According to a new report, economic conditions and increased confidence are helping to spur small business growth. The Sage Business Index polls roughly 14,000 small- to medium-sized businesses each year, and this year’s results are positive.

2014 marked the first time since 2010 that more SMBs are optimistic than pessimistic.

U.S. companies are confident in their financial futures, thanks in part to a favorable opinion of the local economy, but concerns over the global economy remain.

So, what can small businesses expect in terms of financial growth?

The Sage Business Index found that 58% of the businesses polled believe their revenue will increase by 3.1% on average over the coming year. Almost half of the respondents expect an uptick in the number of workers during that time. Risk has become a more integral part of the business landscape as well, with 7% more companies considering themselves “risk seekers” over the past 12 months.

Will increased confidence lead to sales growth?
Gabie Boko, executive vice president of marketing for Sage North America, believes that the answer is yes. In a telephone interview with Small Business Computing, Boko pointed out that since SMB confidence is at a new high, these positive emotions can help sales grow in the near future.

One of the driving forces behind these changes is risk. The Sage Business Index highlighted an increased willingness to take risks, and Boko told Small Business Computing that for small businesses, risk can be a good thing.

She stressed that risk-taking is a sign that SMBs are comfortable with the current market and being rewarded for their efforts. Those that gamble with risk believe that their decisions will pay off.

Overall, confidence and risk-taking appear to be helping fuel SMB growth, and these trends have business owners expecting increased revenue sooner, rather than later.

OnDeck supports business growth nationwide. For more information on OnDeck growth loan options, check out our page on short term business loans.

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