Entrepreneurs are optimistic about their business' chance for success this year (67 percent), according to the 2014 Cox Business Barometer announced today.  One possible result of this optimism was reflected in business owners' summer vacation plans, with 66 percent planning to take at least a one-week vacation this summer. 

The study also unveiled that while businesses are optimistic about their own future, they are concerned about economic uncertainty and its potential to threaten the success of their business, including the Affordable Care Act.  When ranking their level of concern on issues that were immediate threats to small and medium-sized business success, 88 percent of entrepreneurs were either "very concerned" or "somewhat concerned" about economic uncertainty. This compares to 66 percent who had the same sentiments about the Affordable Care Act.

Cox Business conducted a blind survey of more than 600 U.S. small business owners. The survey, conducted in late April, was released this week to coincide with National Small Business Week. Complete findings from the 2014 Cox Business Barometer are available at www.coxblue.com/sbwsurvey2014.  

"By many estimates, small businesses have generated 65 percent of the net new jobs since 1995, so their success plays an enormous role in the overall economic direction of our country," said Steve Rowley, senior vice president of Cox Business. "For the second consecutive year, our survey has found that business owners are expressing optimism about their own future, which means they are taking the right steps to increase efficiency and service, and engage customers in ways that drive revenue."  

In fact, 62 percent of business leaders are confident in their use of technology to improve business performance. Marketing also is playing a major role in helping businesses reach their revenue goals.

Email ranks as the most effective tool for customer engagement, which is consistent with Cox's 2013 survey among small business owners.  Respondents ranked the effectiveness of communications tools as follows:

• 82 percent - email
• 80 percent - phone 
• 78 percent - in-person events
• 58 percent - social marketing
• 40 percent - texts/SMS
• 39 percent - direct mail

While social media is less popular for customer communication, interestingly, Facebook is the most used channel with 52 percent of small businesses using the social network to notify customers of special promotions. 

A majority of business owners (60 percent) have taken the time to develop a marketing plan for 2014 – with 56 percent of respondents focusing their marketing efforts equally among existing and potential customers.  These efforts may include a mix of email campaigns, phone outreach and in-person events as business owners ranked these three communications channels as the most effective in terms of improving customer engagement.

"As customers become more knowledgeable about what they buy before they even talk to a business, new expectations are being established," said Jim Blasingame, leading small business expert and author of The Age of the Customer.  "But small business owners and managers, in particular, should be excited about the unique opportunity they have to meet these new expectations with the array of online resources available to them in applications and pricing that fits a small enterprise."