Charlotte Small-Business Owners Remain Hopeful as Economic Growth Continues Despite Challenges

Charlotte’s Small-Business Owners Express Optimism Despite Challenges

It’s an exciting time for small-business owners in Charlotte. A recent survey conducted by U.S. Bancorp reveals that nearly all local entrepreneurs are feeling hopeful about their future. In fact, a stunning 99% of small-business owners in Charlotte believe their companies will thrive going forward, significantly higher than the 87% of small-business owners nationally who feel the same.

Success Rates Shine Bright

The survey, part of the 2024 Small Business Perspective report, was conducted between April and May of this year and sheds light not just on optimism, but also on success. An impressive 98% of Charlotte’s small-business owners consider their operations successful. In comparison, only 90% of their counterparts across the country share this sentiment. Dee O’Dell, head of business banking sales for U.S. Bank in Charlotte, explains, “They are resilient because they are growing.”

Growth in Numbers

Speaking of growth, a whopping 95% of local business owners reported that their operations have expanded over the past year. This is quite a bit higher than the national average of 73%. O’Dell attributes this surge to several factors, particularly Charlotte’s economic boom, characterized by a steady influx of new residents. In fact, from 2022 to 2023, the Charlotte metro area welcomed an astonishing 117 new residents each day, marking the highest relocation rate in 15 years.

Challenges in Paradise

However, it’s not all sunshine and rainbows. Despite this strong growth, local small-business owners are grappling with some significant challenges. The survey pointed out that the top concerns for these entrepreneurs include competition (77%) and the economic environment (66%). When comparing this to nationwide figures, we see 73% of small-business owners across the country are worried about competition and 71% cite economic pressures.

Another hurdle affecting the local business landscape is the struggle to find skilled labor. The survey indicates that 54% of Charlotte’s small-business owners are finding it tough to recruit employees with the necessary skills, which is significantly higher than the 37% reported nationally. O’Dell recognizes the talent gap, noting that as the local economy grows rapidly, the demand for skilled workers is surpassing the available supply.

Funding Woes

On top of this, 51% of business owners in Charlotte claimed they are not securing enough funding to sustain their operations, a notable contrast to the 40% nationally. This indicates a pressing opportunity for local banks to explore innovative ways to support small businesses seeking capital. U.S. Bank is already stepping up to the plate with its Small Business Administration (SBA) lending program, which O’Dell describes as “truly geared toward small businesses who wouldn’t otherwise have access to capital.”

Interestingly, the report highlighted that 90% of business owners in Charlotte see land financing as crucial for achieving their goals in the coming year, in stark contrast to just 72% of owners nationwide who share that view.

Hope on the Horizon

Looking toward the future, O’Dell is confident that local business owners have gained valuable experience in navigating the economic uncertainty we’ve seen this past year. He notes that with inflation easing from historic highs and the potential for interest rate cuts, there’s plenty of cause for optimism.

As Charlotte continues to grow and evolve, the sentiment among small-business owners reflects a promising future, underscoring their resilience and adaptability in an ever-changing landscape.