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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.
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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 >
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© Priscilla Du Preez
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Livingston, Montana © Jake McGlothlin
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Raton Adventure Centre in Raton, New Mexico © Brenda Ferri
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The Dalles, Oregon © Alicia Gallo
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A storage container storefront in Jasper, Alabama. © Ryan McGill-Blanton Media Group
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Crema Brew Coffee is a locally-owned coffee shop in New Bern, North Carolina. © Swiss Bear
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New Morning storefront in Biddeford, Maine © Heart of Biddeford
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New Orleans, Louisiana © Bobby Boone
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Cincinnati, Ohio © Janet Hurn
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Chief Program Officer Matt Wagner, Ph.D., shares his predictions for the trends impacting small businesses in 2024.
A podcast featuring some of the best advice we heard from entrepreneurs and community leaders across the country.
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Charlotte, NC © Pixabay
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Laramie, WY © Laramie Main Street Alliance
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© Allapattah CDC
Get ready to support your small business owners and encourage people to shop small this November!
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© Main Street South Carolina
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© Historic Valley Junction
This three-week live, online course will prepare local leaders to more effectively work with small business owners in their districts and create an environment that is supportive of entrepreneurship.
© Notice Pictures
Main Street America has a podcast! Tune into Main Street Business Insights to hear from small business leaders across the country.
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Congratulations to these innovative Shop Small events from across the Main Street network.
Stockbridge, GA © Stockbridge Main Street
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Spencer, IA © Spencer Main Street
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Boston, MA © Kyle Klein
From program budgets to big achievements, here's the latest data on the Main Street Movement in 2023.
Franklin, TN © Brandon Jean
Learn how Downtown Inc and York County Economic Alliance are supporting marginalized small business owners in their community
York, PA © Sully Pinos
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Short stories about small business owners from Evart, Michigan.
Evart, MI © Storyville
Matt Wagner looks back at his small business predictions for 2022 and shares predictions for 2023.
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Ottumwa, IA © Main Street Ottumwa
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Wixom, MI © Carissa Serylo
From social media scavenger hunts to downtown passports, the Main Street network has used countless innovative ways to encourage their communities to Shop Small®—and had plenty of fun doing it.
Oceanside, CA © Road West Photography
Main Street Franklin is leading the way in showing how women business owners can be a powerful force for change in their communities.
#EquityRising, Old Algiers Main Street Corporation's new job training program, seeks to combat rising cost of living by helping residents train for careers that will allow them to stay in their neighborhood.
Learn how the Small Business Census pilot project explored the demographics of the small businesses that call Main Street districts home.
Colville, WA © Colville Together
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Camden, AR © Kimberly Moore Davis
Main Street leaders and local development practitioners from around the world participated in this exciting webinar hosted by the OECD.
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Silver City, NM © Silver City MainStreet
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Skowhegan, ME © Kristina Cannon
Main Street America is proud to support the Revitalizing Small and Local Businesses Act
Main Street America's research team shares the results of the 2022 Small Business Survey.
© JENNIFER E. WOLF
Learn about Show of Hands, an entrepreneurial program in multiple Main Street communities.
Wheeling, WV © Wheeling Heritage
Chief Program Officer Matt Wagner, Ph.D., shares his predictions for the trends affecting small businesses in 2022.
Is your Main Street ready for the biggest small business shopping day of the year?
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Charles City, IA © Mark Wicks
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Main Street Arkansas has brewed a new engaging way for tourists and residents alike to explore local Arkansas commercial districts: the Main Street Arkansas Coffee Trail.
Little Rock, AR © Main Street Arkansas
Matt Wagner explores how Main Streets can navigate workforce concerns in the post-pandemic economy.
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Memphis, TN © Four Way
Heart of Biddeford shares the strategies they developed to support Black-owned businesses in their community.
Biddeford, ME © Heart of Biddeford
We heard from organizations across the nation about the incredible impact their markets have had on community engagement, entrepreneur and small business support, and keeping their district vibrant.
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Tulsa, OK © Dr. Tiffany Crutcher
Learn about the various programs and initiatives that Fremont is using to promote inclusive economic development.
Fremont, CA © Fremont Economic Development
BDOs are place-based organizations that help small businesses and entrepreneurs to flourish. They have been on the frontline of support for the country’s hardest-hit entrepreneurs throughout the pandemic and have been working to enable thriving commercial corridors throughout the crisis.
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A vacant storefront is the perfect stage to creatively promote the available space or to showcase other businesses and events in the area.
Ripon, WI © RetailWorks, Inc
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Batavia, IL © April Duda Photography
For Black History Month, we want to recognize and celebrate the Black business owners and entrepreneurs who have overcome challenges and obstacles in launching and running their own businesses, thanks to resilience, creativity, and hard work.
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Asheville, NC © Ablohkin
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© Cindy Shebley
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Meet a recipient of the HartBeat of Main Street Grant Program
Meet a recipient of the HartBeat of Main Street Grant Program
Meet a recipient of the HartBeat of Main Street Grant Program
Meet a recipient of the HartBeat of Main Street Grant Program
Meet a recipient of the HartBeat of Main Street Grant Program
Meet a recipient of the HartBeat of Main Street Grant Program
Meet a recipient of the HartBeat of Main Street Grant Program
Harrisonburg Downtown Renaissance explores how they redesigned their Bricks & Clicks Business Retention Program during the pandemic.
Meet some amazing women business owners!
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Matt Wagner explores how the pandemic may affect the shop small holiday weekend.
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Detailed findings from our follow-up survey on the impacts of COVID-19 on small businesses to better understand the continued challenges businesses face as the crisis evolves.
How does psychology impact the recovery of our downtowns after the COVID-19 pandemic?
Small Business Saturday® is more than a day to shop. It’s a nationwide movement that shines a spotlight on the importance of supporting small businesses in communities across America.
The Town of Benson started a special project to highlight their downtown businesses.
The Berkley Downtown Development Authority (DDA) proudly debuted its Downtown Berkley Shopping Bag for a Cause through a partnership between Better Life Bags.
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Kelly Tompkins of Main Street Enid shares more about the Maker Trail project and how it inspired creativity and helped people discover downtown.
Too often, as we’re strolling our favorite Main Street, we pass empty or dark shop windows that make us want to hurry home a little bit faster. Imagine instead, a charming streetscape adorned with vibrant, lively window displays, showcasing retailers’ favorite products and seasonal gift ideas.
Small Business Saturday promo pic from Downtown Goldsboro, North Carolina, showing all the folks who took the pledge support a small business in their community.
We’ve put together a practical list of some of the things that local store owners can do right now to help them capitalize on this increasing trend in local searches.
From authentic comfort food to farm-to-fork fresh and everything in between, these restaurants, bars, and cafes are key to the thriving social, business, and residential life in the historic commercial districts in Main Street Iowa communities.
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The craft beer industry is playing a key role in the rebirth of Main Streets and neighborhood commercial districts across the county.
Appealing to mobility-challenged shoppers yields benefits beyond the store.
Being the only person in the know can be fun, exhilarating even. Except when you are the one person out of 600+ in a room and you know bad news is coming.
Fritz the dog has made his way into the hearts of the residents of LaBelle, Florida, and helped our Main Street Community find a way to make what we do more noticeable.
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In Winchester, Virginia, one woman’s vision and commitment to downtown’s revitalization created an innovative community space for the Creative Class.
A business retention and expansion plan, properly implemented, not only helps keep businesses open but possibly even helps them expand.
The first rule of conducting business is “make it simple.” The easier it is to pay for merchandise, get entertainment or obtain a service, the more likely it is that people will take advantage of those options.
Main Street communities across the country are no stranger to seeking creative strategies to solve their most nagging issues – vacant buildings, marketing downtown, bolstering retail to name a few.
To understand the role that immigrant business owners play in Boston’s small business ecosystem, you need only to walk through any Boston Main Streets district.
Façade appearance is a critical aspect of the overall aesthetic appeal and unique character of downtown.
A lot of signs are necessary to make a downtown work well, but not every community knows what a good sign system looks like, or how instrumental it can be to the creation of a successful downtown.
Main Street Iowa, a program of the Iowa Economic Development Authority’s Iowa Downtown Resource Center, created a one-of-a-kind three-year program to provide help for performance venues located in Main Street districts.
