In Spite of Lingering Concerns, Local
Entrepreneurs Are Optimistic About Revenue and Hiring
More small business owners in metro New York (68 percent) are
still recovering from the recession than any other market,
according to the spring 2015 Bank of America Small Business Owner
Report, a semi-annual study exploring the concerns, aspirations and
perspectives of small business owners in metro New York and around
the country. This is more than the national average (64 percent)
and all other markets, including Miami (61 percent), Los Angeles
(60 percent) and Chicago (59 percent).
The report reveals that metro New York entrepreneurs are working
hard to combat the impact of the recession. Almost nine out of 10
metro local small business owners (86 percent) work more than 40
hours a week. They also make a lot of financial sacrifices for
their businesses:
- Nearly three-fourths (71 percent) would
delay or reduce their own compensation if forced to make ends meet
in their business (67 percent nationally).
- Forty-three percent carried business
costs on a personal credit card (35 percent nationally).
- Thirty-seven percent have delayed or
forgone compensation for up to two weeks (32 percent
nationally).
“Small business owners in the metro New York area are resilient
individuals who have made a lot of personal sacrifices for the sake
of their businesses, customers and employees,” said Michael
Angelone, metro New York small business banker manager at Bank of
America. “Our small business bankers are committed to working with
these hardworking entrepreneurs to support them and to help them
succeed.”
In spite of lingering concerns, metro New York small business
owners are still optimistic about their business in the years
ahead; nearly two-thirds (64 percent) plan to grow their business
in the next five years. In addition, 59 percent anticipate revenue
growth in the coming year.
Nearly half of metro New York entrepreneurs (44 percent) say
they expect to hire more employees this year, but many (48 percent)
say it’s difficult to find qualified staff. Metro New York
entrepreneurs say the top challenges in finding qualified staff are
attributed to a skills gap (61 percent) and high salary demands (48
percent).
Metro New York small business owners show appreciation for
customers, embrace technology
The majority of metro New York small business owners (60
percent) say that establishing relationships with customers and
clients is the primary driver of repeat business, and they find
many ways to show their appreciation, including:
- Monetary rewards, such as discounts or
free upgrades (33 percent).
- Social media promotions (28
percent).
- Personalized gifts (28 percent).
- Free products or services for their
first visit (28 percent).
The report also found that 70 percent of metro New York small
business owners have become more technologically advanced to meet
customer demands. Forty percent say that social media and online
review sites have provided informative feedback that has prompted a
change in their businesses, and 36 percent experienced an uptick in
customers.
Local small business owners remain concerned about health
care costs, but less so about other issues
The spring 2015 Small Business Owner Report found that metro New
York small business owners are increasingly concerned about the
impact of health care costs compared to findings in the fall 2014
Small Business Owner Report (73 percent versus 65 percent six
months ago). However, they are significantly less worried about
many other issues than they were six months ago, including the
effectiveness of U.S. government leaders (63 percent versus 81
percent), the strength of the U.S. dollar (50 percent versus 69
percent), interest rates (50 percent versus 62 percent) and the
global stock market (42 percent versus 52 percent).
When it comes to government policies, metro New York 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
(33 percent) and incentives to keep jobs on U.S. soil (29 percent).
Conversely, the policies that would have the most negative impact
on their business would be required health care plans for employees
(36 percent) and mandated sick leave for employees (32
percent).
Local entrepreneurs feel supported by their local community,
but less so by policymakers
Metro New York small business owners overwhelmingly support
other small businesses in the community by shopping small.
Sixty-nine percent of metro New York 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 63 percent handed out an “A” or “B” grade when assessing
how well metro New York residents frequent small businesses.
While many small business owners feel supported by their local
community, only 28 percent of metro New York entrepreneurs believe
that policymakers appreciate small business owners.
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 metro New York-based
insights, download the Small Business Owner Report metro New York
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:T.J. Crawford, Bank of America,
1.646.855.3301tj.crawford@bankofamerica.com
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