SMB owners are feeling very optimistic about business prospects in 2017 based on a recent survey. Growth industries like healthcare, accommodations, and professional services are driving growth among SMBs. However, issues like rising healthcare costs, cybersecurity threats, and adapting to Millennial workers' needs may challenge SMBs in the coming year. Over 550,000 SMBs could fail in 2017 due to cybersecurity breaches if trends continue. The Latino-owned business sector is a major driver of jobs and economic growth with revenues projected to reach $640 billion in 2017.

1. 2017 PREDICTIONS
Growth Industries and Locations,
Plus the Topics that Will Matter Most

2. SMB owners most optimistic in 9 years
2
78%
56%
32%
35%
52%
65%
77%
75% 75%
77% 76%
73% 73%
81%
79%
82%
Jan 08 Aug 08 Oct 08 Mar 09 Aug 09 Nov 09 Dec 09 Jan 10 Nov 10 Dec 10 Dec 11 Dec 12 Jan 14 Jan 15 Jan 16 Jan 17E
Positive Outlook About Future Business Prospects
Source: The Business Journals SMB Insights (Base: Businesses with 5-499 employees); 3%-4% difference between years is statistically significant. Q: “How do you think your
company’s prospects will change over the next 12 months? By prospects, we mean the general success of your business.” (2008-2013) “What is your level of confidence in the
success of your company (based on revenue, profitability & growth) over the next 24 months?” (2014-2017); E=predicted estimate/preliminary data from SMB Insights 2017
The Business Journals’ latest SMB Insight study was fielded the day after the Presidential election. According to
preliminary results (400 completed interviews), small and mid-sized business owners are continuing to feel confident in
the future success of their companies. It is one of the highest levels seen to date.

3. Business growth, post-recession, occurred
in the 50 largest MSAs. Given the current
sentiment, it will continue in 2017.
3
According to the latest Census Bureau data, the top 50 MSAs (Metropolitan Statistical Areas) in the U.S. are home to two-thirds of all
businesses nationwide. Seventy-four percent (74%) of these 50 markets experienced business establishment growth between 2009
and 2014, contrasted by far fewer growth markets among smaller MSAs (35%).
Source: Census Bureau, Business Dynamic Statistics, 2014 data released September, 2016. Includes all business establishments with 1 or more employees.
Austin +15.3% Washington, DC +4.7% New Orleans +1.8% Indianapolis -0.2%
Miami +11.26% Portland +4.4% St. Louis +1.7% Buffalo -0.2%
Houston +8.7% San Diego +3.6% Minneapolis +1.7% Philadelphia -0.5%
Dallas/Ft. Worth +7.1% New York +3.5% Kansas City +1.6% Detroit -0.7%
Orlando +6.8% San Francisco +3.4% Phoenix +1.1% Louisville -0.9%
San Antonio +6.4% Los Angeles +3.3% Chicago +0.6% Birmingham, AL -1.9%
Raleigh +5.5% Charlotte +3.1% Baltimore +0.5% Providence -2.2%
Tampa +5.4% San Bernardino +2.6% Pittsburgh +0.5% Hartford -2.2%
Salt Lake City +5.3% Jacksonville +2.5% Sacramento +0.4% Cleveland -2.5%
Oklahoma City +5.1% Boston +2.3% Richmond +0.2% Norfolk/Virginia Beach -2.5%
Las Vegas +4.9% Nashville +2.0% Columbus, OH +0.01% Cincinnati -2.7%
San Jose +4.8% Seattle +2.0% Milwaukee -3.5%
Denver +4.7% Atlanta +1.9% Memphis -3.5%
Top 50 MSAs
(Percentage Change in the Number of Business Establishments, 2014 V. 2009)

4. 40%
43%
41%
45%
47%
46%
51%
2011 2013 2015 2017E
SMB Corporate Responsibility
(Percentage SMBs that ‘Strongly Agree’)
4
Businesses today have a
responsibility to address key social
& environmental issues
Working to make
‘sustainability’ an integral part
of our products/services
Sources: 1KPMG Currents of Change: The KPMG Survey of Corporate Responsibility Reporting, 2015, the top 100 largest companies in the U.S. CR reports include areas such
as ethics, employee development & diversity, helping the community, the environment, and sustainability in the supply chain; The Business Journals SMB Insights, Q:
“Following are a series of statements which may/may not reflect how you think about business, or life in general. Please indicate whether you agree/disagree with each one.”
E=predicted estimate/preliminary data from SMB Insights 2017
SMBs emphasizing corporate
responsibility for 2017
Today nearly all of the top 100 U.S. companies have Corporate Social Responsibility (CSR) programs.1 The SMB market which
has historically lagged in its concerns about sustainability and social responsibility is now facing these issues.

5. 2017 is the year of the Latino entrepreneur
5
Number, Employment & Revenues of
Hispanic-Owned Businesses
Other Services = professional, business & civic services, repair & maintenance services, personal & laundry services, etc. 1State of Latino Entrepreneurship, 2015 Research
Report, Stanford Latino Entrepreneurship Initiative; Sources: US Census Bureau, Survey of Business Owners (published 8/18/15); Base: All US Non-farm businesses operating in
the 50 states and District of Columbia. (NOTE: 2017 projected using 2012 vs. 2007 growth rates); Hispanic Businesses & Entrepreneurs Drive Growth in the New Economy, 2015.
$222
$351
$474
$640
1.6M
2.3M
3.3M
4.8M
1.5M
1.9M
2.3M
2.8M
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2002 2007 2012 2017 (Projected)
TotalSalesReceiptsinBillionsofDollars
MillionsofBusinesses&PaidEmployees
Revenues Number of Businesses Paid Employees
With the sales of Hispanic-owned businesses estimated to reach $640 billion, and the number of businesses projected at
nearly 5 million, 2017 is clearly the year of the Latino entrepreneur. The Hispanic-owned business growth rate (40%+) is
three times the national average “suggesting that Latinos play a substantial role in local job creation and economic
development.”1
Leading Industries Among
Latino-Owned Businesses
3%
10%
4%
9%
15%
9%
10%
7%
13%
3%
4%
7%
8%
8%
11%
14%
16%
17%
Accomodation & food services
Real estate/renting & leasing
Transportation & warehousing
Retail trade
Professional, scientific & technical
Health care & social assistance
Construction
Administrative support
Other Services (see footnote)
Latino-Owned Businesses Non Latino-Owned Businesses

6. Mobile growing, but traditional ad efforts
still fuel SMB marketing
6
Source: 1eMarketer, Digital Ad Spending to Surpass TV Next Year, March 8, 2016; The Business Journals SMB Insights, Q: “What percentage of your total weekly time taking in
business news or information is accessed via smartphone, tablet, computer or a print publication itself?” “Which of the following marketing & advertising vehicles has your company
used in the past 12 months?” “Which of the following will your company use more of in the next 1-2 years?” E=predicted estimate/preliminary data from SMB Insights 2017
SMBs’ Personal Use of Smartphones to
Access Business News/Information
57%
75%
83%
2015 2016 2017E
It is projected that mobile advertising spending in 2017 will reach $53 billion, nearly double the $31 billion spent in
20151. SMB owners are clearly end users of this movement -- 83% now use their smartphones to access business news
and information. However, when reaching their own customers, traditional channels continue to dominate. Mobile
advertising has yet to take off among SMBs.
SMB Marketing Vehicles
Current Use/Use More of Next Several Years
(Based on Preliminary 2017 Insights data)
12%
23%
22%
26%
10%
26%
27%
35%
Mobile advertising
Direct mail
Trade shows & events
Print advertising
Used Past Year Plan to Use More Next 1-2 Years

7. SMB owners’ concern about health
insurance costs is expected to increase
7
Source: 1Kaiser Family Foundation, Analysis of 2017 Premium Changes and Insurer Participation in the Affordable Care Act’s Health Insurance Marketplaces, June 28, 2016
The Business Journals SMB Insights (Base: Businesses with 5-499 Employees); Q: “What are the issues that you’re most concerned about related to running a business?”
“How does your company currently share the cost of health insurance with its employees?” E=predicted estimate/preliminary data from SMB Insights 2017
SMBs ‘Very Concerned’ About the Cost of
Health Insurance & Employee Benefits
With healthcare premiums slated to rise in 2017 by as much as 10%1, business owners’ costs will also increase. The
large majority (72%) pay for most or all of their employee healthcare costs.
How SMBs Share the Cost of Health
Insurance with Employees
26%
Company
pays all
46%
Company
pays most
22%
Shares cost
equally with
employees
7%
Employees
pay most/all
expense
72% 69% 70%
63% 60%
53%
59% 63%
2010 2011 2012 2013 2014 2015 2016 2017E
72% of SMBs pay most or all of employee health
insurance costs

8. More than half a million SMBs will shut
down in 2017 because of cyber security
breaches
8
Sources: 1Symantec Internet Security Threat Report 2016; 2National Cyber Security Alliance 2016; Bank of America SBO Report 2015; The Business
Journals SMB Insights; E = predicted estimate/preliminary data from SMB Insights 2017
It’s not just big firms like Target or Home Depot that need to worry about cyber security. Forty-three percent (43%) of all
cyberattacks target SMBs.1 Not surprisingly, our data shows they are increasingly concerned about the safety of their
company’s technology and files. Most SMBs don’t have in-house experts to deal with breach issues, and the average recovery
cost is $36,000. Sadly, 60% end up having to close their doors within six months of the breach2. In 2017, this could add up to
550,000 business failures.
Number of Businesses
with 1-999 Employees
7.6 Million
Victims of a cyber
security breach
12%
Close their doors within
6 months of the data
breach
60%
Estimated Number of
Closings
550,124
SMBs’ Concern About
‘The Safety & Security of Their Firm’s
Technology, Email & Documents’
41%
50%
30%
28%
2009 2017E
Somewhat
Concerned
Very
Concerned
71%
78%
Impact of Cyber Attacks
on Small & Mid-Sized Businesses

9. Health care, accommodations and
professional/tech services are driving the
greatest growth among SMBs
9
Percentage Change in Number of SMB Business Establishments by Industry
(2014 Vs. 2008)
Source: Census Bureau, County Business Patterns, 2014, Geography Area Series. Released April 21, 2016. Includes all business establishments with 1-499 employees.
GROWING INDUSTRIES DECLINING INDUSTRIES
% Change # of Businesses % Change # of Businesses
Educational Services +12.2% 98,462 Trans/Warehousing -1.6% 219,590
Healthcare/Social Asst +8.1 851,272 Information -2.3 137,501
Accommodations +6.7 678,630 Wholesale Trade -3.0 415,892
Utilities +5.9 17,962 Retail Trade -3.2 1,065,066
Arts +4.5 129,498 Finance & Insurance -6.2 469,455
Prof, Science, Tech Services +4.1 881,491 Manufacturing -10.3 289,684
Management of Companies +3.8 52,631 Construction -13.8 666,651
Other Services +1.3 739,724
Administrative +1.1 395,409
Real Estate +0.4 366,955

10. With Millennials making up the largest
share of the workforce, SMB owners will
need to focus on meeting their needs
10
U.S. Workforce by Generation
Source: 1Bureau of Labor Statistics; 2Monster Multi-generational survey January, 2016; 3Business Insider, Millennials Want Co-workers to be a Second Family, 2015
By 2020, Millennials will account for half of all workers.1 Most Millennials expect the workplace to be a fun, social place and feel
entitled to set their own schedules.2 Compared to older boomer-aged employees, Millennials are looking for work with a greater
purpose (45% v. 33% for Boomers)3. Salary alone is not enough!
Millennials
(1981-1997)
Boomers
(1946-1964)
Gen Xers
(1965-1980)
Gen Zers
(1998-)
Traditionalists
(1945 or earlier) 2% 2% 1%
32% 27%
22%
21%
21%
20%
43%
45%
50%
2%
5% 7%
2015 2017 2020
Millennials’ Attitudes Towards Work
63%
81%
88%
Motivated by money
Should be able to set my own
work schedule
Want a fun, social work
environment

11. CONTACT
11
Research:
Jessie Shaw, Vice President
212-500-0611
jessieshaw@bizjournals.com
About The Business Journals:
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with 43 business publications across the country reaching more than 3.6 million
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