Small businesses are feeling good about the upcoming season
Despite a sputtering economy, most small businesses are feeling optimistic that holiday sales this year will be better than last year. In a survey by Kabbage.com, the leading online provider of working capital, 80 percent of respondents are optimistic, with 41 percent stating they expect a “must stronger” holiday season in 2013 than 2012 and 39 percent expect it will be “stronger” while 16 percent believe it will be unchanged, with only four percent responding they think it will a weaker sales season than last year.
Kabbage reports that this follows a year of healthy small business growth in 2013, with 76 percent percent of respondents reporting increased revenue for the first six months of 2013 compared to the same period in 2012.
In conjunction with an improved outlook about sales in coming months, 65 percent also responded that they expect to borrow more working capital this year, many because they are more optimistic about the economy in general. The top four sources of working capital for small businesses are currently credit cards, online cash advance sites, banks, and friends & family.
Fourth quarter is the busiest
The final quarter of the year remains the busiest for small businesses, with 44 percent responding that it is their busiest selling season. Fully 38 percent report that sales are consistent throughout the year.
“We are proud that the majority of our customers are enjoying healthy growth in 2013 and are investing now to gear up for a strong holiday selling season,” said Rob Frohwein, Co-Founder and CEO of Kabbage. “This data not only signals that we have a big holiday season ahead for the small business sector, but also the critical role Kabbage plays in fueling overall economic growth. Every time we fund our customers, they use it to expand their business by buying inventory, hiring staff, launching marketing campaigns, and much more.”