CPA Practice Advisor - 16

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THE STATE OF

SMALL

BUSINESS

2019

JEFF HOFMANN

Managing Director,
Small Business Lending, Chase
Jeff Hofmann is Managing
Director of Small Business
Lending at Chase. A member
of the Chase lending team for
nearly 15 years, his primary
responsibilities include
developing and integrating
strategies across the marketing
and credit lifecycle, product
development, acquisitions,
customer engagement, customer
retention and credit.

As 2019 comes to an end, how would
you rate the state of small business over
the past year?

Overall, this has been a dynamic year
for entrepreneurs and businesses. More
than ever, we're seeing decision-makers build
and evolve their business strategies with an eye
toward global issues and the global economy. Local
businesses also have a focus on the impact that
geopolitical decisions have on their customer base,
manufacturing procedures, overall bottom line and
other elements of their business.
With these considerations at play, business
owners have been more enthusiastic about growth
opportunities for their businesses over the past 12
months. They are also expecting to see an increase
in revenue and sales growth compared to this time
last year, according to the annual JPMorgan Chase
Business Leaders Outlook survey (available at
chase.com/2019BusinessOutlook). And it's not
just rising company profits that have business
owners encouraged as the year comes to a close
- economic expansion and the ability to invest
back in their own companies have also been key
emerging themes in 2019.

DECEMBER 2019 ■

What were the most noteworthy small
business ideas or trends that made an
impact in 2019?

It's always so inspiring to watch business
owners turn their creative ideas and
business goals into reality. While there have been
many types of businesses emerging over the past
12 months - everything from blogging, podcasting,
event planning and craft brewing - we've really
seen growth in tech-based companies. Software
engineers and developers continue to create
businesses to maintain software on a variety of
platforms and keep companies on the forefront of
emerging technologies. Virtual reality computing
(VR) is another area gaining momentum in the
tech space. According to Statista, by 2020 the
worldwide size of the VR market will be in excess
of $40 billion.

Entrepreneurs aren't naïve, however, and their
optimism is not without some caution. Midsize
businesses rank the limited talent pool as their
No. 1 challenge with 28% extremely concerned
about the limited supply of candidates. Keeping
up with technological advances also topped the
list of concerns for business owners this year.

Q:
A:

What do you attribute to the ongoing
rise in small business lending in the U.S.?

It's true, lending to entrepreneurs and local
businesses has been strong over the past
few years, and 2019 is no exception. A lot of this
has to do with business owners' optimism toward
the business economy-at-large and growth within
their own companies. Because the economy is
experiencing moderate growth, entrepreneurs
who have good credit are able to secure capital
for their business needs.
It is important for business owners to make sure
they have the resources to sustain their current
level of business while positioning themselves for

future growth. Banks today are able to provide
various options for business owners looking for
the type of financing that's right for their business
needs, from short-term options, like a Chase Ink
business credit card for everyday operation to longterm options - like a line of credit or business
loan - for larger investments. It's all about having
access to capital and managing effective cash flow.

www.CPAPracticeAdvisor.com

Technology accessibility continues to
increase - as we saw this year - so
understanding how to build credit is more
crucial than ever. With this in mind, how can
CPAs help small business owners set themselves
up for success in conversations with potential
investors?

We hear from so many business owners
that securing capital for their business is
a stressful process. That's why it is so important
to make sure business owners know what type of
relationship they're getting into before deciding
on an investor. Remember that investors will be
with you for the long run. Knowing what questions
to ask beforehand, such as what their process is
like and what their typical investment size is, will
help business owners achieve long-term success.

http://www.chase.com/2019BusinessOutlook http://www.CPAPracticeAdvisor.com

CPA Practice Advisor

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