This summer, my inbox has been crammed with surveys and reports on small business attitudes, activities, and best practices. Let’s take a look at a few.
How financially confident are small business owners?
Are you feeling financially confident? Just less than half (49%) of the small business owners surveyed in the second Small Business Financial Confidence Report from American Express say they’re “very confident” in their ability to make sound growth decisions, down from 54% in the inaugural survey released last spring.
The reasons given for the decline in confidence were:
- The current economy: 80%, with 35% particularly concerned about inflation, and 72% worried inflation will be worse or the same in 2024.
- Operating costs: 34%
- Labor costs: 31%
- Consumer spending: 26%
What are small business's perceptions of AI?
The Small Business Confidence Report also found that small business owners are more interested in artificial intelligence (AI) than they were in the spring. Of those who aren’t currently prioritizing AI, 25% say they would consider using it in the future, up from 20%. But among the business owners who aren’t considering using AI, 43% say they simply don’t trust the technology.
However, that may not be the best attitude if you want to succeed. The latest Small Business Now: An AI Awakening report from Constant Contact reveals there’s a “strong correlation between the implementation of AI and a company’s overall success.” The findings show that 91% of businesses currently using AI say it’s made their businesses more successful. They use it to regain valuable time, reduce manual mistakes, and grow faster. And they think AI pays off financially—28% expect AI and automation to save them at least $5,000 over the next 12 months.
One area AI where AI has shown a lot of promise is marketing:
- 70% of business owners would pay more for a marketing platform that gave them access to AI or automation tools.
- 60% of current AI users say the time savings it delivers enables them to work more efficiently.
- 33% estimate that using AI or other automation saves them more than 40 minutes a week on marketing.
Many of the small business owners surveyed understand the potential of AI but still have some questions:
- While 74% say they’re interested in using AI or automation, 46% only have a beginner’s understanding of the benefits of these technologies.
- 52% say social media is the marketing area they most want to improve in the next 12 months.
- The top concerns small businesses have about AI are data security, perceived cost, and the learning curve.
The state of Gen Z entrepreneurs
Even though the Gen Z Entrepreneur Report from Square reveals that 72% of Generation Z believes their generation has had fewer economic opportunities than previous ones, they have entered the entrepreneurial fray:
- Gen Z entrepreneurs are ambitious:
- 39% want to earn enough money to start another business or side hustle.
- 39% already own businesses with five or more employees.
- 45% used their savings to fund their businesses (53% of women compared to 38% of men).
- 80% started their businesses online or had a mobile component
- Another 46% launched their businesses with a physical location for omnichannel operations.
What to know about your Gen Z employees
If you have Gen Z workers, it’s essential to know what they’re looking for from their employers. The Young Adults and Workplace Wellness Survey from Georgetown University and Bank of America shows that the reasons Gen Z (and younger millennial) workers want to change jobs include paid time off (65%) and a flexible work schedule (58%). Most (73%) also want benefits that can travel with them if they change jobs.
Additional findings include:
- Gen Z workers are struggling financially and aren’t optimistic about retirement—44% have outstanding student loans or consumer debt, and 49% of that group say paying off the debt is a greater priority than saving for retirement.
- They want better workplace wellness programs. Only 24% “strongly agree” that their employer has policies or structures in place to support work-life balance.
- Young workers are not loyal—68% view work mainly as a way to make a living but not as a part of their identity or personal fulfillment. And 54% plan to switch to another field or career—46% within the next year.
