Managers of very small businesses are becoming increasingly optimistic

According to the 5th edition of the American Express and BVA Microbusiness Survey, microbusiness owners are increasingly optimistic about their companies’ economic performance, with 72% of them saying they are optimistic—an increase of 4 percentage points compared to 2023 and 6 percentage points compared to 2022.
 

For the first time in five years, improving cash flow has become the top priority for leaders of very small businesses, with 40% of them citing it as their top priority—a 12-point increase from 2023. This priority is closely followed by the need to find new customers (37%) and maximizing profits (30%).
 

However, leaders of very small businesses continue to face significant challenges, with 76% of them reporting an increase in at least one of their major expense categories since the end of 2023. The three main expense categories are purchases of raw materials, goods, and services necessary for business operations (50%), taxes (49%), and energy (47%).
 

To finance their main expenses, the majority of microbusiness owners still rely on their cash on hand, but this share is declining (83% compared to 91% in 2023). Traditional banking solutions such as lines of credit or overdrafts are considered the most attractive options for optimizing cash flow (30%), followed by installment payments (29%) and deferred payment solutions for paying suppliers (27%).
 

Sylvia Desloubières, Sales Director for Small and Medium-Sized Businesses at American Express France, stated that owners of very small businesses are looking for ways to improve their cash flow and that we are seeing a diversification in the solutions they use. American Express offers solutions with deferred payment terms that allow owners of very small businesses to pay their suppliers immediately and have the amount debited later, enabling them to optimize their spending without straining their cash flow.