The majority of Washington, D.C., small business owners (52 percent) believe 2011 will be better than 2010, with 37 percent believing it will be the same as last year and only 11 percent expecting it will be worse, according to the latest Citibank small business survey. The survey's findings show that after battling through the recession, many of Washington's entrepreneurs feel confident about the coming year and are finally poised for growth.

Moreover, despite the challenging conditions over the last few years, Washington, D.C., small business owners remain passionate about their choice of career, with 83 percent saying they would start their business again even if they knew then what they know now about the challenges they would face, and 72 percent saying they would recommend entrepreneurship as a career to their children.

?Our survey reveals some very encouraging signs in the Washington, D.C., business community, as many entrepreneurs are confident about 2011 and ready to grow as the economy improves,? said Raj Seshadri, the head of Small Business Banking at Citibank. ?While we continue to closely watch hiring and expansion plans, we are thrilled to see that the entrepreneurial spirit remains alive and well in our nation's capital.?

Business Environment Full of Unknowns

Of course, from unemployment to the rising costs of running a business, Washington, D.C., entrepreneurs still face many unknowns. Business owners say rising raw material prices (25 percent) and the increasing cost of healthcare (18 percent) pose the biggest challenges in 2011. In addition, Washington's entrepreneurs appear split when asked about the condition of their business, with 40 percent saying their business is the same as last year, 30 percent saying it is better and 30 percent saying it is worse.

Despite their proximity to government, Washington, D.C., business owners are shrugging off concerns over regulation, with the vast majority expecting government policies to be more favorable (25 percent) or the same (50 percent) in 2011, and only 25 percent expecting policies to be less favorable.

When discussing what would make the most positive impact on their business this year, respondents cite reducing taxes (29 percent) and increasing credit availability (20 percent.) And though 79 percent of Washington, D.C., small business owners remain concerned over another downturn in the economy, 73 percent say they are very or somewhat prepared.

Business Costs Expected to Rise, Hiring Plans Tepid Yet Higher than National Average

According to the survey, Washington, D.C., small businesses are more likely to increase hiring (23 percent) compared to the national average of 14 percent. When discussing what would spur hiring, 78 percent say increased sales.

On an array of expenses, the majority of respondents expect the costs of running their business to increase this year. According to the survey:

  • 86 percent expect utility costs to rise
  • 80 percent expect the cost of raw materials to rise
  • 79 percent expect the cost of healthcare to increase
  • 70 percent expect taxes to increase
  • 68 percent expect the cost of borrowing to increase

At the same time, 61 percent do not expect to raise the prices they charge this year, compared to 39 percent who say they will raise prices.

To grow or improve their business in 2011, Washington, D.C., small business owners plan to work longer hours themselves (57 percent), increase marketing (52 percent), or negotiate better prices from suppliers, vendors, or landlords (46 percent). More than half (57 percent) say they plan to offer new products or services in the coming year, while 45 percent plan to expand into new markets.

About the Survey

This Citibank poll was conducted via telephone by Abt SRBI from Jan. 11 to Jan. 28 among a national random sample of 200 small businesses in Washington, D.C., with revenue over $100,000 and no more than 100 employees. The margin of error is approximately +/- 7 percentage points. Surveys are subject to other error sources as well, including sampling coverage error, recording error, and respondent error.

About Citibank

Citibank is a member of Citi®, the leading global financial services company, which has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.

© 2011 Citigroup Inc. Citibank, N.A., Member FDIC. Citi and Citibank and Arc Design are registered service marks of Citigroup Inc.

Tags/Keywords: Citi, Citibank, small business, entrepreneurs, start-up

All Media Inquiries:
Citibank
Robert Julavits, 415-658-4310
Robert.w.Julavits@citi.com