WSFS Bank, which is the main subsidiary of WSFS Financial Corporation, has presented new survey results indicating that small businesses in the Mid-Atlantic region are staying strong despite the challenges of inflation, tariffs, and a general economic slowdown.
A survey of 505 small business chief executives reveals that 92% of them believe their businesses are now meeting or surpassing their performance goals. Also, 66% of them are hopeful that their business will grow in the next year, while 52% are looking forward to an increase in revenues.
The most positive attitudes were displayed by businesses having 100 to 499 employees and those established less than five years 77% of their respondents in both groups showed faith in growth in the future.
The result also appears to indicate that many small businesses are acclimatizing effectively to the instability of the economy by redesigning their operations, keeping costs under control, and making well-planned investments in technological and business growth initiatives.
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“Small business owners have proven to be skilled navigators of uncertainty, turning economic challenges into opportunities for refinement,” said Candice Caruso. “At WSFS, we aim to meet businesses where they are. Whether they need assistance managing cash flow or seeking guidance to manage risk, we’re proud to provide the lending options and advisory support to help owners grow their businesses in any economic climate.”
Although the general view remains favourable, the survey has pointed out a number of small business-related challenges that are quite overwhelming. Of those respondents who said that their business was negatively impacted, 52% said that inflation was their main worry, while other follow up concerns were cost-of-living pressures (43%), tariff-related uncertainty (40%) and recession fears (33%).
Many businesses who want to reduce the effect of these pressures are employing cost-controlling measures and making production changes. 51% of respondents stated that they have cut the expenses of non-essential items and 31% have gone to cheaper suppliers and 27% have gotten better contract terms from current vendors.
And, small business owners’ relationships with banks and their expectations of financial services were investigated by the survey as well. Banking partners’ overall customer satisfaction level remains very high at 84%, but the results show that smaller and newer businesses will be able to make better use of banking advisory relationships and greater financial guidance.
“Our Associates are focused on helping business owners connect the dots from managing day-to-day financial needs to planning for long-term growth,” Caruso added. “As a trusted advisor, we provide guidance that’s practical, personalized, and grounded in what each business is trying to achieve.”
The report also underscored the growing importance of artificial intelligence and digital tools in small business operations.
81% of the survey respondents reveal that they have already started leveraging AI tools for one or more business functions. Among the top uses are data analysis and information gathering (43%) and marketing and content creation (42%).
As the survey, companies with an annual revenue of more than $250,000 appear to be the main drivers of adoption of AI tools at higher levels against smaller businesses, which continue to rely on factors like company size and available resources for implementing new technologies.
This is in line with the recent small business development trend whereby operational discipline, digital adoption, and strategic financial planning are being combined to address the challenges of the changing economic environment as well as creating the basis for continued growth.
