Small Business Optimism Seen Leading to More Marketing

As we approach National Small Business Week, designated to take place from May 16–20, more optimism is apparent in this sector. The latest Small Business Barometer from Capital One reveals improved financial performance at many smaller establishments. In particular, increased credit availability for these operators could soon lead to more hiring and spending, especially on promotion.

Here are a few specifics from the study which focuses on 1st quarter 2011 numbers but includes business leader outlook for the rest of the year:

  • Business owners who say the economy is improving for them: 41%
  • Business owners who say that 2011 will be stronger for their results than 2010: 61%
  • Business owners who say that their financial situation is stronger than last year: 43%

Overall, about 23% of these businesses will increase their spending on business development in 2011. When it comes to marketing, small operators turn to a wide spectrum of formats:

  • Newspaper and other print: 62%
  • Online: 34%
  • Radio: 20%
  • TV: 19%
  • Facebook/​Twitter: 14%
  • Social coupons: 5%
  • Company blog: 3%
  • Location-​based mobile apps: 2%

The respondents to the Capital One survey reported that 2011 challenges will include rising competition and fuel costs. For many smaller merchants, the credit crunch has eased, only to be replaced by an operating environment that requires them to keep tight control on expenses. But to generate more revenue, small business owners will use online and traditional advertising and 51% also feel that traditional networking is most effective.

[Source: Capital One Bank’s First Quarter 2011 Small Business Barometer. Capitalone​.com. 3 May 2011. Web. 10 May 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.