2024 Business Barometer: Taking the pulse of U.S. small and middle market business leaders

Umpqua Bank has always been committed to small and middle market businesses. They make up the fabric of our communities – providing jobs, products and services that keep our economy vibrant. When they do well, we all benefit.

Additionally, our approach to banking is to understand customers and their needs, both on a one-on-one level and on a broader level too.  When looking at customers, we want to understand how their approach might fit into larger trends and pressure in the marketplace.

This appreciation and want for understanding are why we conduct the Business Barometer report each year. It’s a survey of 1,200 small and middle market businesses nationwide that measures their mood and mindset on key issues. This isn’t a look at just Umpqua customers, this is a representative study of business leaders from across the country so we can get an accurate measurement of the overall business climate.

The Business Barometer looks in-depth at how business owners and executives feel about the economy. It also looks at their growth prospects and their strategic plans for the year ahead. And it dives into topical issues like AI, cybersecurity and more.

Here are a few highlights of what we found:

• For the first time in its six-year history, the study shows a widening gap between small and middle market businesses. Middle market optimism and key growth indicators have surged to six-year highs, while small businesses are feeling more cautious as they manage the impacts of inflation and higher costs for capital.
• More companies are adopting AI in their businesses, with middle market companies leading the pack.
• Cybersecurity remains a very real threat for businesses of all sizes. Middle market businesses have been quicker to adopt and implement protective measures. Much of the change has been driven by the popularity of instant payments. For middle market companies, more than 6 in 10 now use instant payment technology; of those, 93% have or plan to implement safeguards against real-time fraud. About 43% of small businesses use instant payments, with 66% having implemented or planning to implement safeguards for the year.

There’s a wealth of valuable insight in the report. To download your copy, visit umpquabank.com/business-barometer.