Small business marketplace in its latest survey has found that small business (those that have 100 or less employees) are confident that this holiday season will be a positive one for them. According to Lendio, 87% businesses were optimistic about their preparedness for the upcoming holiday season.
Small business have been facing the onslaught of big multi-city retail stores and online portals, and many have been forced out of business due to lack of capital. However, building a sense of community and trust has been seen as a key marketing strategy, and it is expected that more small businesses will now focus on offering personalized and customized services to their clients.
While an overwhelming majority was positive about the holiday season, a small minority of businesses cited lack of capital for their pessimism. The survey also came with some interesting findings on how retail store owners were preparing for all the stress involved with ensuring high level of customer support during the holiday season. From increasing intake of caffeine to taking a vacation after the holiday season is over, business owners and staff are bracing up for the year-end challenge.
In addition to lack of capital, other challenges that small business owners usually face during the holiday season include staffing issues and advertising constraints. However, in spite of these issues, small business owners are looking at the holiday season with positivity and excitement. The Lendio survey also shed light on the following.
- 73% businesses expected to need more financing for the holiday season
- Credit lines and SBA loans remained the top financing option for small business owners
- Only 13% business owners revealed they won’t be able to pay the loan back on time.
Lendio’s survey is important in the sense that Christmas and New Year’s shopping is usually associated with multi-chain stores where revenues and bottom-lines touch millions and billions of dollars. However, small businesses, an important part of the economy, employ hundreds of thousands of people around the world, and it is important that Lendio’s survey results are taken into account by analysts.
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