Both companies and individuals are discovering methods to adjust and maintain stability during these exceptional circumstances. While a full return to normal may require time, a recent study validates the tenacity and determination of small business proprietors, who express confidence in their ability to navigate current and upcoming difficulties with adequate support and planning.

The first American Express Entrepreneurial Spirit Trendex, based on responses from 1,000 small and medium-sized enterprises, highlighted significant observations regarding the entrepreneurial mindset across the nation. Despite the ongoing pandemic, the research indicated that 75% of small business owners are hopeful regarding their company’s recuperation, and 82% believe they are more equipped to manage a subsequent emergency.

Their dedication to their ventures and pursuit of fulfilling work remains strong. According to the survey results, 81% of respondents feel the advantages of business ownership surpass the drawbacks, such as achieving financial security, having autonomy, transforming a hobby into a livelihood, and enjoying the freedom to establish their own schedules. The research also revealed further details about the prevailing attitudes of small businesses.

Small businesses are actively seeking advice

To effectively manage the challenges of the current environment, entrepreneurs are looking for support and guidance. A significant number of businesses are prioritizing virtual business conferences and webinars (47%), virtual networking opportunities (44%), counsel and materials on crisis management (44%), and methods for reducing stress and maintaining well-being (42%).

Financial Stability is a Primary Concern

It’s unsurprising, given the current economic challenges, that more than 81% of entrepreneurs are concentrating on managing their cash flow. They are actively seeking methods to reduce costs and boost revenue, with a significant focus on transitioning their offerings to an online platform. The study highlighted the following key actions being taken:

• Boosting promotional activities (41%).
• Expanding online product and service availability (40%).
• Reducing operational costs (36%).
• Developing additional income sources (35%).

Adjust Course, Then Do It Again

Few small businesses escaped the need to modify their practices in response to the challenges presented by the pandemic. For many, it became a year defined by strategic adjustments, and current findings suggest this pattern will persist in the coming year.

The collected data reveals that 76% of business owners have either altered their business model or are currently working to do so in order to sustain income. Furthermore, of those who have already made such changes, 73% anticipate needing to adjust their approach again within the next year. Remaining flexible and responsive to evolving market requirements and customer needs is essential for business viability, regardless of external circumstances.

Advocating for Change

Beyond the challenges presented by the pandemic, business leaders are currently witnessing and responding to a significant period in the pursuit of racial equality. A substantial portion of business owners – 43% – are actively supporting progress through public expressions of solidarity against racial injustice, or by providing financial support to organizations dedicated to racial justice.

Furthermore, business owners are implementing internal modifications within their companies, with 73% of those polled intending to enhance diversity within their teams. Key initiatives being considered are:

• A comprehensive overhaul of their company’s environment to foster a greater sense of belonging for employees from all backgrounds (54%).
• Revisions to their employee recruitment and hiring strategies (47%).
• The establishment of quantifiable goals for tackling racial inequity going forward (47%).

Despite the difficulties experienced by numerous small businesses this year, the findings demonstrate a resilient entrepreneurial mindset, characterized by a determination to move forward, evolve, and achieve success. The complete report from American Express can be found here.