Truist Survey: Small-Business Short-Term Focus Amid Long-Term Challenges

Despite facing inflation and economic uncertainty, small-business owners, particularly those in the Southeast, are grappling with immediate challenges rather than focusing on long-term strategies, reveals Truist's latest Small Business Pulse Survey. While experiencing heightened stress levels, these entrepreneurs maintain optimism about growth prospects in 2024 and anticipate improvements in their business conditions.

Scott Stearsman, Truist's head of small-business banking, said, "In recent years, our survey has shown the impact that economic uncertainty and high levels of stress can have on small-business owners regionally and nationally, but it has also shown the resiliency of the small businesses that serve our communities each and every day."

Short-term hurdles have hindered the formulation of comprehensive growth plans, with only 35 percent of surveyed small-business owners reporting the presence of formal strategies. Moreover, just 32 percent have shared these plans with external advisers such as CPAs or bankers, according to the survey.

Truist said this lack of planning potentially compromises their ability to address essential business aspects like prospecting and referrals, as well as their preparedness for unforeseen events such as economic downturns or natural disasters.

Financial worries continue to dominate the concerns of small-business owners, with rising costs, inflation, and economic uncertainty at the forefront. To mitigate these challenges, businesses have resorted to measures such as price increases, expense reductions, and accepting lower profitability. Additionally, attracting and retaining talent remains a significant concern, with demands for higher pay and healthcare benefits, according to Truist.

Despite these challenges, there are signs of improvement in business sentiment, driven by proactive measures taken by business owners and a gradual easing of inflation. Most small-business owners express a more positive outlook regarding their financial well-being compared to the previous year and anticipate improved business conditions in the coming year, Truist said.

However, prioritizing their businesses has taken a toll on the well-being of small-business owners themselves, as evidenced by increased stress levels and sacrifices such as reduced salaries. The Southeastern markets, including Atlanta, Orlando, and Nashville, exhibit higher stress levels compared to the national average, the survey found.