The highest performing small businesses that participated in a recent survey for American Express are owned or managed by entrepreneurs who are significantly more inclined to take risks, make growth a priority, invest in their business and reward repeat customers.
The survey was taken for the 11th annual American Express Open Small Business Monitor, which released each spring and fall. The report is based on a nationally representative sample of 839 small business owners/managers of companies with fewer than 100 employees. The anonymous survey was conducted via telephone from Aug. 23 to Sept. 21 and has a margin of error of +/- 3.4%.
For the first time the report categories respondents into four groups based on their performance over the preceding three years: high achievers, strivers, sustainers and strugglers. High achievers represent six percent of the total survey sample and, on average, have spent 26 years in business, employ 18 people. They also have grown revenue by 34 percent over the last three years compared to 10 percent growth for the total survey population.
High achievers were found to take more risks. More than two-thirds have increased their appetite for risk compared to one year ago (67%, versus 35 percent of the total population). An overwhelming majority (93 percent) say they are planning to grow their businesses over the next six months, compared to 69 percent of the total survey group. More than half (51%) of high achievers have growth as their top priority, compared to 31 percent of the total survey group. More than three-quarters (78%) are planning to make capital investments compared with 49 percent of the total survey group. Seven-in-ten use social media versus 49 percent overall. Finally, 40 percent offer loyalty rewards versus 22 percent overall.
