Small business owners remain cautiously optimistic about the future, according to a recent WSFS Bank survey that provides a detailed view of the challenges and opportunities shaping their landscape. Conducted among 597 small business decision-makers, including 351 from the Mid-Atlantic region and 246 from the broader U.S., the survey revealed positive sentiments regarding present and future business conditions.
Overall, 60 percent of respondents anticipate a slight or significant increase in revenue for 2025, reflecting renewed confidence in navigating economic challenges. While 46 percent of businesses reported experiencing revenue growth in the past year, the forward-looking optimism highlights small businesses’ resilience and adaptability.
The survey revealed that many small business owners are preparing for growth by making strategic investments. Among those surveyed, 26 percent plan to purchase equipment, 25 percent aim to obtain working capital, and 24 percent intend to fund expansions. These plans showcase proactive efforts to strengthen their businesses and seize opportunities for development.
“Small businesses have demonstrated remarkable adaptability in an environment where uncertainty has become the norm,” said Candice Caruso, Senior Vice President and Chief Business Banking Officer at WSFS Bank. “Many small business owners are planning ahead and transforming their businesses by embracing technology, refining operational efficiencies, and seeking new ways to serve their customers. We are proud of the role that WSFS plays in helping to propel these investments and keeping small businesses at the heart of the communities they serve.”
However, challenges persist. Inflation remains the top concern for 59 percent of respondents, while 45 percent cited the cost of living crisis, 31 percent pointed to the looming threat of a recession, 27 percent identified reduced consumer spending, and 23 percent reported supply chain disruptions. To navigate these hurdles, 54 percent of businesses have reduced non-essential spending, 27 percent have sought more affordable suppliers, and 25 percent have delayed non-essential investments to manage costs.
Access to financing is another area of focus for small businesses. While 30 percent of respondents found obtaining financing challenging, many business owners remain cautious about taking on new debt. Instead, they are prioritizing cash flow management and building cash reserves to weather economic uncertainty.
“As small businesses navigate an evolving economic landscape, it’s more important than ever to closely examine areas like debt management, strengthening vendor relationships, and exploring strategic financing options to fuel growth,” said Jeremy Shackleford, Senior Vice President and Director of Small Business Sales for WSFS Bank. “By taking these steps, small businesses can not only weather current challenges but better position themselves for the future.”
The survey also explored banking preferences and expectations. A majority of respondents, 53 percent, reported banking with large national banks, while 29 percent preferred regional banks, and 16 percent relied on small community banks. However, less than half felt they received adequate guidance from their banks in navigating economic uncertainty (46 percent) or business planning (47 percent).
The survey, conducted by market research firm Opinium between November 18 and December 2, 2024, provides valuable insights into how small businesses are adapting to the dynamic economic environment. With a margin of error of plus or minus 4 percent, the findings emphasize the resilience, resourcefulness, and strategic thinking that continue to define small businesses as they navigate challenges and seize opportunities for growth.