AUSTIN, Texas — There has been a record new number of small businesses nationwide in the past few years.
With layoffs and shifts in the workplace, that number is expected to grow. Brett Sussman of American Express Business Blueprint said the "entrepreneurial boom" started in 2021.
"In 2021, we saw over 5 million new small business applications, and that was up 50% from 2019," Sussman said.
Sussman said the growth relates to two factors. The first is because during the pandemic, people had a chance to reset and understand what drives their passion and their values.
"I think that really drove a lot of people to consider small business ownership. The second thing is with the technological advances, it's never been easier to start a new small business. Now, also talk about in 2023, it's also never been harder to maintain a small business," Sussman said.
According to Sussman, in 2023, 50% of small business owners that American Express talked to were very excited that their revenue would grow and customers would come to them in-store or online.
"But they are really worried about the cost side of the equation. The cost side of the equation is coming from three factors. The first is marketing costs. It is really hard now to stand out in a crowded marketplace," Sussman said.
Secondly, it still remains hard to find the right employees and hiring and retaining employees is hard and expensive for them. Lastly, inflation costs have really hit small business, as their raw materials and their costs of doing business increases.
"So ingredients for a bakery or aluminum for a bed company, or even things like shipping or buying computers, are much higher than it was a few years ago," Sussman said.
The biggest thing experts say they hear from small business owners is they're seeking cashflow visibility. According to Sussman, two-thirds of small business owners are asking if there are there better tools out there to manage their money in and out of their business.
"I think that's the conversation I would have is cashflow is king for small businesses and understanding how to measure it," Sussman said.