Small Business Optimism Jumps Ten Percent, New TD Bank Survey Shows

According to the results of the 2024 Small Business Survey, released today by TD Bank, America’s Most Convenient Bank, a large majority of small business owners (SBOs) have a positive outlook on the future of their business. 90% of the SBOs surveyed noted their optimism for the future of their business in the next 12 months, which is up from 80% in 2023, indicating a light at the end of the tunnel following prolonged turbulence in the economic environment.

Alongside their positive outlook, the survey found that SBOs are also optimistic about the following areas of their business:

Revenue: Nearly two in three (64%) SBOs foresee their business revenue and sales increasing in the next 12 months.

Growth Opportunities: When it comes to expanding products and services, over half (59%) of SBOs noted that they plan to do so in the next twelve months, indicating that small businesses are honing in on growth tactics as the macroeconomic environment levels out.

Closures and Layoffs: SBOs are showing an overwhelming sense of confidence around their business’s health, with almost all (94%) noting that they have no plans to sell or close their business in the next 12 months. Similarly, only 4% plan to reduce their staff.

Inflation’s Continued Effects

“While many small businesses remain optimistic heading into the second half of 2024 and 2025, they have continuing concerns about interest rates, inflation and economic pressures. However, SBOs' optimism surrounding revenue and business growth is a testament to the resiliency of small businesses who have weathered tough economic circumstances and proven their ability to effectively navigate a challenging economy,” said Chris Giamo, Head of Commercial Banking at TD Bank. "We aren't in uncharted territory – business owners who have a strong relationship with their banker remain informed of the economic landscape and are able to leverage resources that will help them maintain and grow despite the challenges.”

Despite increased optimism around their businesses, persisting inflation continues to weigh on SBOs. More than half cited both inflation and interest rates (56%) and the increasing costs of supplies, materials, and equipment (58%) as top concerns.

Data from the survey highlights the impact these macroeconomic conditions have on SBOs, with almost two-thirds (64%) noting they will have additional credit or financing needs over the next 12 months. Of those SBOs, half (50%) noted that this loan or line of credit would be used to maintain company operations, with others noting they’d use the funding or credit to support expansion into new market verticals (47%) and launching a new product or service line (45%).