NEW YORK (AP) — Even as the U.S. economy looks increasingly likely to head into recession, small businesses still face headwinds such as high costs and difficulty finding qualified workers.
But owners say they're optimistic heading into 2024, according to a new American Express survey.
85% of all small businesses surveyed were satisfied with their business success, and 86% said they had achieved their 2023 business goals. In contrast, in August 2023, 80% of all small businesses surveyed said their long-term financial confidence was being negatively affected by economic conditions.
“Even in uncertain economic times, small businesses continue to demonstrate resilience and dedication,” said Gina Taylor, executive vice president and general manager of small business products and business blueprints at American Express. ” She said: “Our latest data shows that small and medium-sized businesses have a positive outlook for 2024 and are taking steps such as hiring and adopting new tools to stay proactive and competitive. .”
50% of small businesses surveyed have plans to grow or expand their businesses in 2024. However, only 28% said they plan to hire more employees. Hiring and retention remain a bottleneck for many small and medium-sized businesses. This is because large companies can generally offer higher salaries. There are more perks than small perks.
To retain high-quality staff, 57% of all respondents said offering flexible work options will be the number one way to attract and retain employees in 2024.