U.S. Perspectives

Small business economic indicators still relatively strong

Women are more likely than men to need funding to grow their small businesses, according to Visa survey.
Woman standing in front of bakery display.

February 20, 2019 —The outlook for America’s small businesses remains positive overall, according to the latest quarterly results of Visa’s small business health indexes and nation-wide survey of small business owners. Visa’s Small Business Spending Index continued to rise, increasing by 9 points from the second to the third quarter of last year. In addition, 45 percent of small businesses felt the economy improved last quarter and reported increased revenues.

Visa Small Business Spending Index

Payment volume on Visa business credit cards* (indexed to 1Q2013)

Line chart showing small business spending payment volume growth from 2013 to 3Q2018.

Last actual: Calendar Year 3Q2018
*Payment volume and balances per active account. See methodology notes on page 2 for more details.
Source: Visa data

Other highlights of this report:

  • Female-owned businesses are more likely than their male counterparts to seek out new credit cards to help with cash flow and business growth
  • About a third of small businesses reported some type of business expansion, adding new products and services or buying additional equipment
  • However, hiring has slowed, as only 44 percent of expanding businesses reported hiring employees, down 10 percent from the fall report.
  • While some businesses are still planning to expand, most will likely be more fiscally conservative in the near term, according to the survey. Only 31 percent of small businesses intend to increase spending in the next quarter, down from 38 percent in 2Q2018

Download complete report (PDF)

Spend intention in next three months is highest among millennial and Gen X-owned businesses

Bar chart showing the spend intention in the next three months among millennial Gen X and boomer small business groups.

Source: Visa quarterly national small business survey of approximately 1000 small business owners,
administered by Kelton. Winter survey completed in December 2018

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