SMEs Optimistic About Economy
The future is looking good to small and medium-sized enterprises (SMEs), both in the U.S. and globally, according to the American Express Global SME Pulse report.
SMEs are optimistic about the economy and confident about their future business performance.The new survey of senior executives and decision makers from SMEs across 15 countries reveals these businesses in the U.S. are even more optimistic about the global economy than their foreign counterparts. More than half of U.S. executives (54%, vs. 39% overall) are positive about the global economic outlook over the next 12 months. When asked to consider the local economic environment, they are even more upbeat, as nearly six in ten are positive (59% vs. 45% overall).
Executives are also confident in their ability to deliver increased revenues and profitability. More than two thirds of the U.S. SMEs surveyed (69%, vs. 58% overall) expect significant revenue growth of at least 4% over the next 12 months.
Forty two percent anticipate revenue growth of at least 8% over the same period, double that of SMEs worldwide (21%).
In terms of profitability, U.S. SMEs are also upbeat, with 35% forecasting a net profit of at least 8% per year over the next three years. U.S.
SMEs say their most important strategy to grow domestic revenue is more effective marketing and sales to domestic customers (48%), followed closely by understanding changing customer demands (46%).