Monit’s latest Quarterly Small Business Pulse Survey captures Small and Medium Owner sentiment about their operating environment and how it influences their priorities.  The Q3 2023 survey was conducted September 28-29^th and included 300 SMB owners from across the United States.  

Key Highlights:

1. While overall results were still positive, they were less rosy than in prior quarters.  44% of Business Owners reported “Better” or “Significantly Better” improvements in their operating environment, down from the peak of 68% in Q1 ‘23.

2. Potential for a slow emergence of a “new normal” as owners have adjusted to pandemic, economic, supply chain, and banking industry turmoil.  High interest rates trail only the Economy and Buyer/Supplier Stability as top concerns.

3. SMB owners may be starting to shift their growth expectations with only 44% indicating an increased appetite to invest, down 11% vs. prior quarters.  Only 35% reported plans to borrow to fund growth.  33% reported delaying making investments due to ongoing inflationary pressures.

4.  Although 68% of owners reported a higher focus on their receivables, adoption of new payments acceptance channels than in prior quarters.

5.  While the rate SMB owners moving deposits has slowed, owners are still actively opening and funding new accounts.  This includes 27% moving deposits to an existing account at a different bank while 28% reported setting up and funding a new account.

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Key Considerations to Banks:

1. Faster moving SMB owners may have already adjusted in prior quarters to tackle opportunities and mitigate headwinds.  Banks need to help their frontline teams support slower moving SMBs to better understand the business challenges they face and appropriate solutions to address them.

2. Business owners are opening and funding accounts at new FIs – including fintechs. Banks must continue their focus on winning and retaining the operating account position or risk slow erosion of lower cost deposits.

3. Improvements in receivables management continue to be a priority for business owners in response to the tougher operating environment.  Banks with services and focused delivery models that aim to improve SMBs’ operating costs and reduce cash collection cycles will be in a stronger position to win the operating position.

To get a copy of the full report, please contact our Chief Customer Officer at ryan@monitapp.io

The Q3 ‘23 survey was conducted between September 28-29^th and queried owners' perspectives of changes vs. the prior quarter. The survey included US based businesses, including small businesses with between $100K-10 million in revenue and mid-sized businesses with between $10-100 million in revenue.

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