OnDeck & Ocrolus Report: Small Businesses Optimistic But Hit by Hiring Hurdles

A joint report by OnDeck, a leading small business lender, and Ocrolus, a document AI and cash flow analytics platform, paints a picture of growing optimism among small businesses despite ongoing challenges. The report, based on a survey of nearly 500 businesses and data from over 3 million loan applications, reveals key findings:

• Positive Outlook: Most businesses anticipate growth in 2024, fueled by steady revenue increases.

• Profitability Focus: As inflation cools, in Q4 it was still a concern. Businesses are shifting focus towards improving profitability and cash flow to support expansion.

• Hiring Hurdles: Over half of businesses struggle to find and hire qualified staff, posing a potential roadblock to growth.

Other details from the report:

• "Growth expectations are generally consistent across the country, with 25% of businesses expecting significant growth over the next 12 months. In Boston, Minneapolis and St. Louis, growth expectations are more muted, averaging just 16%."

• "70% of small businesses have less than four months of operating cash (they would like more), and the cash flow data shows that for most businesses, 90% of revenue is consumed by operating expenses (before interest, debt repayment and taxes)."

• "Over 65% of small businesses in major metropolitan areas — including Boston, Chicago, Cleveland, Kansas City, Philadelphia and Minneapolis — were moderately, very or extremely concerned about hiring qualified staff."

While the report highlights an upbeat mood among small businesses, concerns remain. The ongoing talent shortage could hinder expansion plans. This highlights the need for deeper insights into specific industry trends and regional variations to understand the full picture.

Want to learn more? 

The full Small Business Cash Flow Trend Report by OnDeck and Ocrolus offers a comprehensive data analysis, including industry breakdowns, regional comparisons, and expert insights. Dive deeper and gain valuable knowledge to navigate your own business in today's dynamic market.

Go HERE for the full report.