Los Angeles Small Business Owner Confidence and Optimism Is Significantly Higher Than Last Year
November 13 2014 - 9:00AM
Business Wire
Fall 2014 Bank of America Small Business Owner
Report Also Finds Los Angeles Businesses Quickly Adopting New
Technology
Los Angeles small business owners’ confidence in the local
economy has increased 16 percent from a year ago, with 62 percent
confident that it will improve in the next 12 months (compared to
46 percent a year ago) according to the fall 2014 Small Business
Owner Report, released today by Bank of America.
In addition, Los Angeles small business owners are more
optimistic about their revenue, growth prospects and hiring plans.
Sixty-nine percent of Los Angeles small business owners expect
increased revenues in the year ahead, up from 57 percent a year
ago. In addition, 73 percent plan to expand their business in the
next five years (compared to 67 percent nationally). Notably, 58
percent of Los Angeles small business owners plan to hire more
employees. This is 30 percent more than in 2013.
The Small Business Owner Report is a semi-annual study exploring
the concerns, aspirations and perspectives of small business owners
in Los Angeles and around the country.
“Not only are Los Angeles small business owners positive about
the year ahead, they are also early adopters of technology,” said
Troy Bosch, Los Angeles Small Business Banking manager at Bank of
America. “Their ability to adapt to new technologies will help them
continue to grow in the coming months.”
Los Angeles – A bourgeoning tech hubSeventy-five percent
of Los Angeles respondents give themselves an “A” or “B” when it
comes to tech savviness. These grades are on par with
technology-hub San Francisco (where 75 percent of small business
owners also gave themselves an “A” or “B” in tech savviness), but
higher than the national average of 67 percent.
In spite of positive self-evaluations from Bay Area
entrepreneurs, Los Angeles small business owners are inching ahead
of their tech-savvy neighbors when it comes to incorporating
digital methods into their day-to-day business practices. Forty-one
percent of Los Angeles small business owners have incorporated
social media into their business (compared to 32 percent in San
Francisco), 45 percent protect their email and shared files from
hackers through digital security software (versus 35 percent of Bay
Area counterparts), and 38 percent sell product or services online
(versus 27 percent in San Francisco).
Positive outlook for year-endSeventy-eight percent of Los
Angeles small business owners are confident they will hit year-end
revenue goals, which is on par with their national counterparts. To
celebrate, 56 percent plan to give their employees salary bonuses,
an uptick from 45 percent a year ago. Additionally, 47 percent plan
to close their offices during the holiday season, compared to 33
percent a year ago.
Angelenos are largely unaffected by the year-end shopping
season, with 81 percent of respondents stating that Black Friday
has a minimal or no impact on their business’ bottom line. Another
63 percent believe that Cyber Monday is overhyped and also has no
significance to their annual revenue.
Economic concerns still remainDespite confidence in their
businesses and the local economy, Los Angeles small business owners
still have worries about specific economic issues, with 79 percent
concerned about the effectiveness of U.S. government leaders, 65
percent expressing concern about healthcare costs and 69 percent
worrying about the strength of the U.S. dollar.
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 Los Angeles-based
insights, download the Small Business Owner Report Los Angeles
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.
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businesses, middle-market businesses and large corporations with a
full range of banking, investing, asset management and other
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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
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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
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Reporters May Contact:Colleen Haggerty, Bank of America,
1.949.464.2338colleen.haggerty@bankofamerica.com
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