The CNBC|SurveyMonkey Small Business Confidence Index ticked up one point this quarter, with small business owners split between those who express confidence in America’s banking system and those who do not. Here are some key highlights from our latest survey of more than 2,000 small business owners, fielded April 17-24, 2023.
Small businesses rely on large banks as confidence in Wall Street takes a hit
- Small business owners are split evenly between those who express confidence in America’s banking system and those who do not (49% vs. 50%)
- A majority (62%) of small business owners say they are confident their business capital is secure, but less (53%) say it is easy for them to access the capital needed for their business to operate
- 40% of small business owners say they do their business banking with a large bank rather than a regional bank (31%) or a community bank (32%)
- Most (71%) are not likely to open a new bank account for their business in the next six months, and a plurality (43%) say they’re moving money from one account to another about as frequently as they were a year ago
- Those working with a large bank are no more likely than those banking with regional or community banks to say:
- It is easy to access necessary capital (59% vs. 56% and 50%)
- They are confident their business capital is secure (67% vs. 66% and 60%)
- They have confidence in America’s banking system overall (53% vs. 50% and 46%)
- They are likely to open a new bank account for their business (30%, 28%, and 28%, respectively)
Brighter outlook on Main Street
- Our Small Business Confidence Index ticked up to a score of 46 out of a possible 100, with several components improving this quarter:
- 40% of small business owners now say current conditions for their business are good, up from 34% last quarter
- 46% expect their business’s revenue to increase in the next 12 months, up from 43% in Q1; similarly, 28% expect their headcount to increase in the next 12 months, up from 23% in Q1
- Still, overall views of the economy are dim: just 3% rate the current state of the economy as excellent, and 18% as good; many more consider it to be fair (34%) or poor (44%)
- Inflation is still a widespread concern, with 91% of small business owners expressing worry about inflation and just 31% expressing confidence in the Federal Reserve’s ability to combat inflation (both unchanged from last quarter)
- Inflation remains the top concern among small business owners (41%), distantly followed by labor shortage (17%), supply chain disruptions (15%), COVID-19 (6%), and cybersecurity (5%)
Read more about our polling methodology here.
Click through all the results in the interactive toplines below:
