2024: A Crucial Year for U.S. Small Businesses
A significant chunk of U.S. small business owners say 2024 is a “make-or-break” year for them, according to fresh data that found nearly one in three are concerned their companies might not make it through the year.
A sign inside a small business door in New York City. Nearly one-third of U.S. small business owners are concerned about their company making it through 2024.
(Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)
These findings were released by Slack, which conducted a survey of small business owners. The survey revealed that 32% of respondents are worried their businesses will not survive through the end of the year, and 38% said they are more concerned about their company heading into this year than last.
Despite these concerns, the majority of entrepreneurs polled (71%) expressed optimism about the state of their businesses. However, they did highlight several key concerns, including inflation and economic conditions (47%), the need to raise prices (32%), and increased competition (24%).
“The margin for success is often razor thin, meaning small businesses need to be forward-looking, resilient, and adaptable even amid current economic climate challenges,” said Jaime DeLanghe, senior principal of product management at Slack.
According to DeLanghe, “While our survey found most performed better than expected in 2023 and are optimistic about 2024, it shows many are still looking for ways to improve results despite limited resources and technological capacity.”
Just under half of business owners said their companies performed better than they expected last year, and 71% said they are optimistic in their outlook for 2024.
(iStock / iStock)
The survey also highlighted the role of technology in helping small businesses exceed expectations. Almost half of the respondents (49%) reported that their companies performed better than expected, while 21% said their companies fared worse.
Of those surveyed, 26% said they utilized new technology in 2023. Artificial intelligence (AI) emerged as the top new tool, with 50% of respondents incorporating it into their operations. Other popular tech tools included productivity or collaboration software (41%) and communication tools (34%).
A bicyclist cycles past a Slack logo outside its headquarters Dec. 1, 2020, in San Francisco. Slack is owned by cloud-based enterprise software company Salesforce.
(Stephen Lam/Getty Images / Getty Images)
Looking ahead, more than a third of respondents (35%) expressed excitement about adding or updating new tech tools in their operations this year. Furthermore, over half of these respondents indicated that new software is on their purchase list for 2024.
The AI trend from last year is expected to continue, with entrepreneurs recognizing its potential to enhance productivity and optimize workflow. AI can help surface insights faster, summarize messages, and eliminate repetitive tasks, allowing small businesses to focus on more complex projects and forge new customer relationships.
As small businesses navigate the challenges and uncertainties of 2024, it is clear that technology will play a crucial role in their survival and success. By embracing innovative tools and strategies, these businesses can adapt to changing market conditions and position themselves for growth.
