# Small Business Economic Outlook in 2024
The economic outlook for small business owners in 2024 is filled with opportunities and challenges. According to the recently released **2024 Bank of America Business Owner Report**, 65% of small business owners expect their revenues to grow this year, with 55% reporting increased earnings in 2023 compared to 2022.
## Positive Trajectory
Small business owners are planning to expand their businesses (39%) and hire more employees (30%) over the next 12 months. While these numbers are slightly down from last year, they still show a positive trajectory for small businesses.
## Concerns About the Economy
Although small business owners are optimistic about their own companies, they are more cautious about the national economy. Only 33% expect it to improve over the next 12 months. Concerns about the political environment, inflation, and higher interest rates are still prevalent among small business owners.
## Economic Concerns
Small business owners continue to be concerned about various economic factors such as inflation, healthcare costs, interest rates, commodities prices, and more. These concerns impact their business decisions and planning for the future.
– Inflation—73%
– Healthcare costs—69%
– Interest rates—63%
– Commodities prices—61%
– Recession—56%
## Obtaining Funding
Obtaining funding is a crucial aspect for small businesses, with 71% planning to seek funding this year. However, the percentage of small businesses planning to apply for a bank loan or line of credit has decreased from last year.
## Credit Cards
A separate report from the Bank of America Institute shows that small businesses have become more reliant on credit cards, with balances increasing. Despite rising balances, credit card usage is comparable to previous years when adjusted for inflation.
# Running and Growing a Small Business
## Driving Customer Engagement
Small business owners are prioritizing customer engagement strategies to attract and retain customers. By offering a unique customer experience, humanizing their business, and using personalized interactions, small business owners are enhancing customer relationships and brand awareness.
– Personalized customer interactions—80%
– Implementing customer feedback—48%
– Direct marketing (direct mail and email newsletters)—38%
– Hosting community events—24%
– Loyalty awards/programs—23%
## Gathering Customer Feedback
Gathering customer feedback is essential for small business owners to improve their products and services. Monitoring online review platforms, compiling feedback, and requesting feedback in-person are common practices among small businesses.
– Monitor online review platforms—48%
– Compiling feedback in an email inbox—41%
– Requesting feedback in-person at the store—40%
– Sending email customer service surveys post-purchase—30%
## Digitization
Small business owners are embracing digital technologies to optimize their business operations. From online banking to social media marketing, small businesses are adapting to the digital age to stay competitive.
– Doing business banking online/in mobile apps—51%
– Accepted more forms of cashless payments—45%
– Created/grew their social media presence—37%
– Implementing more digital-first marketing strategies—27%
– Added cybersecurity measures—21%
## AI Implementation
A growing number of small business owners are planning to implement artificial intelligence to streamline their business processes. AI can help differentiate businesses, improve payroll and bookkeeping, and enhance hiring efforts.
## Sustainability
Small business owners are increasingly adopting sustainable business practices to reduce their environmental impact. However, implementing sustainability practices comes with challenges such as increased costs and customer indifference.
# Making Personal Sacrifices to Maintain Profitability
Despite the profitability of their businesses, many small business owners have made personal and professional sacrifices to maintain their success. These sacrifices include increasing prices, working longer hours, and reducing their own salaries to ensure profitability.
## Optimism Among Bigger Businesses
In a comprehensive report combining insights from small and mid-sized businesses, it is evident that both segments are optimistic about the future. Mid-sized business owners are even more optimistic, with plans for revenue growth, expansion, and hiring. Both small and mid-sized businesses are confident in their revenue expectations and are investing in their futures.
For more detailed insights into the perspectives of small and mid-sized business owners, refer to the full **2024 Bank of America Business Owner Report**.
By staying informed and proactive about economic trends, funding options, customer engagement strategies, and sustainability practices, small business owners can navigate the challenges and capitalize on the opportunities presented in 2024.
