Boston Small Business Owners Increasingly Likely to Hire and Grow Revenue in 2015
November 13 2014 - 9:00AM
Business Wire
Fall 2014 Bank of America Small Business Owner
Report Also Finds Bostonians Less Tech Savvy Than Their Peers
Forty-four percent of Boston small business owners are planning
to hire over the next 12 months, according to the fall 2014 Bank of
America Small Business Owner Report, released today by Bank of
America. This is a significant increase from the last two years,
when only 28 percent (2013) and 24 percent (2012) of Boston small
business owners planned to hire. Additionally, Boston small
business owners are more confident revenue will increase this year
as compared to last year. Fifty-six percent expect a revenue
increase in the next 12 months, compared to 47 percent in fall
2013.
The Small Business Owner Report is a semi-annual study exploring
the concerns, aspirations and perspectives of small business owners
in Boston and around the country.
“Boston entrepreneurs are increasingly optimistic about hiring
new employees and growing their business,” said Colleen Matteson,
Boston Small Business Banking manager at Bank of America. “We’re
committed to helping these small businesses at every stage of their
development, especially as they embark on new chapters.”
Boston small business owners hesitant to embrace
technologyBoston small business owners seem to be slightly less
wired than their peers across the country. Only 59 percent of
Boston small business owners give themselves an “A” or “B” grade
when it comes to tech savviness (compared to 67 percent
nationwide). Furthermore, Boston small business owners are more
likely than their national counterparts to give themselves a “C”
grade on tech skills (34 percent versus 27 percent nationwide).
Consequently, many Boston small business owners think they can
run their business without the help of technology. Almost half (49
percent) of Boston small business owners say they could
successfully run their business indefinitely without a smartphone
or tablet.
Boston pride: confidence in local economyConfidence in
the local economy has risen dramatically over the past two years.
In fall 2012, only 28 percent of Boston small business owners
believed the local economy would improve. Forty-four percent now
say they expect the local economy to improve in the next 12
months.
However, Bostonians are skeptical about the economy beyond their
city limits – only 37 percent believe the national economy will
improve (compared to 45 percent nationally), and just 27 percent
feel the global economy will improve over the next year.
Boston small business owners are also concerned about a number
of larger economic issues, especially health care costs. Eighty
percent of Boston small business owners are concerned about the
impact of healthcare costs on their business, the highest of any
city surveyed in the report. This is also an increase of 14 percent
over last year. Other economic concerns include:
- Sixty-nine percent are concerned about
the effectiveness of U.S. government leaders.
- Sixty-four percent are concerned about
the strength of the U.S. dollar.
- Fifty-seven percent are concerned about
the price of commodities.
Surprisingly, only 56 percent of Boston small business owners
are concerned about unemployment rates, compared to 80 percent
nationwide.
Bostonians generous at year-endBoston small business
owners are more likely to offer perks during the holiday season
than they were year ago. Almost half (48 percent) are planning to
close their office during the holidays, an increase of 13 percent
from last year. Additionally, 44 percent are planning to give gifts
to their employees, compared to 37 percent of local small business
owners who planned to do this last year.
Seventy-one percent of Boston small business owners expect to
hit their year-end revenue goals, but this success may not be due
to holiday sales – 83 percent say that Black Friday has minimal or
no effect on their business’s bottom line. Similarly, 74 percent of
small business owners in Boston believe that Cyber Monday is
overhyped and has no significance on their business’s revenue.
For an in-depth look at the attributes of the nation’s small
business owners, read the full fall 2014 Bank of America Small
Business Owner Report and for additional Boston-based insights,
download the Small Business Owner Report Boston infographic
here.
About the Bank of America Small Business Owner ReportBraun
Research conducted the Bank of America Small Business Owner Report
survey by phone in October 2014, on behalf of Bank of America.
Braun contacted a nationally representative sample of 1,000 small
business owners in the United States with annual revenue between
$100,000 and $4,999,999 and employing between 2 and 99 employees.
In addition, 300 small business owners were also surveyed in nine
target markets: Los Angeles, Dallas, Washington, D.C., New York,
Boston, Chicago, San Francisco, Atlanta and Miami. The margin of
error for the national sample is +/- 3.1 percent; the margin of
error for the oversampled markets (where n=300) is +/ 5.7 percent;
and the margin of error for the oversampled markets (where n=301)
is +/ 5.6 percent, with each reported at a 95 percent confidence
level.
The Braun Research survey results conducted on behalf of Bank of
America and interpretations in this release are not intended, nor
implied, to be a substitute for the professional advice received
from a qualified accountant, attorney or financial advisor. Always
seek the advice of an accountant, attorney or financial advisor
with any questions you may have regarding the decisions you
undertake as a result of reviewing the information contained
herein. Nothing in this report should be construed as either advice
or legal opinion.
Bank of AmericaBank of America is one of the world's largest
financial institutions, serving individual consumers, small
businesses, middle-market businesses and large corporations with a
full range of banking, investing, asset management and other
financial and risk management products and services. The company
provides unmatched convenience in the United States, serving
approximately 48 million consumer and small business relationships
with approximately 4,900 retail banking offices and approximately
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users and more than 16 million mobile users. Bank of America is
among the world's leading wealth management companies and is a
global leader in corporate and investment banking and trading
across a broad range of asset classes, serving corporations,
governments, institutions and individuals around the world. Bank of
America offers industry-leading support to approximately 3 million
small business owners through a suite of innovative, easy-to-use
online products and services. The company serves clients through
operations in more than 40 countries. Bank of America Corporation
stock (NYSE: BAC) is listed on the New York Stock Exchange.
Visit the Bank of America newsroom for more Bank of America
news.
www.bankofamerica.com
Reporters May Contact:T.J. Crawford, Bank of America,
1-646-855-3301tj.crawford@bankofamerica.com
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