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U.S. Small Businesses Anticipate Growth And Expansion In 2018

Staff Report

Friday, May 4th, 2018

CIT Direct Capital, the national online small business lending unit of CIT Group, announced the results of its new survey conducted by The Harris Poll revealing that nearly three out of four small businesses in the U.S. plan to expand their product and service offerings this year.

"With strong expectations for growth, small businesses are well-positioned to make improvements and upgrades," said John Donohue, head of CIT Direct Capital. "A total of 72 percent of small business owners report that expanding product and service offerings within current geographies is the top priority for this year."

Investment Priorities, Sources and Key Issues

  • When it comes to investing in their businesses, 50 percent say technology is at the top of the list, followed by equipment upgrades (47 percent) and hiring staff (36 percent).

  • To that end, over half of small businesses expect hiring at their company to increase over the next year.

  • Despite these expectations, small businesses remain focused on a number of key issues. Data security is the top concern for small businesses (68 percent), followed by continued economic uncertainty (64 percent) and rising inflation rates (61 percent).

  • The top ways in which small businesses have capitalized their company in the last five years include internal sources of funding (38 percent), secured bank loan (33%), and leasing/equipment financing (22 percent).

"Understanding these key trends can help small businesses innovate and contextualize potential challenges," continued Donohue. "With data security as a top concern, we understand why half of small businesses are looking to upgrade technology at their businesses."