Nearly three-quarters (73%) of American small business owners reported growth over the past year, with even higher rates among Black (84%) and Hispanic (80%) owners, according to the U.S. Bank 2024 Small Business Perspective report released today. This report, based on a survey of over 1,000 small business owners, delves into the challenges these owners face in the current macroeconomic environment, including employee retention, the impact of artificial intelligence (AI), and overall business operations. Additionally, the report includes insights from small business employees to provide a comprehensive view of the small business landscape.
The survey findings indicate that while many small businesses are experiencing growth, they also face significant labor challenges. Over half (52%) of owners reported being understaffed, 77% noted the increasingly competitive labor market, and 65% are struggling to raise salaries to keep up with inflation. To address these issues, 83% of business owners plan to offer flexible hours to improve work-life balance, and many are adopting digital tools to help reach their business goals, with 75% planning to focus on these tools in the coming year.
Small business owners are also increasingly embracing AI and automation, with nearly 68% recognizing their benefits and 60% already implementing AI or automated solutions. However, concerns remain, as 47% of owners worry their businesses could be replaced by automation. Similarly, nearly half of employees (48%) express uncertainty about how automation will impact their roles, with 25% fearing their jobs could be replaced.
Despite these challenges, small business owners demonstrate resilience and optimism. As Shruti Patel, Chief Product Officer for Business Banking at U.S. Bank, noted, “The survey reinforces the importance of digital tools in increasing efficiency and productivity. U.S. Bank is committed to providing seamless, integrated experiences across banking and payments to help streamline cash flow and operations.”
The report also highlights the top macroeconomic stressors for small business owners, including competition (73%), the economic environment (71%), inflation (65%), supply chain disruptions (47%), and securing sufficient funding (42%). These factors have notably delayed business growth for nearly half of the respondents, particularly those citing economic and inflation-related pressures. Nonetheless, the majority of owners remain open to adopting digital and AI-driven solutions in the coming year to navigate these challenges and continue their growth trajectories.
For More Details: https://insightssuccess.com/
