Chicagoland Small Business Owners Feeling
Optimistic About the Year Ahead, Planning for a Robust 2016
Small business owners in the Chicago area are feeling
increasingly optimistic, 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
the Chicago area and around the country.
The report found that 67 percent of Chicago small business
owners expect revenue to increase over the next 12 months, compared
to 61 percent last year. In addition, 60 percent plan to hire in
the coming year, a 12 percentage point increase from just one year
ago.
“Small businesses continue to drive economic growth in our great
city,” said Jim Holmes, Chicago small business banker manager for
Bank of America. “It’s encouraging to see confidence among
Chicago-area entrepreneurs so high, especially when it comes to
hiring and the strength of the economy. We’re looking forward to an
exciting year ahead.”
Not surprisingly, this expected growth demands more capital.
Twenty-eight percent of Chicago small business owners plan to apply
for a loan in 2016, compared to just 18 percent a year ago.
Economic confidence is on the rise, despite lingering
concernsIn addition to confidence in their businesses, Chicago
entrepreneurs have increased assurance in the economy: Half (50
percent) predict the local and national economies will improve over
the next year (compared to 42 and 48 percent a year ago,
respectively), and 39 percent are optimistic about global economic
improvement (versus 32 percent a year ago).
When asked about their top concerns, Chicago small business
owners believe the following factors could potentially impact their
businesses over the next 12 months:
- The possibility of future interest rate
hikes (38 percent).
- The upcoming U.S. presidential election
(37 percent).
- Financial crises in countries abroad
[i.e., China and Greece] (33 percent).
- The possibility of a rising minimum
wage (31 percent).
Chicago entrepreneurs bolstering business with
technologyChicagoland entrepreneurs are not afraid of change,
especially when it comes to new technology. Most (91 percent)
Chicago small business owners think technology has helped their
business, and 83 percent are willing to adopt new technologies into
their businesses.
In recent years, small business owners have adopted new
technology to do the following:
- Accept payments (55 percent).
- Connect with employees (52
percent).
- Optimize websites (45 percent).
- Track inventory (39 percent).
- Create apps for customers (24
percent).
When it comes to cybersecurity concerns, 11 percent of Chicago
small business owners have been a victim of a cybersecurity breach.
In order to better protect themselves and their customers, more
than two-thirds (68 percent) are upgrading their technology at
least once a year. As a result, 59 percent of local business owners
feel prepared for a cybersecurity breach.
Chicago small business owners embrace workplace
2.0Chicago workplace cultures have become more technology and
teamwork focused, with 44 percent saying their workplace has become
more tech savvy and 39 percent saying it has become more
collaborative. However, Chicago small business owners are some of
the least likely to offer telecommuting to employees (41 percent,
versus 47 percent nationally).
Telecommuting aside, Chicago small business owners do offer a
variety of other perks and benefits to their employees including
flexible hours (56 percent) or salary bonuses (50 percent). They
also provide many nontraditional perks, including areas to relax or
unwind, such as nap pods or game rooms (19 percent), office happy
hours (17 percent) or pet-friendly work environments (11
percent).
Chicagoans feeling the holiday spiritChicago small
business owners take care of their people around the holidays. Out
of the nine markets we survey, they are the most likely to close
the office during the holiday season (50 percent, versus 44 percent
nationally), and are more likely to hold holiday parties than most
of their national counterparts (48 percent, versus 45 percent
nationally). Additionally, 45 percent of local business owners
offer flexible hours or vacation time around the holidays to
employees – 12 percent more than their national counterparts.
When it comes to holiday shopping milestones, Black Friday and
Cyber Monday are not significant revenue drivers for Chicago small
business owners. More than half (57 percent) feel that Black Friday
has no impact on their business’ bottom line and 62 percent feel
similarly about Cyber Monday, saying that it is overhyped and has
no impact on their bottom line. These numbers are nearly identical
to the 2014 holiday season.
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 Chicago 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.
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Reporters May Contact:Diane Wagner, Bank of America,
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