Survey Finds Chicago Small Businesses Optimistic About Their Future, But Less Confident in the City’s Economic Outlook

CHICAGO — In conjunction with University of Illinois Chicago College of Business Administration, the Chicagoland Chamber of Commerce yesterday announced the findings of the 2024 Chicagoland Small Business Outlook Survey at mHub in the West Loop.

The 2024 Small Business Outlook Survey, sponsored by TikTok, provides a snapshot of the attitudes and sentiments of the city’s small business community. Key findings include insight into how businesses are trying to access capital in a digital economy, the challenges in recruiting and retaining qualified employees, and ways to grow revenue in light of higher taxes and economic uncertainty.

The survey results are based on responses from small businesses across various industries, highlighting their strategic priorities and the challenges they anticipate in the coming year.

Key Findings

Overall Business Outlook

• Women-owned businesses represent the majority of survey participants.
• Most businesses — 71%, to be exact — expect to perform better in the next 12 months.
• However, a lower percentage of businesses (57%) expect the Chicagoland economy will stay the same or become stronger over the next 12 months.
• While businesses are primarily focused on growth strategies, many are also exploring ways to reduce costs to improve their financial position.
•57% of participants agreed or strongly agreed that they feel safe in their current business location, a positive indicator of confidence in local business environments.

Access to Capital

• 57% of survey respondents express moderate to high confidence in their ability to access capital, particularly for marketing initiatives, underscoring the need for financial resources to boost brand visibility and expand customer reach.

Workforce Challenges

• While most businesses feel confident about their ability to maintain safe workplaces and promote employee morale, many struggle with recruiting and hiring qualified employees and offering competitive pay.

Regulatory and Economic Environment

• The highest-rated concerns among respondents are revenue growth, followed by taxes and economic uncertainty.

Marketing and Growth Strategies

As part of their growth strategies over the next 12 months, most businesses plan to improve their products and services while also increasing their promotional efforts. Notably, small business owners said marketing their small business was the highest-rated need for additional capital. This insight highlights the growing demand for effective marketing tools and platforms, an area where TikTok is uniquely positioned to provide innovative solutions. By using TikTok, small businesses can explore new ways to market their products and services to a broader audience.

“Small businesses are the backbone of our economy and employ many workers in Chicago and across the nation. The 2024 Small Business Outlook Survey offers us key insight into the unique challenges small businesses are facing as they continue to work to recover from some of the most difficult years on record. Federal pandemic funds are set to expire, which will lead to significant budget deficits for Chicago and many other taxing districts. This makes it imperative that our leaders prioritize reductions, efficiencies, and growth policies, and not impose additional taxes on small businesses amidst increasingly uncertain economic times,” said Jack Lavin, President & CEO of the Chicagoland Chamber of Commerce.

“TikTok serves as a crucial commercial hub for 280,000 Illinois businesses and 6.2 million people across the state to discover, create, and connect with audiences unlike anywhere else,” said Sofia Hernandez, Global Head of Business Marketing at TikTok. “Right in the heart of Chicago, small businesses and entrepreneurs are tapping into TikTok’s unique marketing solutions to drive not only business impact, but also create new connections within their local community. We are proud to partner with the Chicagoland Chamber of Commerce as another effective way to equip small businesses with the tools to continue growing and succeeding in today’s digital economy.”

“UIC Business is proud to partner with the Chicagoland Chamber of Commerce on this survey,” said Sandy Wayne, Ph.D., Dean of University of Illinois Chicago College of Business Administration. “These results provide essential insights into enhancing our local business environment to support and grow small businesses.”

Interested in learning more? Check out the full report.

About the Chicagoland Chamber of Commerce

The Chicagoland Chamber of Commerce is a nonprofit organization that represents more than 1,000 member companies, which collectively employ 400,000 employees and generate $24 billion in revenue. The Chamber combines the power of membership with its legacy of leadership and business advocacy to drive a dynamic economy. To learn more, visit www.chicagolandchamber.org.

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Press Contact

Joel Reese, Vice President of Communications and Marketing, [email protected], (773) 931-4948