Despite Concerns, Local Entrepreneurs Are More
Optimistic in Their Business Growth Than They Were One Year Ago
Seven years after the Great Recession, nearly two-thirds of
Atlanta small business owners (65 percent) report their businesses
are still recovering, 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
the Atlanta area and around the country.
Though many small business owners feel they have not completely
recovered, they are far more optimistic about their business
growth, revenue expectations and hiring plans than they were a year
ago when comparing to previous survey results. Sixty-five percent
of local entrepreneurs predict their revenue will increase over the
next 12 months (compared to 58 percent one year ago), and 72
percent expect their business to grow over the next five years – an
increase of 12 percent year-over-year. Additionally, 51 percent
plan to hire more employees this year, compared to 41 percent based
on survey results reported in spring 2014.
“We are encouraged to see the strong optimism among Atlanta
entrepreneurs, and excited about the positive momentum in the local
small business community,” said Dean Bird, Atlanta small business
banker manager at Bank of America. “Small business owners are an
important contributor to our local economy as well as our
community, and we are proud to support them as they grow and evolve
their businesses.”
Atlanta small business owners demonstrate self-sacrifice;
prioritize employees and customers
Similar to their counterparts in other parts of the country,
Atlanta small business owners are prioritizing the needs of
customers and employees before their own. The 2015 survey reveals
that 71 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 (6 percent) or scaling back on the services they offer
customers (11 percent). In addition, more than half of Atlanta
small business owners (55 percent) report that they have never
given themselves a raise, or haven’t done so in more than two
years.
Atlanta small business owners are also more likely to
demonstrate self-sacrifice than their counterparts in other parts
of the country. Forty-three percent of local entrepreneurs have
carried business costs on a personal credit card for the betterment
of their businesses, compared to 35 percent nationally.
Furthermore, 38 percent of Atlanta entrepreneurs have delayed or
foregone compensation for up to two weeks (32 percent nationally),
35 percent have taken out a personal loan for business purposes (29
percent nationally) and 28 percent have put up personal property as
collateral (22 percent nationally).
Almost all (97 percent) Atlanta small business owners have
employee appreciation programs, including:
- Dinners and outings (50 percent).
- Office recognition (50 percent).
- Spot bonuses (39 percent).
They also provide work-life balance benefits for employees,
including:
- Flexible hours (62 percent).
- Office closure on major holidays (54
percent).
- Paid vacation time (43 percent).
The majority of Atlanta small business owners (58 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:
- Monetary rewards, such as discounts or
free upgrades (35 percent).
- Referral programs (35 percent
nationally).
- Free products or services on their
first visit (34 percent).
Additionally, nearly three-fourths of Atlanta small business
owners (73 percent) say a primary way in which they have adapted to
customer demands is by becoming more technologically savvy, which
is 11 percent higher than the national average and more than any
other market surveyed. Furthermore, 41 percent have made a change
in their business after receiving informative feedback via social
media or reviews sites.
Local Atlanta entrepreneurs appreciate the support of their
community
Atlanta small business owners overwhelmingly support other small
businesses in the community by shopping small. Sixty-seven percent
of Atlanta 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 Atlanta residents
frequent small businesses.
While small business owners feel supported by their local
community, only one in three Atlanta entrepreneurs (33 percent)
believe that policymakers appreciate them. When asked about the
impact of specific government policies, Atlanta 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 (41 percent) and
mandated sick leave for employees (30 percent).
Local small business owners express confidence in the
economy, concern over health care costs
Based on survey results, Atlanta small business owners are more
confident in the economy compared to a year ago. More than half (55
percent) expect the local economy to improve over the next 12
months, compared to 43 percent one year ago. Confidence in the
national economy is up by 14 percent year-over-year (51 percent
versus 37 percent).
Despite increased optimism, local businesses continue to express
concern about specific issues. Nearly three out of four Atlanta
entrepreneurs (74 percent) are concerned about health care costs,
while 71 percent are concerned about the effectiveness of U.S.
government leaders.
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 Atlanta-based insights,
download the Small Business Owner Report Atlanta 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:Matthew Daily, Bank of America,
1.404.607.2844matthew.daily@bankofamerica.com
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