Despite Challenges, Local Entrepreneurs Are
Significantly More Optimistic in Their Business Growth Than They
Were One Year Ago
Seven years after the Great Recession, nearly two-thirds of
Dallas/Fort Worth small business owners (63 percent) report their
businesses are still recovering, according to spring 2015 Bank of
America Small Business Owner Report, a semi-annual study exploring
the concerns, aspirations and perspectives of small business owners
in Dallas/Fort Worth and around the country. Though many feel they
have not completely recovered, they are far more optimistic about
the economy, business growth, revenue expectations and hiring than
a year ago.
Small business owners from the Dallas/Fort Worth area had the
highest year-over-year increase in optimism about the national
economy than any other market surveyed. In the spring 2014 Bank of
America Small Business Owner Report, 33 percent were confident the
national economy would improve over the next year, compared to 55
percent in 2015. Dallas/Fort Worth entrepreneurs also feel positive
about the future of their businesses. Three-quarters (76 percent)
plan to grow their business over the next five years, which is
higher than any other market surveyed and up 15 percent from last
spring. In addition, nearly two-thirds of local entrepreneurs (62
percent) expect an increase in revenue over the next 12 months,
compared with 56 percent last year.
“The fact that Dallas/Fort Worth small business owners have
expressed such high optimism and expectations for growth, despite a
lengthy recovery process from the recession, shows a lot about
their strength and resilience,” said Jeffrey Coomer, small business
banker manager at Bank of America. “They are selfless and focused
individuals who have made tough decisions and sacrifices in the
best interest of their customers and employees.”
When looking at staffing, the majority of Dallas/Fort Worth
entrepreneurs (57 percent) say they expect to hire more employees
this year, which is a 17 percent increase from one year ago.
Despite these hiring projections, most (51 percent) say it’s
difficult to find qualified staff. Dallas/Fort Worth entrepreneurs
say the top challenges in finding qualified staff are attributed to
a skills gap (63 percent) and high salary demands (51 percent).
Dallas/Fort Worth small business owners demonstrate
self-sacrifice; prioritize employees and customersDallas/Fort
Worth small business owners are prioritizing the needs of customers
and employees before their own. The most recent survey reveals that
64 percent of local entrepreneurs would rather delay or reduce
their own compensation than take other courses of action to make
ends meet; this includes delaying or reducing compensation for
their staff (10 percent) or scaling back on the services they offer
customers (9 percent). More than half (52 percent) report that they
have never given themselves a raise, or haven’t done so in more
than two years.
Almost all (97 percent) of Dallas/Fort Worth small business
owners say they have employee appreciation programs, including:
- Dinners and outings (51 percent).
- Salary bonuses (46 percent).
- Health care benefits (33 percent).
They also provide a number of work-life balance benefits for
employees, including:
- Flexible hours (53 percent).
- Office closure on major holidays (47
percent).
- Extra time off (42 percent).
The majority of Dallas/Fort Worth small business owners (56
percent) cite that establishing relationships with customers and
clients is the primary driver of repeat business, and they find
many ways to show their appreciation, including:
- Referral programs (34 percent).
- Social media promotions (34
percent).
- Loyalty programs, such as stamp cards
or a loyalty app (33 percent).
Additionally, 66 percent say a primary way in which they have
adapted to customer demands is by becoming more technologically
savvy (62 percent nationally).
Dallas/Fort Worth entrepreneurs appreciate support from their
community, mentors and policymakersDallas/Fort Worth small
business owners overwhelmingly support other small businesses in
the community by shopping small. Sixty-four percent of Dallas/Fort
Worth small business owners gave themselves an “A” or “B” grade for
shopping at other local small businesses. They also rate their
local community high in shopping small, as 59 percent handed out an
“A” or “B” grade when assessing how well Dallas/Fort Worth
residents frequent small businesses.
Dallas/Fort Worth small business owners feel a strong sense of
camaraderie in their small business community. In fact, 32 percent
say other small business owners or business mentors help the most
when it comes to running their business; this is 12 percent higher
than the national average and any other market surveyed.
In addition to feeling supported by their local community, 45
percent of Dallas/Fort Worth entrepreneurs believe policymakers
appreciate small business owners, which is higher than the national
average (30 percent) and any other market surveyed. When asked
about the impact of specific government policies, Dallas/Fort Worth
small business owners say the greatest potential for a positive
impact on their business could come from expanded tax breaks for
automatically enrolling employees into retirement savings accounts
(36 percent) and incentives to keep jobs on U.S. soil (31 percent).
Conversely, the policies that would have the most negative impact
on their business would be required health care plans for employees
(37 percent) and an increased minimum wage (29 percent).
Health care costs and the effectiveness of government leaders
are top concerns for Dallas/Fort Worth small business
ownersAlthough overall economic confidence is running high,
Dallas/Fort Worth entrepreneurs still have concerns over specific
issues. Among the categories surveyed, health care costs (65
percent) and the effectiveness of U.S. government leaders (64
percent) are the top concerns among Dallas/Fort Worth small
business owners. Commodity prices and the strength of the U.S.
dollar are also top concerns, with 60 percent citing their
unease.
For an in-depth look at the attributes of the nation’s small
business owners, read the full spring 2015 Bank of America Small
Business Owner Report and for additional Dallas/Fort Worth-based
insights, download the Small Business Owner Report Dallas/Fort
Worth infographic here.
About the Bank of America Small Business Owner ReportBraun
Research conducted the Bank of America Small Business Owner Report
survey by phone, from March 4, 2015, through March 27, 2015, 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 each of 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 is +/ 5.7 percent, 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 and
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 4,800 retail financial centers and approximately
15,900 ATMs and award-winning online banking with 31 million active
users and approximately 17 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 all 50 states, the District of Columbia, the U.S.
Virgin Islands, Puerto Rico and more than 35 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:Britney Sheehan, Bank of America,
1.425.467.9744britney.w.sheehan@bankofamerica.com
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