|Millennials, Minorities Most Optimistic About Small Business Growth in 2017|
Yelp Reveals Findings of Second Annual
Findings show Millennial respondents and minority-owned businesses are most optimistic about 2017. On average, Millennial respondents project 69% more revenue growth than their older counterparts for 2017, and minority-owned businesses project 49% more revenue growth than white-owned businesses for 2017.
Reflecting on 2016
The majority (68%) of Yelp-listed small businesses feel their business’ performance met or exceeded expectations in 2016. As a long and divisive presidential election came to a head last year, we asked respondents how the political climate impacted their business. White business owners were 28% more likely to say it had a negative impact on their business than minority business owners. Also, more Millennial respondents said the 2016 political climate had a positive effect on their business compared to other age groups.
There are many political topics already being debated by the new
“Regulation, while it can create challenges for small businesses, also
ensures that businesses provide a safe and efficient environment for
customers and employees,” says
Challenges in 2017
While the data shows that businesses are generally optimistic about 2017, respondents did cite their biggest perceived challenges for the year ahead. The majority of businesses (57%) said attracting and retaining customers is going to be their biggest challenge in 2017, followed by managing a limited marketing budget (35%), competition from larger businesses (31%), and attracting and retaining employees (25%).
“Online reviews have allowed small businesses that offer great value and
service to compete
with national chains, and Yelp provides a free platform on which
businesses can market their offerings,” Eis says. “Additionally, a study
Nearly all survey respondents (96%) report they collect customer
feedback in some form. Two in three businesses (68%) collect feedback
from online review sites such as Yelp and
Although Yelp’s 2016 survey
found that 74% of business owners use social media as a digital
marketing tool, this year’s findings show that just 2% percent of
business owners report gathering customer feedback from social media
Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 2.8 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
* Calculated as the number of unique devices accessing the app on a monthly average basis over a given three-month period, according to internal Yelp logs.
** Calculated as the number of "users," as measured by Google Analytics, accessing Yelp via mobile website on a monthly average basis over a given three-month period.
*** Calculated as the number of "users," as measured by