How owners are managing a complex environment

U.S. Bank surveyed 1,000 small business owners and 1,000 small business employees to explore the top macroeconomic challenges small businesses are facing, their biggest priorities in 2024, and the state of the labor market. What are small business owners doing to attract and retain labor, and what compels their employees to accept or remain in their job?

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Resources for Diverse Businesses Business Resource Center 2023 Small Business Survey (PDF) 2024 Small Business Survey (PDF)

Top macroeconomic stressors

Small business owners reported their top stressors as:

73%
Competition

71%
Economic environment

65%
Inflation and increased costs

47%
Supply chain disruptions

Small business owners remain optimistic

73% of owners report that their business has grown over the past year, even more so for Black (84%) and Hispanic owners (80%). Despite facing a variety of challenges, small business owners overwhelmingly feel optimistic for the future of their business.

Percentage of small business owners who say they feel optimistic about the future of their business
2024
0%
2023
0%
0%

How AI is changing the small business landscape

The benefits of AI for productivity are clear to small businesses, but it’s less clear how automation will change their jobs in the future. See what owners are saying:

  • 71% of owners and 55% of employees agree that digital tools make their jobs easier.

  • 68% of owners think AI and automated solutions are beneficial.

  • Despite hesitations, 79% of owners who don’t use AI plan to implement automated solutions in the next year.

We asked employees of all ages: Do you think AI will replace your job? See the percentage below:
Boomers/GenX
0%
Millennial/GenZ
0%
0%

Attracting and retaining employees in a tight labor market

95% of small business owners are planning to implement strategies within the next year to attract and retain employees. See insights from owners and employees below:

Owners plan to give pay raises and bonuses.

Owners plan to give flexible work hours.

Owners plan to increase employee benefits.

Employees say raises and bonuses are the top factors in deciding to remain at a job.

Top three digital solutions helping owners succeed

79% of owners prefer their bank to provide digital solutions for banking, payments and administrative tasks. Here's what they see as the greatest benefits of digital tools in driving success:

36%

36% use digital tools to Increase productivity

37%

37% utilize digital solutions to prevent fraud

42%

42% use digital tools to simplify work

2024 SBO Survey cover

Read the full 2024 SBO Perspective

Discover how small business owners are navigating 2024 and beyond.

Access survey (PDF)

Helpful knowledge and tips

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Disclosures

This discussion is intended to be informational only and is not exhaustive or conclusive. It is not intended to serve as a recommendation or solicitation for the purchase or sale of any particular product or service. It does not constitute advice and is issued without regard to any particular objective or the financial situation of any particular individual. Some of the information provided has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. Other information represents the opinion of U.S. Bank and is not intended to be a forecast of future events or a guarantee of future results. U.S. Bank and its representatives do not provide tax, accounting or legal advice. Each individual's financial situation is unique. You should consult your tax, accounting and/or legal advisor for advice and information concerning your particular situation.

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