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PRNewswire 3-Apr-2019 8:30 AM
MCLEAN, Va., April 3, 2019 /PRNewswire/ -- Two-thirds (66 percent) of small business owners (SBOs) say recent fluctuations in the stock market have not changed their business outlook, according to Capital One's (NYSE:COF) latest Small Business Growth Index, a biannual survey of 500 small business owners (SBOs) gauging sentiment related to the economy, business conditions and plans for growth. At the same time, nearly half (49 percent) of SBOs are concerned that a recession could impact the overall success of their company in the next year.
"Small business owners remain cautiously optimistic," said Jenn Flynn, head of small business bank at Capital One. "While we saw a slight dip in optimism compared to Fall 2018, small business owners are still making strategic investments in their businesses, while paying close attention to the uncertainty in the stock market and evaluating the potential impact of a recession."
Following are key themes uncovered by the Spring 2019 Small Business Growth Index:
Small business owners think stock market volatility will impact their business, but many have yet to feel the effect.
The economy and a tight labor market are impacting small businesses' ability to hire, while those who plan to hire are competing for talent with their pocketbooks.
Half of the respondents feel the tax plan has been generally positive for small businesses, yet many feel they will actually pay more in taxes.
Business owners are split on how they'll be impacted by artificial intelligence and machine learning
"Change is a constant for small business owners, and it's encouraging to see leaders remain resilient as they interpret new things like tax reform and the impact of technology," said Brad Jiulianti, head of small business card at Capital One. "We look forward to seeing how business owners continue to innovate to meet the changing needs of today's marketplace."
Survey Methodology
Capital One's Spring 2019 Small Business Growth Index Survey was conducted by the market research and business intelligence firm Engine (formerly ORC International). For this telephone study, Engine interviewed a national sample of 500 for-profit small businesses in the U.S. Small businesses are defined as those with a total annual revenue less than $10 million. Interviews were conducted from February 4-25, 2019. One respondent per business was interviewed. The margin of error is +/- 4.38 percentage points at a 95% confidence level.
Engine also interviewed a national sample of 200 for-profit small businesses in the U.S. These small businesses are defined as those with a total annual revenue of $1 million to $10 million. Interviews were conducted from February 26- March 11, 2019. One respondent per business was interviewed. The margin of error is +/- 6.93 percentage points at a 95% confidence level.
About Capital One Spark Business
Capital One® offers a broad spectrum of financial products and services to consumers, small businesses, and commercial clients. Spark Business® from Capital One offers a diverse suite of financial products, tools and services designed specifically for small businesses, including credit cards with unlimited rewards, banking products and services and Business CreditWise?, a free business credit report tool. Today, Spark Business works to address the unique needs of millions of business owners across the U.S., so they can focus on what they are most passionate about – running and growing their business.
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SOURCE Capital One