Small business optimism is improving. In the J.D. Power 2023 U.S. Small Business Banking Satisfaction Study, small businesses expressed a brighter outlook and showed better financial health than a year earlier. They reported improved access to affordable funding to meet business goals and increased confidence in their ability to weather a cash shortfall.
With these improvements, the percentage of those who view their business as cash and/or capital constrained shrunk to 46%. That’s down from 50% a year earlier and 48% in 2021.
Yet, their optimism still remains below pre-pandemic levels, as market conditions continue to be challenging. More than half (55%) say that inflation is having a negative effect on their business.
With this blend of optimism and pressure, it’s no wonder 76% of small businesses are interested in receiving advice from their primary financial institution. And the banking industry is doing a slightly better job of responding to this need, with 57% of small businesses saying they received advice in the past 12 months, an increase of 3 percentage points from 2022.
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