Small Business Insights: 2022 survey

Getting paid is often the number-one problem small businesses face. Find out how much small businesses are owed in unpaid invoices and if cash flow problems are on the rise.

3 in 5 small businesses have unpaid invoices

US small businesses with unpaid invoices are owed around $30,000, on average



Almost half of small businesses have cash flow problems



More than 1 in 4 small businesses report worse cash flow problems than last year

At least 1 in 4 small businesses with cash flow problems are using credit cards

Getting funding can be another major challenge for small businesses. Find out who they’re turning to for financial support and how many are worried about their financial health.

1 in 3 small businesses need extra funding



A third of small businesses that get funding use it for growth, but almost as many need it for emergencies

Roughly half of small businesses are funded with the business owner’s personal savings

Half of small business owners who self-fund their business use income from other jobs

Small business start-up costs are roughly $11,000 on average in the US

Three-quarters of small businesses are currently financially stable or growing

One in five small businesses report worse finances than a year ago



Three in five small businesses are worried about how much revenue they’re generating



Generating demand is always top of mind for small businesses. Learn more about their growth goals and if price increases are on the horizon.

For 8 out of 10 small businesses, stability or steady growth is the goal



As few as 1 in 2 small businesses know which marketing strategies are most cost-effective



Social media and email marketing are two of the top marketing strategies for small businesses



1 in 2 small businesses say their digital ad campaigns can’t compete with larger businesses 

Small businesses rely on online sales as much as they do on in-person sales

Small businesses that sell online say their own website is the most important source of revenue



Prices are rising at more than 1 in 2 small businesses



13% is the average price increase reported by small businesses

Exit strategies: Up to 1 in 4 small business owners will pass their business to a family member

A daunting step for any small business is hiring workers for the first time. Running payroll, providing benefits, and holding onto skilled workers become essential to everyday operations. Learn how small businesses are navigating this.

More than 1 in 4 small businesses want to expand their workforces, few plan reductions

Hiring is a challenge for 1 in 2 small businesses

More than a third of small businesses currently have job vacancies



More than 1 in 2 small businesses are preparing to increase pay for workers

Where small businesses are planning pay increases, they expect to give raises of 7% to 12% on average

Up to 1 in 2 small businesses are struggling to persuade skilled workers to stay

1 in 2 small businesses see remote work as an effective employee retention tool

Around 1 in 5 small businesses are planning to expand employee benefits

Paid time off is the employee benefit small businesses are most likely to increase

Small businesses are the creative engines of the economy. Learn more about their innovation and investment plans.

When small businesses develop innovations of their own, new products or services are the priority

1 in 4 small businesses own intellectual property

When small businesses buy new innovations, digital technology is the top priority

When investing in new digital technology, website upgrades are a high priority

Around 1 in 2 small businesses have immediate investment plans

Product or service innovations are the top priorities for small business investment

Having effective business tools such as accounting or payroll software are just two pieces of the puzzle when managing a small business. In this section we also dive into the management capabilities of small business workers.

3 in 5 small business owners admit they sometimes feel out of their depth

Less than 3 in 5 small business owners and leaders have had any management training

Almost half of small businesses use spreadsheets to manage their finances

1 in 5 small businesses don’t know how much monthly revenue they need to be profitable

1 in 10 small businesses don’t know where their business is most profitable

1 in 5 small businesses don’t know how to measure cash flow

1 in 10 small businesses don’t know what their largest monthly expense item is

Inflation has been a persistent challenge for small businesses in recent years. As we discover below, it remains high on the list — among other barriers to growth.

Inflation is the top external challenge small businesses currently face

Costs are higher than expected for around half of small businesses

Higher costs mean smaller businesses are more likely to increase their own prices

Lack of funding is the greatest barrier to growth, according to small businesses

Low customer demand is a top challenge for small businesses today

Cybersecurity is a major technology challenge for small businesses

Inefficient processes create significant internal challenges for small businesses

The COVID-19 pandemic had a huge impact on small business revenue and for some, it spelled disaster. But the pandemic also coincided with a surge in new business growth and, as we learn below, other unexpected outcomes.

1 in 5 small businesses are paying closer attention to their finances than they did before the pandemic

Half of small businesses have made permanent changes to their workforce since the pandemic began

COVID-related labor cost pressures are a concern for up to 1 in 2 small businesses

9 out of 10 small businesses with higher labor costs are being forced to cut back in other areas

The total sample size for each survey, fielded every three months in the US, UK, and Canada, is 2,850 small business owners and decision makers, comprising 1,500 respondents in the US, 750 respondents in the UK, and 600 respondents in Canada.

Demographics

Firmographics

Online surveys commissioned by Intuit QuickBooks in September 2022 and December 2022 with a total of 2,850 respondents for each wave: 1,500 in the USA, 750 in the UK, 600 in Canada. All respondents are over the age of 18. More than 95% of respondents are over the age of 25. Overall, 3 in 5 respondents are small business owners. The remainder are senior decision-makers within small businesses who have good knowledge of the business’s finances, operations, and strategic priorities. For the purpose of this survey, small businesses are defined as having 100 employees or fewer. Roughly a quarter of the businesses surveyed have no employees while around two-fifths have 1 to 10 employees. The remaining third have 11 to 100 employees. Annual revenues range from less than $5,000 per year (or equivalent if based in the UK or Canada) to more than $5 million (or equivalent). In general, the largest cohort of respondents have annual revenues of between $100,000 and $499,999 per year (or equivalent): 23% in the US, 16% in the UK, and about 25% in Canada. More than half of the small businesses surveyed are service-based while roughly a quarter sell products. The remainder sell a mix of products and services.