operations by embracing technology and refining efficiencies to better serve their customers." Challenges Persist but Adaptation Remains KeyEconomic hurdles remain significant, with 59% of respondents identifying inflation as their primary concern. Other key challenges include the cost-of-living crisis (45%), recession fears (31%), reduced consumer spending (27%), and supply chain disruptions (23%). To counter these challenges, 54% of respondents have reduced discretionary spending, while others have sought cost-effective suppliers (27%) or delayed non-essential investments. Jeremy Shackleford, Senior Vice President and Director of Small Business Sales for WSFS Bank, emphasized the importance of strategic planning: "Managing debt, strengthening vendor relationships, and exploring financing options are critical steps for small businesses to thrive in this environment. Building strong credit profiles and working closely with trusted advisors, like bankers and accountants, can provide a solid foundation for future growth." Banking Relationships: A Mixed PictureThe survey also examined small business owners' banking preferences, revealing that 53% bank with large national institutions, 29% with regional banks, and 16% with community banks. However, while 51% of respondents appreciated their bank's proactive tools and lending solutions, less than half felt adequately guided on business planning (47%) or economic uncertainty (46%). Caruso stressed the importance of tailored banking partnerships, stating, "Establishing clear expectations and maintaining regular communication with banking partners is essential. Proactive support can make all the difference as businesses prepare for economic headwinds." In-Person Interactions Still Preferred for Complex NeedsInterestingly, small business owners showed a strong preference for in-person banking when addressing complex issues like business planning (66%) and lending (62%). Routine services, such as obtaining credit cards, saw an even split among in-person, virtual, and impartial interactions, highlighting the diverse needs of today’s business owners. Resilience and Proactivity: Keys to Small Business SuccessThe survey results paint a clear picture: while economic uncertainties persist, small businesses are taking proactive steps to secure their futures. From investing in growth to building stronger relationships with their banking partners, the focus remains on navigating challenges and seizing opportunities in 2025. As Caruso aptly put it, "Small businesses are the backbone of our communities. By fostering strong partnerships and providing the right tools, we can help them not just survive, but thrive."

Posted on 1/22/25, 12:00:00 AM.000

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