LAS VEGAS – Nevada State Bank’s annual Small Business Survey reveals a continued confidence in an improving Nevada economy, but a less rosy view of the national economy, with more than half of all Nevadans surveyed saying that the U.S. economy is headed in the wrong direction.
The bank’s recent survey of more than 400 small business owners, operators and managers throughout the state found that roughly six in 10 respondents believe Nevada’s economy is headed in the right direction, relatively unchanged from last year. Perceptions about the national economy worsened slightly, with 53 percent stating the economy is headed in the wrong direction, up from 48 percent a year ago.
Similar to the previous survey, about four in 10 respondents feel the business environment in the Silver State has improved over the past year, but those who feel it has worsened increased from 13.7 percent one year ago to 19.3 percent in this year’s survey. Another 51.8 percent of Nevadans who were surveyed say they still have not fully recovered from the Great Recession.
“Small businesses account for more than half our private sector job growth and are extremely important to the success of our bank,” said Dallas Haun, chairman and CEO of Nevada State Bank. “If our business leaders and government officials understand their concerns, maybe we can help address them and move forward to a more positive future.”
The survey asked, “What is the single most important challenge you face as a small business today?” The top concern was attracting new customers and new business, with hiring and retaining quality employees, financial stability and cash flow, and government regulation and legislation following close behind.
Several positive signs in the past year include an increase in small businesses indicating they plan to expand their operations in the next 12 months. More than 45 percent reported increased profitability. Businesses that plan to decrease their number of employees was half the number reported during the prior year. Seven in 10 plan to keep their employee base the same, unchanged from last year.
Access to capital and credit is important for nearly all small businesses, and nearly 80 percent of those surveyed believe that it remains difficult for a small business to get credit from a bank, similar to the response over the last two years. Nearly 30 percent of this year’s respondents have applied for a loan, credit line or other type of financing in the past year (a decrease of more than 50 percent), with just under 50 percent of those approved for the full amount. This is down from 62.4 percent in the previous Nevada State Bank Small Business Survey.
New this year were questions surrounding community involvement, charitable giving and employee volunteerism. The survey found that more than 80 percent give back to the community through in-kind donations, cash donations, sponsorships, or employee volunteerism, or through serving on nonprofit boards or committees.
Nevada State Bank, working with Las Vegas-based research firm Applied Analysis, surveyed businesses throughout the state that generate annual revenues between $500,000 and $5.5 million.
For a copy of Nevada State Bank’s 2016 Small Business Survey, please visit www.NevadaSmallBusiness.com/survey.
About Nevada State Bank (@nevadastatebank)
Nevada State Bank, a division of ZB, N.A., is a full service bank offering a complete range of consumer, private and business banking services with branches statewide. Founded in 1959, Nevada State Bank serves 20 communities across the state of Nevada. ZB, N.A.’s parent company is Zions Bancorporation, which is included in the S&P 500 and NASDAQ Financial 100 indices (NASDAQ: ZION). For more information on Nevada State Bank, call 702.383.0009 or access www.nsbank.com.