Some 35% of small business owners, including Black entrepreneurs, are concerned about revenue, marking the highest level of concern in four years. The Q1 MetLife and U.S. Chamber of Commerce Small Business Index reported that revenue worries reached their highest point since the third quarter of 2021, when they stood at 34%. The figure increased by 10 percentage points from last year’s fourth quarter, rising from 25% to 35%.
Concerns about inflation have also grown, with 58% of small business owners citing it as a top issue this quarter. Additionally, 66% reported being comfortable with their cash flow, down from 72% in the previous quarter. Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce, commented that declining confidence stems from growing revenue concerns and the potential for tariffs to raise costs for businesses and their employees.
The Q1 survey was conducted online between late January and mid-February 2024, with a sample of 750 U.S. small business owners and operators. The study included at least 50 Black-owned businesses, 100 Black respondents, and 141 POC-owned businesses. Meanwhile, findings from the 2025 Report on Employer Firms, released by the 12 Federal Reserve Banks, indicated that more small businesses reported revenue declines than those experiencing revenue growth.
Amid these challenges, small businesses may consider various strategies to boost revenue:
- Expand product offerings: Diversify to attract a larger audience by exploring new customer segments or untapped markets.
- Focus on customer retention: Engage with existing customers, gather feedback, and use digital follow-ups to maintain loyalty.
- Identify niche markets: Target underserved markets with specialized products or services that competitors are not offering.
- Cut costs to improve revenue: Reduce expenses by eliminating unnecessary memberships, lowering utility costs, and negotiating better supplier rates.
- Personalize customer interactions: Offer tailored product recommendations, special offers, and follow-up messages to enhance customer relationships.
- Use upselling techniques: Encourage customers to purchase premium versions of products or additional services to increase sales.
- Leverage digital marketing: Utilize social media platforms, influencer collaborations, and strategic content to expand brand visibility.
- Form partnerships with other businesses: Cross-promote with brands that complement your products or services for mutual growth opportunities.
By implementing these strategies, small businesses may be able to navigate economic uncertainty and sustain their operations.
