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Last year, small business owners were focused on efficiency and profitability. As for 2024? They’re looking to grow. That’s according to Bluevine‘s inaugural Business Owner Success Survey (BOSS).

“Accounting for nearly half of the GDP and hiring in the U.S., small businesses play a significant role in our economy and are a driving force of innovation, opportunity, and inspiration,” Eyal Lifshitz, Bluevine co-founder and CEO, said in a statement.

Lifshitz added, “For small business owners nationwide, 2023 was a year of budget tightening and improving efficiencies – more so than larger companies with longer-term financial flexibility. Now, as inflation cools, with stronger than anticipated consumer spending and an anticipated soft landing for the economy, small businesses are right to be optimistic about growth this year.”

The Jersey City-based digital banking platform surveyed more than 1,100 small business owners nationwide between Dec. 11, 2023, and Jan. 25, 2024, for the BOSS report. The businesses reported annual revenue between $100,000 and $5 million.

Some of the key findings of the report include:

• In 2023, 93% of small businesses surveyed posted some level of profitability.
• For 2024, 22% of those surveyed are projecting revenue gains of 50% or more, compared with 12% that grew revenue at or above 50% in 2023.
• 67% of small businesses surveyed planned to hire more staff this year. In 2023, 75% finished the year with the same or fewer employees than they had at the start of the year.
• More of small firms will seek access to capital this year (45% of those surveyed), representing an 18% increase over 2023. (Of those, 55% are looking for a new credit card and 55% are also seeking a new lender.)
  • By comparison: In October 2023, a Goldman Sachs 10,000 Small Businesses Voices survey found that 78% of respondents said they were concerned about their ability to access capital.
• 54% of small businesses surveyed sell locally and regionally, compared with 31% that sell nationwide and 14% that sell globally.
• 39% of respondents sell their products and services through a combination of e-commerce and in-person, brick-and-mortar locations.
• When asked what was the single best thing they did last year to ensure their company’s success, 29% said they sharpened their business strategy, 22% invested in marketing and sales and 17% managed finances with more purpose.

Optimistic but still seeking support

While small businesses are optimistic about growth, 37% of respondents don’t think their state government provides helpful policies or programs that support their business, and 38% said the same about federal officials.

“Being the ‘boss’ and owner of a small business has many rewards, but it can also be challenging as you address the multitude of economic, operational, and regional market issues impacting your business,” Lifshitz said.

“As many small business owners can attest, it’s the execution of your business plan that determines whether a small business thrives or fails. With SMBs focused on revenue growth and expanding their business this year, factors such as cash flow management, capital investments, and hiring all contribute to a company’s ability to succeed. It’s about being efficient with the business while maintaining that entrepreneurial spirit,” Lifshitz added.