According to the Regions Next Step omnibus survey Bank of regions, an overwhelming majority of business owners and senior executives are focused on investing the business to drive growth over the coming year.

The survey, which was conducted by Regions Next step, the bank’s free financial education program, found that about nine in ten companies (89%) plan to increase their investments in a key business area over the next 12 months. When asked to select all the areas in which companies plan to increase their investments, the top two responses were technology or e-commerce platforms (63%) and sales, marketing and advertising (54% ).

The survey results show a significant change in business confidence. A small business Regions Next Step survey in 2020 showed that only 46% of small business owners plan to increase their investments in a key business area in the coming year, likely due to the economic uncertainty associated with the COVID-19 pandemic. When these respondents were asked to select all the areas in which they plan to increase their investments during this period, only 18% said technology or e-commerce platforms and 12% said sales, marketing or advertising. .

“The 2021 survey confirms what our Regions Bank commercial banking teams are hearing from customers: companies plan to grow,” said Joye Hehn, Next Step financial education manager for Regions Bank. “We know COVID-19 has impacted many businesses, but it’s encouraging to see planning underway for growth in 2022. As business owners and executives plan for the year ahead, Regions Next Step is committed to providing free tools and helpful advice to help them work. towards and achieve their business growth goals.

The 2021 survey also found that nearly two in three companies (61%) plan to seek additional financing to cover a major investment or expense in the next 12 months. Additionally, about one in three businesses said access to capital would have the most significant impact on the success of their business.

“At Regions, we know our corporate clients and we know their unique business needs,” said Brian Willman, Manager of Commercial Banking Services for Regions Bank. “With many business owners strategically planning for 2022 and beyond, our commercial bankers are ready to provide personalized advice and guidance to help clients plan for growth. The resources provided by Regions Next Step are just one example of how Regions helps its clients manage and grow their businesses. From providing financial wellness resources to client employees to managing payroll and all points in between, Regions is here to support stronger businesses, every step of the way.

As many business owners and executives seek funding, the 2021 survey also found that they may need advice on how to do so. Half of the respondents said they were not very familiar with the business loan application process (50%) and the different types of business loans available (54%). In addition, 40% did not feel very well informed about creating business credit or managing cash flow. Companies with fewer than 50 employees were the least knowledgeable about these topics, according to the survey.

Other key findings

  • According to respondents, the quality of the workforce (35%), access to the workforce (34%) and inflation (20%) should have a significant impact on the success of companies over the next 12 months.
  • In addition to the increase in technology spending, almost a quarter of companies (23%) predict an increase in materials spending.
  • Just over half of those surveyed (54%) did not feel very prepared when it comes to disaster planning and recovery.
  • While at least three in four businesses have various fraud prevention measures in place, only 40% feel somewhat prepared when it comes to mitigating the risk of commercial fraud.

The Regions Next Step omnibus survey questions were part of a national online survey that took place between July 23 and August 9. The survey reached 1,024 US business owners and senior executives.


Source link