Local Small Business Owners Are More Confident
in Their Businesses and the Overall Economy Than a Year Ago
Small business owners in metro New York are bullish about the
year ahead, according to the fall 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.
Seventy percent of metro New York small business owners expect
their revenue to increase in the next 12 months, a 10 percentage
point increase from a year ago. In addition, 61 percent plan to
hire more employees, a 13 percentage point increase from last year.
This expected growth calls for more capital, which may explain why
one-third (33 percent) of metro New York entrepreneurs plan to
apply for a loan in 2016, 8 percentage points higher than a year
ago.
“New York small business owners continue to be extremely
positive about their prospects for growth,” said Michael Angelone,
New York small business banker manager at Bank of America. “In
addition to exhibiting increased levels of optimism around revenue,
hiring and the economy, small business owners are also responding
to the needs of their employees and customers by embracing
technological advancements and workplace flexibility.”
Economic confidence is on the riseMetro New York small
business owners’ expectations for the economy mirror their attitude
on business growth: 57 percent are confident the local economy will
improve in the next year, compared to 51 percent in fall 2014; 52
percent are confident the national economy will improve, compared
to 47 percent in fall 2014; and 41 percent believe the global
economy will improve, representing a slight uptick from a year
ago.
When asked about their top concerns, metro New York small
business owners said they worry about economic factors impacting
their businesses but are less concerned than they were a year ago.
Concerns include:
- Effectiveness of U.S. government
leaders (68 percent, versus 81 percent a year ago).
- Strength of the U.S. dollar (59
percent, versus 69 percent).
- Interest rates (57 percent, versus 62
percent).
- Consumer spending (55 percent, versus
62 percent).
Metro New York small business owners embrace technology and
workplace 2.0Metro New York small businesses have shifted in
recent years to create workplace environments that are more
collaborative, tech-friendly and flexible. Eighty-six percent are
willing to adopt new technologies, and 88 percent think changing
technology has helped their business – specifically, 84 percent
report that technology has helped better serve their customers.
Metro New York entrepreneurs have also shifted to a more
flexible work environment in recent years, with more than half (52
percent) offering telecommuting as an option to employees (versus
47 percent nationally), a significant increase from the 40 percent
who offered it five years ago.
This flexibility is paying off, as 57 percent of metro New York
small business owners think their employees have better attitudes
when they have the option to telecommute, and half (50 percent)
think their workforce has become more productive due to
telecommuting. Over the past five years, 37 percent of metro New
York entrepreneurs think their workplace has become more
collaborative and focused on teamwork, and more welcoming to
change.
Nontraditional perks are also emerging at metro New York small
businesses, including areas to relax or unwind, such as nap pods or
game rooms (17 percent), office happy hours (17 percent) or
pet-friendly work environments (13 percent).
Small business owners are concerned and prepared for a
cybersecurity breachWith increased reliance on technology comes
an increase in the risk of cyber threats. In fact, 11 percent of
New York area small business owners have already fallen victim to a
cybersecurity breach. In order to better protect themselves and
their customers from the threat of a cyber-attack, 70 percent are
upgrading their technology at least once a year. As a result, 64
percent of local business owners feel prepared for a cyber-attack –
more than any other market surveyed.
Small business owners look forward to a happy new
yearMany metro New York small business owners intend to offer
holiday-related perks to their employees during this year’s holiday
season. Top holiday perks include salary bonuses (52 percent),
holiday parties (46 percent), flexible hours or vacation time (41
percent), or closing the office (43 percent).
And while 53 percent state that Black Friday has no impact on
their bottom line, the number of metro New York small business
owners who say that it has had a significant impact has increased
over the past year, from 19 percent to 24 percent – indicating even
stronger pressure in the fourth quarter for small businesses to
meet their numbers. The same can be said about Cyber Monday, with
its relevance to making year-end targets increasing from 13 percent
to 16 percent year over year.
For an in-depth look at the attributes of the nation’s small
business owners, read the full fall 2015 Bank of America Small
Business Owner Report, and for additional insights from small
business owners in metro New York and across the country, download
the Small Business Owner Report local insights infographic
here.
About the Bank of America Small Business Owner ReportBraun
Research, Inc. conducted the Bank of America Small Business Owner
Report survey by phone from August 21 through September 22, 2015,
on behalf of Bank of America. Braun contacted a nationally
representative sample of 1,001 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 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 and for
the exclusive use 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 leading
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
47 million consumer and small business relationships with
approximately 4,700 retail financial centers, approximately 16,100
ATMs, and award-winning online banking with 32 million active users
and more than 18 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
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151117006179/en/
Reporters May Contact:Tara Burke, Bank of America,
1.203.292.6590tara.a.burke@bankofamerica.com
Bank of America (NYSE:BAC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bank of America (NYSE:BAC)
Historical Stock Chart
From Apr 2023 to Apr 2024