Despite concerns about inflation, U.S. small-business owners are optimistic about the future and feel prepared to adapt as needed to meet their customers’ needs, according to a new survey by Union Bank. The bank recently polled 1,005 consumers and 200 small-business owners about their holiday spending plans and business strategies. Ninety-two percent of small-business owners said they felt optimistic about their business’s future, with 74% reporting better sales volume than before the pandemic and 52% saying profits have been higher than expected.
The survey also found that most consumers will seek out ways to save and cut back on holiday spending because of inflation, with roughly one-third of respondents saying they will spend less on travel and eating this year. One in three consumers also said they are likely to spend more at businesses that offer “buy now, pay later” plans or third-party integration payment platforms.