As tax seasons ends, the April 2014 SurePayroll Small Business Scorecard revealed that while 57 percent of small business owners paid more in taxes, 60 percent saw increases in revenue.
In fact, one in three small businesses grew revenue by more than 15 percent. Only one in five saw tax increases of more than 15 percent.
Optimism remains high, as 69 percent of small business owners are optimistic about the small business economy. Hiring continues to remain mostly flat or slightly down, dropping 0.1 percent nationwide. Hiring was down 0.3 percent in the Midwest and Northeast; up 0.1 percent in the West; and flat in the South.
The average paycheck followed a similar trajectory, staying flat nationwide; dropping 0.1 percent in the Midwest, Northeast and West; and increasing 0.1 percent in the South.
The Scorecard data has continued to indicate during the last year that small businesses are using a lean model to grow revenues without adding new staff. It’s a bit of a double-edged sword, as increased hiring would obviously be a boost to the economy, yet strong revenues are a testament to small business ingenuity.
Are Small Businesses Shifting to Alternative Lenders?
Further findings from the survey included a look at non-bank alternative lenders, such as OnDeck and Kabbage. Small businesses who have used these types of alternative lenders, instead of big banks, have been overwhelming satisfied – 86 percent said they had a good experience and would use them again. Moving forward, of those seeking to secure capital, 36 percent said they would use an alternative lender; 45 percent would use a bank; and 7 percent would go to friends and family.
This is a fairly dynamic shift from two years ago when 60 percent used banks; 14 percent used friends and family; and only 13 percent went to alternative lenders.
Is There Value in Facebook Advertising?
More than half of small business owners (53 percent) told us they see value in advertising on Facebook. The social media giant has been working to make its platform more useful for small businesses. One in three said they are currently using Facebook for advertising.
For more about what’s happening on Main Street, check out our Scorecard infographic: