Retail Marketing Strategies from Main Street South Australia’s David West
Join host Matt Wagner as he welcomes David West, director of Premier Retail Marketing and based in Adelaide, South Australia.
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Our Spring 2023 Small Business Survey offered many insights that are valuable for Main Street programs looking to better support their businesses. Topline, data-backed takeaways include:
There’s so much more behind these top takeaways! Keep reading for a full analysis of these survey results, including comparisons to previous surveys, as well as insights on how to use this information to help inform your work supporting entrepreneurs on Main Street.
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Since we conducted our first major small business survey in March 2020, Main Street America has received more than 15,000 completed surveys from small business owners and entrepreneurs across the United States. We’re grateful to leaders from across the network for sharing the survey with business owners in their districts and we are excited to share these latest results.
We launched our latest small business survey in March 2023 and heard from 1,385 business owners and nonprofit leaders. The survey, conducted using the Qualtrics survey platform, was open for participation from March 8 to March 24. As a group, the 2023 respondents are very similar to respondents from our past small business surveys. The vast majority of respondents own businesses with very few employees, and many have businesses that have been operating for a decade or more.
Some other striking notes about the small business owners who responded to our survey include:
For the first time, we asked respondents what they saw as the three greatest strengths of their business, and most respondents pointed to their products and services, as well as their customers and community as core strengths.
One less encouraging note on these self-reported strengths: Only 4 percent of respondents identified diverse sources of revenue was a key strength, which may be concerning as we consider potential economic challenges on the horizon.
Small business owners reported a very slight increase in business confidence in 2023 compared to 2022. This year, we repeated a question from our 2022 survey, asking: “As you think about the next three months, how confident are you that your business will perform successfully?” on a ten-point scale, where ten equals extreme confidence. In 2023, the average confidence level was 7.7, just a tick higher than the 7.6 point average from 2022. In the current survey, 61 percent of respondents reported confidence of 8 out of 10 or higher; in 2022, 59 percent said the same.
This confidence is likely related to the fact that 80 percent of respondents reported that their revenues had stayed about the same or increased from 2021 to 2022, and 72 percent of respondents expected that their revenues would increase in 2023. Studying this data more closely, we see that confidence and expectations for future revenue are linked to other key data in clear ways:
In the 2023 Small Business Survey, we see evidence that many major concerns from 2022 have lessened as sources of worry. Concerns about supply chain issues, staffing, and attracting and retaining customers were notably less pervasive this year compared to last year’s survey results.
Inflation emerged as the one concern that increased by more than 1 percent from 2022, as 63 percent of respondents indicated it was a concern in 2023, compared to 58 percent in 2022. Recession was not included as a potential worry in 2022, but was identified as a concern of 48 percent of respondents in 2023, representing the second most frequently cited concern.
Very few small business owners—just 4 percent of respondents—expect that they will decrease their staffing in 2023. In sharp contrast, 62 percent expect their staffing will stay the same, and 26 percent expect to add staff. We found similar relationships between staffing expectations and other key variables as those between projected revenue change and these measures:
Separately, we asked whether small business owners were considering ways to reduce their reliance on staff by using new technologies or changes to business operations. Nineteen percent indicated that they were considering this. Looking again at our comparison variables:
We know that a variety of factors weigh on the minds of small business owners as they think about adding and retaining qualified staff, including housing affordability, housing availability, the quality of local schools, availability of childcare options, cost of healthcare, and their ability to pay competitive wages. Most respondents to this question indicated that they were concerned about their ability to pay competitive wages (65%), the cost of healthcare (55%), and housing affordability (52%). Additionally, 45 percent of respondents indicated concerns that childcare options and housing availability impact their ability locate, recruit, and retain qualified staff.
The Spring 2023 Small Business Survey highlighted some important strengths of Main Street businesses and opportunities for Main Street programs interested in further supporting and lifting up their small businesses.
1) As local Main Street leaders promote the businesses that operate in their downtowns and neighborhood commercial districts, they should continue to point to the following attributes that are demonstrated sources of pride for their entrepreneurs: the high quality of goods, services, and customer service, and the exceptionally strong connections between business owners, customers, and the community.
2) We see, again, how strong the Main Street America network is in terms of the small, independent businesses that drive Main Street economies. The vast majority of businesses located in Main Street districts have very few employees. Our small business surveys continually show that about 60 percent of businesses in Main Street districts are women-owned. We see on this survey that nearly a third (32%) are family owned.
3) Though the survey results suggest that macro-economic storm clouds and concerns over a potential recession loom in the minds of small business owners, the broad range of concerns seen in the 2022 Small Business Survey have lessened. Small business owners were much less concerned about supply chain issues and challenges hiring and retaining staff in 2023.
4) Compared to owners of businesses disconnected or loosely connected to Main Street, owners of businesses located in, or served by, Main Street programs were more confident about their business success and more optimistic about their potential for revenue and staffing growth in 2023. This is no doubt a testament to the successful efforts of local Main Street leaders.
5) Our results indicate that owners of retail businesses and businesses that have been in operation for more than 10 years are feeling greater precarity and nervousness. Offering extra support to these business owners could be especially beneficial.
6) The results highlight Main Street leaders’ opportunity to bolster their small businesses by supporting housing in their districts, as housing supports small businesses on Main Street in at least two chief ways. First, by adding housing, small business owners can be less concerned about housing affordability and housing availability for staff in their communities. Second, new residents living in housing added to Main Street districts will inevitably patronize the businesses operating in the storefronts lining the district, bringing revenue for the small businesses that can be recycled in the local economy. For more on how to bolster housing in your downtown or neighborhood commercial district, check out our Housing Guidebook for Local Leaders, published this March.
There is more to come with these small business survey results. In the weeks ahead, we will publish maps with results from states and localities where there were many small business owner respondents. If you have questions about this data or Main Street America’s small business surveys, please connect with us on The Point or email the MSA Research team at msaresearch@savingplaces.org.
SnowShoe, a Main Street America Allied Member, is this quarter's Main Spotlight advertiser. For more information about what they do to support Main Street organizations, click here >