(Source:QuickBooks, Posted December 13, 2021)
After two record-breaking years of new business creation, QuickBooks forecasts the trend will continue in 2022, predicting up to 17 million new small businesses to be formed.*
These findings are highlighted in the QuickBooks New Business Insights report, based on a recent survey of 8,000 U.S. employees and owners.
- 86% | More than 8 in 10 people (86%) said that small businesses are crucial to the economy.
- 57% | More than half (57%) of surveyed respondents said they dream of owning their own business “to be my own boss” and “to have more control over my future” as their leading motivations for starting a business..
- 57% | Nearly 3 in 5 people in the U.S. (57%) said they intend to spend more money at small businesses over the next six months because they want to help local employers and enjoy the stellar customer service they get.
- 50% | 50% of respondents said they’ve spent more with small businesses during the pandemic.
“When the pandemic hit, we saw an unprecedented number of new businesses formed as millions of people spotted new opportunities brought on by the ‘new normal’ or reevaluated their priorities. Now, almost two years later, we’re continuing to see this trend, as 2022 promises to deliver even more small business growth and prosperity.”
Alex Chriss, executive vice president and general manager of Intuit’s Small Business and Self-Employed Group
QuickBooks also surveyed 2,000 U.S. small business owners to understand the top priorities for businesses in the new year.
According to the Small Business Insights report, small business owners overwhelmingly said they are focused on making the pivot to online permanent, already accelerated by the pandemic.
88% | Percentage of surveyed small business owners say online sales will be an important source of revenue in 2022.
97% | Small Business owners who say digital technology will be important to their business in 2022.
Some concerns and considerations of small business owners
Attracting and Retaining Talent.
44% | Despite current challenges in hiring, 44% of small businesses said they will expand their workforce over the next three months. T
40% | Percentage of U.S. employees who say they are looking for new or different jobs.
46% | To retain talent, 46% plan to increase pay for existing employees.
36% | Other owners are offering larger bonuses.
Optimizing for Online.
A top priority for those starting a business in 2022 is building a user-friendly website, with “increasing online sales” noted as the top priority of 40% of business owners. Notably, this isn’t limited to ecommerce businesses:
74% | Percentage of brick-and-mortar business owners who say online revenue is important.
33% | In addition to a website, social media is also proving to be vital for businesses, with revenue from social media accounting for a 33% of small business revenue, on average.
22% | Brick-and-mortar businesses get 22% of their sales via social media.
Concerns with Economic and Financial Issues
97% | Business owners and consumers (97% each respectively) are worried about inflation.
45% | Among business owners, 45% cited “rising costs” as the largest threat their businesses face.
63% | To overcome this, nearly two-thirds of business owners (63%) are planning to raise prices over the next three months.
Shipping and the supply chain issues
71% | 71% of small businesses have experienced supply chain problems this year…however…
62% | Of those that have experienced issues, 62% of the surveyed owners say their problems have already been resolved or that they expect them to be resolved soon.
67% | More than two-thirds of business owners (67%) plan to fund their new business with personal savings
49% | 49% will apply for a small business loan from a bank or financial institution.
*The projection of 17 million new businesses includes sole proprietors. When new businesses hire employees or incorporate, rather than remain as sole proprietors, they need an Employer Identification Number (EIN). QuickBooks projections based on U.S. Census Bureau data suggest there will be around 5.3 million EINs registered in 2021, significantly outpacing the previous record of 4.3 million set in 2020. The same projection predicts there will be 5.6 million new businesses in 2022.