U.S. Businesses Report Growing Optimism about National and Local Economy, Chase Business Leaders Outlook Survey Shows Small and mid-sized businesses expect to increase sales and profits in 2014 Business Wire NEW YORK -- April 23, 2014 Thanks to an improving economy, U.S. businesses are expected to increase sales and profits this year, according to the 2014 Chase Business Leaders Outlook. Among the 3,500 business leaders surveyed, nearly three-quarters (73 percent) of middle market companies and 67 percent of small businesses expect to increase sales this year. More than half of the respondents forecast higher profits as well. These forecasts reflect the confidence that businesses have in their financial performance: 80 percent of middle market companies and 73 percent of small businesses have a positive outlook for the next 12 months – slightly higher than last year. “It’s encouraging to see that, despite some real challenges, respondents continued to express strong confidence in the future of their companies,” said Doug Petno, CEO of Chase Commercial Banking. Optimism about the national economy is up 17 percent this year for middle market companies to 54 percent, and up five percent for small businesses to 42 percent. Confidence grows closer to home, with 63 percent of middle market companies and more than half of small businesses expressing a positive view about their local economy. “Small business owners continue to focus more on the strength of their local economies, and it’s good to see their confidence continue to grow,” said Scott Geller, CEO of Chase Business Banking. Hiring plans are about the same as last year with middle market companies planning to add more full-time staff than small businesses, 53 percent versus 29 percent. Both groups remain concerned about the limited number of job candidates having the specialized skills needed for their open positions. This year, Chase surveyed senior decision-makers at 2,400 U.S. small businesses with annual revenues ranging from $100,000 to $20 million, and 1,100 U.S. middle market companies with annual revenues between $20 million and $500 million. Here are some additional highlights on what they expect in the year ahead. Regulatory environment Healthcare and tax regulations continue to be the biggest concerns among business owners, though the level of concern has decreased from last year. *75% of middle market companies are concerned how healthcare regulations will affect business growth, down 7% from last year. 46% of these respondents plan to require employees to pay a greater percentage of costs toward their coverage in the next 12 months. *56% of small businesses are extremely or very concerned about rising taxes, followed by healthcare regulation (54%). To deal with rising healthcare costs, many small businesses are imposing higher deductibles, requiring employees to pay a greater percentage of costs, or limiting hiring plans. Borrowing *70% of middle market companies anticipate a need for financing in 2014, primarily for capital equipment, working capital and acquisitions. *61% of small businesses are considering financing this year, primarily for working capital, capital equipment and technology investments. International expansion *58% of middle market companies are active in global markets, similar to last year. *54% of globally active businesses expect their overseas sales to contribute more than 25% of total revenue by 2019. *For middle market businesses with no global activity, 13 percent expect to expand overseas in the next three years. *75% of small businesses do not sell to, buy from, or have operations in foreign markets. Please click on the link to read the full report of the 2014 Chase Business Leaders Outlook. About Chase Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE:JPM), a leading global financial services firm with assets of $2.5 trillion and operations in more than 60 countries worldwide. Chase serves more than 50 million consumers and four million small businesses through more than 5,600 bank branches, 19,000 ATMs, credit cards, mortgage offices, and online and mobile banking as well as through relationships with auto dealerships. The bank serves more than 19,000 mid-sized businesses, municipalities, healthcare institutions and non-profit organizations through 125 local offices across 29 states, plus Washington, D.C. More information about Chase is available at www.chase.com. Contact: JPMorgan Chase & Co. Media: Michael Fusco, 212-270-5089 firstname.lastname@example.org or Mary Jane Rogers, 303-244-3142 email@example.com
U.S. Businesses Report Growing Optimism about National and Local Economy, Chase Business Leaders Outlook Survey Shows
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