WILMINGTON, DE — Small businesses across the Mid-Atlantic remain broadly optimistic despite inflation, tariff uncertainty and recession concerns, with 92% reporting that they are meeting or exceeding performance expectations, according to a survey commissioned by WSFS Bank (Nasdaq: WSFS).
The findings suggest many smaller firms have adapted to a challenging economic environment through cost controls and operational adjustments while continuing to pursue growth.
Among the 505 business owners and decision-makers surveyed, 66% expect their companies to grow over the next 12 months and 52% anticipate higher revenue during the coming year.
Confidence was strongest among businesses with 100 to 499 employees and companies founded within the past five years. In both groups, 77% expressed optimism about their prospects over the next year.
While sentiment remained positive overall, respondents identified inflation as the most significant pressure on performance. Among businesses reporting negative impacts, 52% cited inflation as a primary factor, followed by cost-of-living concerns at 43%, tariff-related uncertainty at 40% and recession fears at 33%.
Many businesses have responded by tightening expenses and adjusting procurement strategies.
The survey found that 51% have reduced non-essential spending, 31% have shifted to lower-cost suppliers and 27% have renegotiated contracts with existing vendors.
“Small business owners have proven to be skilled navigators of uncertainty, turning economic challenges into opportunities for refinement,” said Candice Caruso, senior vice president and chief business banking officer at WSFS Bank.
The survey also examined relationships between businesses and their financial institutions. Overall satisfaction with banking partners stood at 84%, though the data indicated that newer, smaller and lower-revenue businesses may seek additional advisory support and financial guidance.
Technology adoption continued to expand across the small-business sector.
More than four in five respondents, or 81%, reported using artificial intelligence tools for at least one business function. The most common uses were data analysis and information gathering at 43% and marketing and content creation at 42%.
Larger businesses reported higher rates of AI adoption, suggesting that scale and available resources continue to influence how companies deploy emerging technologies.
The survey was conducted by research firm Opinium and included Mid-Atlantic business owners and decision-makers representing companies with annual revenue of up to $5 million and at least two employees.
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