Preliminary data from Bredin’s recent SMB Pulse survey of 500 U.S.-based SMB principals highlights the effect of the failures of Silicon Valley Bank and Signature Bank on SMB business outlook, and where they plan to keep their money.
On the one hand, SMB outlook is generally positive. Just over half expect their revenues to increase by more than 10% in 2023. However, one in five feel that the United States is in a recession, and another 26% feel a recession is very likely this year.
The recent banking turmoil hasn’t helped their outlook. Roughly three in five agree that the collapse of SVB and Signature Bank, and the turmoil at many regional banks, make a recession more likely. Roughly two in five are concerned that it will become harder to get a loan.
In terms of direct effects, about one in seven SMBs have moved their company’s money as a result of SVB and Signature Bank’s failures. Here’s where they moved their money:
Perhaps most surprising is the number of SMBs who are poised to move their money: 24% of those who haven’t yet moved their company’s funds from their current bank are considering it. If you’re a bank or credit union, now’s a good time to reassure your small business clients that their money is in good hands.
Need help understanding and/or engaging SMBs? Bredin can keep you up to date on evolving SMB needs and challenges through quick-turn, actionable market research. We can also help you develop high-value content and social posts to boost SMB awareness, brand perception, leads, conversion and revenue.
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