CIT Direct Capital, the national online small business lending unit of CIT Group, announced the results of its new survey conducted by The Harris Poll, revealing nearly three out of four small businesses in the U.S. plan to expand their product and service offerings this year.
“With strong expectations for growth, small businesses are well-positioned to make improvements and upgrades,” said John Donohue, head of CIT Direct Capital. “A total of 72% of small business owners report that expanding product and service offerings within current geographies is the top priority for this year.”
When it comes to investing in their businesses, 50% say technology is at the top of the list, followed by equipment upgrades (47%) and hiring staff (36%).
More than half of small businesses expect hiring at their company to increase over the next year.
Despite these expectations, small businesses remain focused on a number of key issues. Data security is the top concern for small businesses (68%), followed by continued economic uncertainty (64%) and rising inflation rates (61%).
The top ways in which small businesses have capitalized their company in the last five years include internal sources of funding (38%), secured bank loans (33%), and leasing/equipment financing (22%).
“Understanding these key trends can help small businesses innovate and contextualize potential challenges,” continued Donohue. “With data security as a top concern, we understand why half of small businesses are looking to upgrade technology at their businesses.”
CIT recently introduced the Launch+Grow campaign, a new small business empowerment series in partnership with the nonprofit Operation HOPE. The video series is the first of its kind by Operation HOPE and features small business owners across the U.S. sharing their success, tips and challenges. Launch+Grow kicked-off at the start of Financial Literacy Month in April and runs through National Small Business Week the first week of May.
