Survey: Northeast small businesses bullish on their own revenue but not the economy at large

Small-business owners in the Northeast are optimistic on their prospects for growing revenue but less hopeful about the outlook for the U.S. economy, according to a survey released by TD Bank May 22.

Just under three-quarters of small-business owners in the Northeast, 74 percent, said they were expecting to meet or exceed their revenue projections this spring, the survey found. That would make the spring better for companies than the first portion of the year, when 60 percent of small firms reported meeting or exceeding their revenue projections.

Optimism about the U.S. economy was significantly lower, however. A mere 26 percent of survey respondents said they were optimistic about the nation’s economy.

“Small-business owners are resilient, so although their confidence in the U.S. economy may be lacking, many still feel they are in a position to boost their revenue stream,” Phil Daniels, TD Bank market president for upstate New York and Vermont, said in an e-mail. “Economic confidence hasn’t deterred their confidence in running a successful business.”

Employment was one of the survey’s brighter spots, as 95 percent of those responding planned to maintain or increase their staffing levels over the next quarter. Additionally, 27 percent wanted to hire one or more employees.

Less than one-third of small-business owners intended to increase their capital investments — 29 percent. Of those who do plan to ratchet up capital investments, 6 percent plan to boost them by 15 percent or more over the next quarter.

Large numbers of owners aren’t cutting back on capital investments, though. Another 59 percent of small-business owners expected to keep their capital-investment level steady in the upcoming quarter.

“Of course, we would like to see higher numbers regarding capital investments,” Daniels said. “It wouldn’t surprise me to see a boost in numbers if we asked this question again in July. Our research and feedback from our customers has led us to believe that well-capitalized small businesses are likely to spend and invest in technology, workforce development, and improvements to their existing facilities in 2012.”

Most business owners weren’t enamored with the prospect of moving to new commercial space in the next year. Among survey respondents, 86 percent said they are somewhat unlikely to move or very unlikely to move.

A more affordable lease was the top reason small-business owners said they would move, with 27 percent of owners giving that response. And 25 percent said they would move for a larger commercial space. 

Other reasons for moving included a more desirable business location, which 21 percent of owners cited, and an opportunity to buy space, which 16 percent of business owners named. Only 7 percent of owners said they would move to a smaller space, while 4 percent said they would move to be closer to home.

In a final survey indicator, small-business owners indicated that their mood has not worsened over the last year. A majority of survey respondents, 65 percent, claimed they are as happy or happier today than they were a year ago.

ORC International conducted the survey for TD Bank. ORC, which is based in Princeton, N.J., polled 500 business owners by telephone in Maine, Connecticut, New Jersey, Boston, and Philadelphia in April 2012. Surveyed owners represented companies with annual sales of $5 million or less.

TD Bank customers in other regions of the country have expressed sentiments similar to those in the Northeast survey, according to Daniels.

“We conducted the same survey in our Mid-Atlantic and South regions earlier this year, and the results and expectations were very similar,” he said. “Overall, we’ve seen strong growth in our small-business loan portfolios this year throughout our Maine to Florida footprint.”

TD Bank, headquartered in Cherry Hill, N.J. and Portland, Maine, has more than 8 million customers and offers retail, small-business, and commercial-banking products. It has over 1,280 locations in the Northeast, Mid-Atlantic, and metropolitan Washington, D.C. areas, as well as the Carolinas and Florida. TD Bank had $122 billion in total deposits, including more than $20 billion in New York State, primarily in the Albany and New York City metro areas, according to June 30, 2011 FDIC statistics. The bank is a subsidiary of The Toronto-Dominion Bank of Toronto (NYSE: TD). 

Small-business owners in the Northeast are optimistic on their prospects for growing revenue but less hopeful about the outlook for the U.S. economy, according to a survey released by TD Bank May 22.

Just under three-quarters of small-business owners in the Northeast, 74 percent, said they were expecting to meet or exceed their revenue projections this spring, the survey found. That would make the spring better for companies than the first portion of the year, when 60 percent of small firms reported meeting or exceeding their revenue projections.

Optimism about the U.S. economy was significantly lower, however. A mere 26 percent of survey respondents said they were optimistic about the nation’s economy.

“Small-business owners are resilient, so although their confidence in the U.S. economy may be lacking, many still feel they are in a position to boost their revenue stream,” Phil Daniels, TD Bank market president for upstate New York and Vermont, said in an e-mail. “Economic confidence hasn’t deterred their confidence in running a successful business.”

Employment was one of the survey’s brighter spots, as 95 percent of those responding planned to maintain or increase their staffing levels over the next quarter. Additionally, 27 percent wanted to hire one or more employees.

Less than one-third of small-business owners intended to increase their capital investments — 29 percent. Of those who do plan to ratchet up capital investments, 6 percent plan to boost them by 15 percent or more over the next quarter.

Large numbers of owners aren’t cutting back on capital investments, though. Another 59 percent of small-business owners expected to keep their capital-investment level steady in the upcoming quarter.

“Of course, we would like to see higher numbers regarding capital investments,” Daniels said. “It wouldn’t surprise me to see a boost in numbers if we asked this question again in July. Our research and feedback from our customers has led us to believe that well-capitalized small businesses are likely to spend and invest in technology, workforce development, and improvements to their existing facilities in 2012.”

Most business owners weren’t enamored with the prospect of moving to new commercial space in the next year. Among survey respondents, 86 percent said they are somewhat unlikely to move or very unlikely to move.

A more affordable lease was the top reason small-business owners said they would move, with 27 percent of owners giving that response. And 25 percent said they would move for a larger commercial space. 

Other reasons for moving included a more desirable business location, which 21 percent of owners cited, and an opportunity to buy space, which 16 percent of business owners named. Only 7 percent of owners said they would move to a smaller space, while 4 percent said they would move to be closer to home.

In a final survey indicator, small-business owners indicated that their mood has not worsened over the last year. A majority of survey respondents, 65 percent, claimed they are as happy or happier today than they were a year ago.

ORC International conducted the survey for TD Bank. ORC, which is based in Princeton, N.J., polled 500 business owners by telephone in Maine, Connecticut, New Jersey, Boston, and Philadelphia in April 2012. Surveyed owners represented companies with annual sales of $5 million or less.

TD Bank customers in other regions of the country have expressed sentiments similar to those in the Northeast survey, according to Daniels.

“We conducted the same survey in our Mid-Atlantic and South regions earlier this year, and the results and expectations were very similar,” he said. “Overall, we’ve seen strong growth in our small-business loan portfolios this year throughout our Maine to Florida footprint.”

TD Bank, headquartered in Cherry Hill, N.J. and Portland, Maine, has more than 8 million customers and offers retail, small-business, and commercial-banking products. It has over 1,280 locations in the Northeast, Mid-Atlantic, and metropolitan Washington, D.C. areas, as well as the Carolinas and Florida. TD Bank had $122 billion in total deposits, including more than $20 billion in New York State, primarily in the Albany and New York City metro areas, according to June 30, 2011 FDIC statistics. The bank is a subsidiary of The Toronto-Dominion Bank of Toronto (NYSE: TD).