New York, NY, May 23, 2023 – A survey released today by TD Bank, America’s Most Convenient Bank®, found that despite ongoing market and macroeconomic volatility, New York City’s small business owners are still very optimistic about meeting or exceeding their business goals in 2023, following a successful previous year. Nearly all (91%) of respondents across Manhattan, Queens, the Bronx, Staten Island and Brooklyn met or exceeded their revenue goals in 2022.
Business Owners Plan for Growth in 2023
Along with their positive outlook, many small business owners plan to expand in 2023, with more than three-quarters (77%) of business owners anticipating that their revenue/sales and/or number of employees will increase in the next 12 months. When asked to rank their top three priorities in 2023 business owners named attracting new customers, investing in developing new products and services, and expanding existing products and services.
“Not only is it exciting to see that small business owners are continuing to fuel their ambitions in a year that has an uncertain economic picture, it is encouraging that so many are focused on attracting new customers and growing their businesses as a whole," said Ralph Bumbaca, Commercial Market President of New York City, TD Bank. "Businesses across the five boroughs remain on the offensive following a successful 2022.”
Local Economic Challenges Remain a Concern
Against the backdrop of rising interest rates and the threat of a potential national recession, New York City’s small business owners expressed concerns about the obstacles posed by the current macroeconomic environment. According to respondents, the top three challenges related to operating their businesses in 2023 are: increasing costs of supplies/materials/equipment, local/regional economic uncertainty and rising rates/inflation.
To offset these challenges, small business owners are closely managing cash flow by implementing automated processes and payments, changing their receivables terms to shorten payment times and reducing their physical office space (and associated expenses).
As inflation slowly levels due to the interest rate increases, nearly half (49%) of business owners feel somewhat or very positive about the impact of inflation on their business.
“Businesses of all sizes faced continued obstacles in 2022, especially as the year concluded with a dampened macroeconomic outlook,” Bumbaca said. “However, this new data shows business owners are feeling encouraged following the first few months of the year and that they are better equipped to address the impacts of inflation.”
There are also some concerns and opportunities posed by the recent wage increases in New York City. The top areas of business impact from the wage increases are: adjusting expenses to cover higher wages and hiring fewer employees. Other business owners were more bullish on the wage increases, stating that their company is attracting more talent due to competitive pay (30%).
This CARAVAN survey was conducted by Big Village among a sample of 250 business owners in New York City with fewer than 100 employees and a 2022 revenue of $250,000 to less than $10 million. The survey was fielded Jan. 31 – Feb. 20, 2023.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing over 9.9 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a division of TD Bank, N.A., offers vehicle financing and dealer commercial services. TD Bank and its subsidiaries also offer customized private banking and wealth management services through TD Wealth®. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US and www.twitter.com/TDNews_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com/us.
About Big Village
Big Village, formerly ENGINE, is a global, full-service media and marketing services company that empowers clients to outperform in the present and win in the future with its vast range of marketing solutions including insights, creative, media, data, and technology. Founded in 2005, Big Village has global headquarters in New York and 16 offices across North America, the UK, Europe, and Asia-Pacific. Find out more at big-village.com and follow @wearebigvillage.
Martha A. Gaston, APR
TD Bank, VP, Senior Corporate Communications Manager