Fifty-six percent of small-business owners feel positive about business prospects over the next six months, an increase from 48 percent last fall, according to the Spring 2012 American Express OPEN Small Business Monitor.
Despite the optimism, 31 percent of respondents say maintaining their current businesses and sources of revenue are still a large concern. Another 29 percent of respondents say growing their businesses is a major worry, which is down from 37 percent last spring.
The survey also finds that 35 percent of respondents say they plan to hire full- or part-time employees, a jump from 31 percent in the fall. Forty-four percent of respondents say they anticipate freezing hiring or cutting back staff, a decline from 61 percent in the fall.
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"The research clearly shows that we cannot look at any one economic indicator in a vacuum to predict small-business investment behavior," says Susan Sobbott, president of American Express OPEN. "While small-business owners are more optimistic about the economic recovery, they are not turning a blind eye to the uncertainty that lingers. They are waiting for more proof that the recovery is real and sustainable before investing heavily in growth initiatives."
Although growth is not the main priority, 46 percent of respondents say increased customer demand would be the most helpful factor when it comes to growing their businesses. To stand apart from competition, 80 percent of respondents say they plan to focus more on better servicing their customers. In fact, 96 percent of respondents say providing good customer service has helped them survive in a tough economy.
As respondents make an effort to provide the best customer service, 57 percent train their employees themselves while 26 percent have a senior member of staff train them, and 10 percent pay for formal training. Fifty-nine percent of respondents say they keep employee incentivized by offering benefits, such as health care, which is an increase from 49 percent last fall.
Social media is also becoming more popular among respondents as 55 percent say they use social media to attract customers, up from 50 percent last fall. Platforms respondents are relying on include Facebook at 38 percent, Google+ at 14 percent, LinkedIn at 13 percent, Twitter at 11 percent, YouTube at 10 percent, blogs at 6 percent, MySpace at 4 percent, Foursquare at 2 percent and Pinterest at 2 percent.
Although social media is becoming more popular, only 27 percent of respondents believe it is necessary for their companies, and 28 percent of respondents say it is "nice to have." Another 39 percent of respondents believe social media is unnecessary. In the next year, 41 percent of respondents say the plan to increase their company's social media presence.
Among other growth generators include tax cuts at 20 percent, access to capital at 13 percent and the ability to hire more staff at 7 percent. Thirty-three percent of respondents say tax relief is the most important issue the president and congress need to address.
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