Bluevine’s Mid-Year BOSS Report finds SMBs shake off inflation, unwilling to wait for Fed rate cut before investing in growth and operational goals
Signal to Presidential Candidates: Small business owners aren’t planning to vote with their wallets in the 2024 election; alignment with personal ideals takes precedence over business-friendly policies
Jersey City, N.J., September 10, 2024 — Bluevine, the banking platform that serves as the financial operating system for startups and small businesses, today announced its 2024 Mid-Year Business Owner Success Survey (“BOSS”) Report™, benchmarking the data behind the actual decisions that US-based small business owners (SBOs) are making and informing their future decisions. This mid-year pulse builds upon the findings from its New Year report, demonstrating that even though SBOs are unbothered by inflation, unyielding interest rates, and political uncertainty, many are still making costly financial management mistakes that threaten their prospects for a successful 2024.
Based on Bluevine’s mid-year survey, sentiment remains positive for SBOs halfway through the year. The majority (88%) of SBOs met or exceeded expectations for business performance forecasts in H1 2024. Nearly three-quarters (73%) of SBOs report coming out of H1 2024 with high confidence in H2 2024 business performance; and, two-thirds (66%) of SBOs received the additional capital they applied for via loan, line of credit, or credit card in H1 2024.
SMBs Are Still Making Avoidable Mistakes
Despite the collective optimism across the market segment, many SBOs seem doomed to repeat avoidable mistakes, further threatening a successful 2024 if left uncorrected. More than half (52%) of SBOs still use personal credit cards for business purposes, obscuring true cash flow and creating expense management and accounting issues. Only one-third (34%) of SBOs have established access to a line of credit to use for company growth or as a buffer for working capital to cover late customer payments, payroll, or unexpected operational challenges. Lastly, while progress remains strong, only a little more than half (58%) of SBOs report maintaining enough of a cash reserve to avoid a cash flow crunch.
Business Owners Aren’t Voting with Their Wallets
While the outcome of the 2024 election remains uncertain, the majority (58%) of SBOs plan to vote for a candidate who aligns with their personal ideals over business-friendly policies. In fact, SBOs are nearly split on the potential impact the presidential election will have: with 53% expecting a new Republican President to have a positive effect on their business and 40% expecting a new Democratic President to improve their business.
Government Policy Not Dictating Growth Strategies
Inflation (62%) and taxes (50%) rank among the biggest concerns for SBOs when it comes to government policy, while regulations are simply not a concern to negatively impact business success.
“Despite prevailing economic uncertainties, small business owners remain adaptive and resilient,” says Eyal Lifshitz, co-founder and CEO of Bluevine. “Although inflation and taxes are prominent concerns, SBOs aren’t letting this dictate their growth strategies. However, many business owners still must shore up critical parts of their financial foundation – like access to capital and business credit – to avoid missteps that can threaten company performance,” continued Lifshitz. “While SBOs have seen some improvement in access to capital, only a small portion of them are effectively managing these funds to ensure long-term stability and maintain a proactive approach in a market climate that has shown sustained unpredictability.”
SBOs Securing Capital for Immediate Needs, Investing in Long-term Growth
More than half (66%) of SBOs received the additional capital they applied for via loan, line of credit, or credit card in H1 2024 and nearly all (95%) were approved for the amount of credit they applied for and received the APR they sought (83%); however, in a troubling trend, only one-third of SBOs have established a line of credit to help maintain a cash flow buffer.
SBOs aren’t banking on Fed rate cuts to invest in growth and operational goals, or simply cover major expenses like payroll, late customer payments or working capital.
Methodology
Bredin, an independent research firm specializing in SMB market trends, conducted a survey of 1,200 small business owners nationwide between June 5-18, 2024. The respondents reported annual revenue between $100,000 and $5 million. For access to the complete Mid-Year BOSS Report™, visit here.
About Bluevine
Bluevine is the banking platform that serves as the financial operating system for startups and small businesses. Through a single account, companies can earn more, save more, borrow, and manage their money whenever and wherever they do business – without ever stepping into a branch. Accessible through one dashboard, its product suite integrates high-yield business checking, accounts payable, debit and credit cards, loans, and lines of credit. Since 2013, Bluevine has served over 500,000 customers, delivered over $14 billion in loans, and is currently trusted with over $1 billion in managed customer deposits.
Bluevine is backed by leading private and institutional investors, including Lightspeed Venture Partners, Menlo Ventures, 83North, Citi Ventures, ION Crossover Partners, SVB Capital, Nationwide Insurance, and M12 (Microsoft’s Venture Arm). Bluevine is a financial technology company, not a bank. Banking Services provided by Coastal Community Bank, Member FDIC. Lines of credit are issued by Celtic Bank. For more information, please visit bluevine.com or follow us on LinkedIn, Instagram, Facebook, and Twitter.
Media Contact:
Kate Rozen
PR & Communicationspress@bluevine.com