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Constant Contact Pulse Survey: Small Businesses Experiencing Revenue Growth In 2012

Stocks in this article: CTCT

A majority of small businesses are experiencing revenue growth in 2012, according to new survey data from Constant Contact®, Inc. (NASDAQ: CTCT). While the Constant Contact Small Business Pulse Survey reveals optimism about 2012, attracting new customers continues to keep small business owners up at night.

Strong Start for Majority of Small Businesses in 2012

The health of small business is improving in 2012, with the majority of small businesses reporting revenue increases over 2011. When asked how their organization has done so far this year:

  • 59 percent said revenues increased.
  • 30 percent said revenues remained flat.
  • 11 percent said revenues decreased.

The continued outlook is positive, with 79 percent of small business owners expecting revenues to increase over their 2011 revenues. When asked what their revenue expectations are this year compared to last year:

  • 52 percent expected their revenues to increase more than 10 percent.
  • 27 percent expected their revenues to increase less than 10 percent.
  • 13 percent expected their revenues to remain flat.
  • 4 percent expected their revenues to decrease less than 10 percent; 3 percent expected their revenues to decrease more than 10 percent.

Rising costs remain a challenge, with 45 percent of small businesses reporting their operating costs have increased. Further, a full 30 percent report their cash flow is inadequate and preventing them from growing their business. Of the 19 percent of small businesses that have sought funding this year, only 16 percent received some or all of the funding they needed.

Small Businesses Still Not Hiring

Increased revenue has not yet translated into hiring. Sixty-six percent of small businesses are not planning to hire additional full-time employees in the next six months. Almost 20 percent said they need to hire more employees but can’t.

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