Survey: Colorado small-business owners more optimistic than nation’s

Colorado small business owners are more optimistic about the national economy than are their counterparts across the nation, according to a new survey that shows they also believe that the state’s economy is stronger than the nation’s.

They still remain cautious when making significant investments in their businesses, according to the results of the 2015 U.S. Bank Small Business Annual Survey. The survey reveals trends including economic sentiment, issues of greatest concern to small business owners, plans for future hiring and capital expenditures, and innovation.

“Small businesses here in Denver are feeling more optimistic than they have been the past several years,” said Douglas Van Der Zwaag, regional business banking manager for U.S. Bank in Denver, in a media statement. “For example, on the lending side, this year we’ve seen a significant uptick in companies financing new equipment or expanding their capacity by moving into larger properties.”

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In its sixth year, the survey polled 3,202 small businesses during the first quarter of 2015, including 200 in Colorado, with $10 million or less in annual revenue across the 25 states where U.S. Bank provides small-business banking services.

Nearly three-quarters of Colorado small business owners believe the national economy is in a recovery or expansion, compared with 67 percent across the country, according to the survey.  Beyond that, 61 percent say Colorado’s economy is stronger than the nation’s. The most commonly cited reason for saying so is general growth in the small-business segment. Nationally, only 30 percent of small business owners described their state economy as stronger than that of the nation.

Looking at their own businesses, four in five Colorado small business owners described the financial health of their businesses as good to excellent.

Despite feeling good about the state and national economy, surveyed Colorado small-business owners remain cautious when making significant investments in their businesses. Nearly one in five is likely to add to staff in the next year, compared with 25 percent nationally, and one in three plans to make a capital expenditure, similar to 34 percent nationally. They also say borrowing’s at a five-year low, yet access to capital remains high.

Colorado small-business owners who took part in the survey cited education as the top national issue, a change from last year when the federal budget took the top spot. Nationally, health care was most commonly cited as the top issue. In Colorado and across the country, fewer small-business owners than in previous years said that the Affordable Care Act would have a negative long-term impact.

Small-business owners in Colorado and across the country continue to embrace mobile technology. At the state level, 73 percent (compared with 75 percent nationally) said they have integrated mobile technology into their business strategy, whether through mobile banking, social networking, web design, payments or other uses.

Beyond that, social media is playing a greater role in small-business owners’ strategies. In addition to looking to new technology to position their businesses in the marketplace, 64 percent of surveyed Colorado small-business owners (compared with 67 percent nationally) maintain a social media presence to make connections, find talent or market their business. Those who maintain a presence said that Facebook was most effective, followed by LinkedIn.