Small businesses are somewhat optimistic despite serious challenges, according to the latest Local Pulse Report from Thrive Analytics.
Of the businesses studied, 36% expect the economy to continue improving over the next 12 months. However, 33% are stilled concerned about their own long-term sustainability. And 70% have less than two months of operating cash on hand.
Top challenges include managing cash flow, digital transformation, staffing, inflation, and supply-chain issues.
One third of businesses plan to replace legacy systems with new technology in the first half of 2022 in an effort to alleviate some of these conditions.
In addition, 45% upgraded their websites during the past year.
And 62% feel that leveraging technology allows them to spend more time with customers.
“Since the pandemic, small businesses have found new ways to deliver products and services,” says Jason Peaslee, managing partner of Thrive Analytics. “Now they have a clearer idea of how to compete in today's economic landscape. This should allow them to continue the momentum that last year brought.”
The study of 10,125 businesses was conducted in December 2021.