Silver Lining: Small-Business Owners Suggest Economic Optimism During Tough Economic Times

A silver lining for small businessesHere’s something that might seem counterintuitive, given all the economic bad news that small-business owners have to wade through in these times: small-business owners aresaying that the future’s looking bright and looking up.

That’s what became clear in a June 2012 in a survey of more than 1,000 small-business respondents. Of them, 76% said they are optimistic about their company’s growth for the remainder of the year. Other interesting numbers from the survey include:

  • Fewer than 7% said the opposite of “expected growth,” that they thought conditions for their business would decline by the end of 2012.
  • About 17% of the small-business owners said that the November U.S. Presidential election would further determine how they feel about a positive or not-so-positive future for their shops.

But that’s not all. The survey also reveals a correlation between the age of the business owner and the level of optimism. The younger the respondent, the more likely he or she is positive about the future. Let’s dig into those numbers.

Youthful Optimism: Digging Deeper into the Small-Business Owner’s Mindset

The survey, conducted by j2 Global — a provider of cloud services, such as e-fax, virtual phones, and e-mail — indicated that while a majority of respondents are optimistic about the months to come, those under 32 years old were the most confident of the lot.

The tally: 85% of the Millennial generation’s respondents said that they expected their business to grow. The numbers then dipped a bit as the answers came from older owners.

  • 81% of those between 33 and 47 years said they felt optimistic about their business.
  • 71% ranging from 48–66 years were positive about business growth.
  • 64% of owners over 67 were feeling bullish about the future of their work.

“I think younger business owners are in a group maybe more tailored to the current economy and current world,” said Mike Pugh, vice president, marketing of j2 Global. “Maybe they adopted mobile devices and models that allow them to be more nimble. They may have less infrastructure and overhead, with what they do based on the cloud-based solutions that are out there.

“Another part of it is what I like to say is the sheer optimism of youth,” Pugh continued, referring to youth especially during tough economic times. “They have been through this on a shorter timespan, and the older generation: they’ve been through more. They’ve been through this before. Maybe they fell less heartened about taking it on another time.”

Social Media as Growth Promoter: New Opportunities for the ‘Nimble’

One of the reasons the youngest cohort is the most positive might be that the business world is shifting away from brick and mortar to online and interconnected.

According to j2 Global’s survey, one in three owners say their marketing strategy is now completely social-media centered. And 26% say social media takes up half or more of their marketing-strategy time.

And then there’s the effect of mobile-device technology.

No longer shackled to a desk in some back office, mobile-minded small-business owners may be saving up to 370 million hours of time per year by going mobile with location-non-dependent apps.

Indeed, the survey says that 38% of small-business owners use five or more mobile applications to keep their operations running well.

“Nimble is the word that comes to my mind,” said Pugh. “My opinion about these mobile-based businesses is they have the flexibility to start up, to wind down, to change and to restart faster. An older capital-intense business has to raise money, get a facility, buy equipment. Your ability to change your mind is pretty slim.”

And so, when it comes to optimism, Pugh said: “The key word is nimbleness, and that compresses all these timeframes, and it makes for more opportunities to change. And with that, you can change the rules.”

 

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