Press Release Shows Optimistic Outlook for the Future of
New Quarterly Report from Visa – Small Business Spend Insights
– Provides Data-Driven Perspective on Small Business Confidence and
Small Businesses Optimistic on Future Revenue and Profits but Concerned About Rising Costs of Energy, Healthcare and Taxes
Visa Press Release- June 6, 2007
A new small business spending report released today by Visa USA
indicates that, while small businesses remain relatively bullish
about revenue growth, increasing expenditures on energy, healthcare
and taxes are pressing concerns for small business owners. The
report, titled "Visa Small Business Spend Insights," will be
published quarterly and provides a comprehensive view of the U.S.
small business climate by combining a poll of U.S. small businesses
with the most current Visa spending data on small business cards.
"More than most, small business owners are susceptible to the
effects of rising costs and fluctuations in the economy. As such,
they need to hedge against spending increases and economic
uncertainty by making smart IT investment decisions and utilizing
cash management tools such as payment cards," said Wayne Best,
senior vice president, Business and Economic Analysis, Visa USA.
Small Business Spending Outlook
The report identified the following four key spending areas that are
currently of top concern among small businesses:
- 75 percent of the small business owners surveyed believe that energy
spending will increase over the next six months.
- The average spend per transaction on Visa Business cards for
energy-related expenditures increased 18 percent for the 12 months
ending February 2007.
- 34 percent of respondents expressed concern that cost of health care
insurance will increase over the next six months, with this concern
being the highest among small businesses with two or more employees.
- The average spending on Visa Business cards on healthcare-related
expenditures increased 17 percent for the 12 months ending February
- 20 percent of respondents expressed concern about rising taxes in
the next six months.
The average spending on Visa Business cards on tax preparation
services and tax payments increased by 80 percent for the 12 months
ending February 2007.
- Purchases for tax payments and tax preparation have an average spend
per transaction that is three times the size of the average purchase
for all Visa Business card transactions.
- 22 percent of small businesses surveyed expressed concerns about
attracting new customers over the next six months
- The average spending on Visa Business cards for advertising,
management consultants/public relations, publishing and related
expenses increased by 56 percent for the 12 months ending February
2007, twice the growth rate of expenditures in all categories.
Small Business Profit & Loss Overview
The report results indicate that the future outlook for both small
business revenue and profits is positive based on the following key
- Nearly half (45 percent) of small business owners surveyed expected
an increase in revenues over the next six months, compared with only
11 percent who expected a revenue decrease over the same period.
- 39 percent of small business owners surveyed expected an increase in
profits over the next six months, compared with 19 percent who
expected lower profits over the same period.
- In terms of cash flow, only 17 percent of those surveyed expect that
they will need to borrow more money in the next six months, while
just 18 percent expect to have issues collecting payment in the same
"Visa, as a leading provider of small business payment products and
processor of financial transactions, has a unique window into the
spending habits of U.S. small businesses," said Raghav Lal, senior
vice president, small business, Visa USA. "By comparing small
business attitudes with current Visa spending, we can provide
insights into small business confidence and outlook. This analysis
enables Visa and our member financial institutions to deliver small
businesses with payment solutions tailored more closely to their
For more information on Visa Small Business Solutions or to view the
complete Visa Small Business Insights newsletter, go to
About Small Business Spend Insights
Visa Small Business Spend Insights is a quarterly survey to monitor
the relative economic confidence of small businesses with $50,000 -
$25,000,000 in annual revenue. More than 600 small businesses are
included in the quarterly survey.
About Visa USA
Visa USA is a leading payments brand and the nation's largest
payments system, enabling banks to provide their consumer and
business customers with a wide variety of payment alternatives
tailored to meet their evolving needs. Visa USA is committed to
increasing the choice, convenience, acceptance and security of Visa
payments for all stakeholders - financial institutions, cardholders
and merchants. In the United States, more than 521 million
Visa-branded cards have been issued by our 13,320 financial
Visa products generated nearly $1.8 trillion in total volume in the
United States through March 2007 and enjoy unsurpassed acceptance
around the globe. For more information, visit www.visa.com
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