Q4 2022 Small and Medium Sized Business Owner Survey
Monit's Q4 2022 SMB Pulse Survey found that overall, business owners remain optimistic about their business and its operating environment. How they are thinking about adapting to higher inflation, interest rates, and receivables management offers hints for where bankers can best support them.
May 26, 2023
Monit recently conducted its quarterly pulse survey of over 300 small business owners from across the US. The survey focused on monitoring shifts in owners' sentiment about the economy and operating environment, changes in business priorities, and tracking emerging needs. The results of this survey can be particularly useful for business bankers, as they provide insights that can help them make informed decisions about how to support small businesses and better tailor their solution to meet the evolving needs of their clients.
Key Highlights:
SMB owners continue to be a relatively optimistic group with 66% reporting the economy/operating environment improved vs. prior quarter. Further, 52% of owners reported increased customer demand over the same time period
59% of owners reported an increased appetite to invest in growth, up 9% since Q2 ’22. Where they’ll find funding for growth is less certain, with plans to use cash on hand, borrowing, and taking on new investors all down ~24% vs. prior quarter
Business owners continue to focus on receivables management, with 77% reporting paying closer attention vs. prior quarter
The hyper-competitive job market is still not cooling, with 52% of owners reporting it is harder or much hard to hire and retain a skilled workforce
SMBs continue to manage their cash well as Cash Coverage and median cash on hand remains stable, and above pre-pandemic levels
Actionable Considerations for Bankers:
Business owners are continuing to pursue growth opportunities and will look for additional financial support
Inflation and rate increases are top of mind, but not yet impacting borrowing appetite. There is likely room for credit growth despite more expensive borrowing costs
Focus on receivables management should lead to merchant services and treasury management opportunities
Reinforce the personal banking relationship; digital is a tool to augment, rather than replace how clients and bankers engage
To get a copy of the full report, please contact our Chief Customer Officer @ryan@monitapp.io
The Q4 ‘22 survey was conducted between January 10th through 12th and queried owners' perspectives of changes vs. the prior quarter. The survey included US based businesses, including small businesses with between $100K-10 million in revenues and mid-sized businesses between $10-100 million in revenues.
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