2021 Small Business Trends – Guidant

While the COVID pandemic was obviously the most notable challenge of 2020, there are always challenges associated with small business ownership. We asked respondents what their biggest challenges outside of coronavirus-related issues were in the last 12 months. Lack of capital or cash flow was the number one challenge at 23% of the share — this remains the biggest challenge of small businesses. Over the last few years, employee recruitment and retention has become a more common challenge, with it becoming the second most common struggle this year, with 19% of respondents citing it — an increase of 17% from last year. Marketing and advertising is also something more business owners are struggling with, at 15% of owners citing it, a 7% increase. While only 8% of small business owners surveyed counted managing or providing benefits as a challenge of their last year, that is a 20%, increase from 2019.

Despite the COVID pandemic, economic uncertainty, and other challenges of the past year and of small business, many entrepreneurs are happy with their choice to become small business owners. When asked “how happy are you as a small business owner” the plurality of respondents answered “very happy,” at 43%, while 31% answered “somewhat happy.” On a scale of one to five, with one being “very unhappy” and five being “very happy,” the weighted average of responses was 3.95, only a 2% decrease from last year.

Resilience, positive sentiment for the future, and happiness as business owners all show that small businesses are ready to tackle today’s challenges for a stronger tomorrow. Despite the pandemic, the majority of small business owners are primarily interested in growing their business, at 51%. Thirty percent are focused on sustaining their current business, while 10% want to open a new location. Only 9% are currently interested in selling their business.