Fall 2014 Bank of America Small Business Owner
Report Also Finds Chicago Entrepreneurs Use Technology More Than
National Counterparts
Sixty-six percent of Chicago’s small business owners plan to
grow their business over the next five years up from 59 percent
last spring, according to the fall 2014 Bank of America Small
Business Owner Report, released today by Bank of America.
The Small Business Owner Report is a semi-annual study exploring
the concerns, aspirations and perspectives of small business owners
in Chicago and around the country.
With 48 percent planning to hire more employees and 61 percent
predicting revenue increases, Chicago small business owners are
feeling more confident in achieving growth than they did in fall
2013, when 30 percent planned to hire more employees and 54 percent
expected revenue growth. Additionally, within the last 12 months,
confidence in the local and national economies has grown by 6
percent and 14 percent, respectively.
“Small businesses are a cornerstone of the local economy, and
will continue to be an important source of employment in the area,”
said Jay Miller, regional sales executive for Bank of America. “As
our small business owners continue to gain confidence in the
Chicago economy, Bank of America will be there to help small
business owners grow.”
Even with increased confidence in the economy as a whole,
Chicago small business owners do have reservations about specific
economic issues. For example, 73 percent believe that health care
costs could affect the future of their business (up from 67 percent
six months ago), 72 percent are concerned about the strength of the
U.S. dollar (up from 60 percent six months ago), and 70 percent
worry about the effectiveness of U.S. government leaders (up from
65 percent from six months ago).
Chicago small business owners - a tech savvy crowdChicago
small business owners see technological advances as a way to
improve business operations. When asked to grade themselves on tech
savviness, 64 percent of Chicago small business owners give
themselves an “A” or “B.”
Chicagoland entrepreneurs are more connected than their national
counterparts, with almost half (46 percent) saying that they could
not run their business successfully for longer than one day without
a smartphone or a tablet, compared to 34 percent nationwide. An
overwhelming majority (78 percent) also identified technology as a
means to save time and improve efficiency, including the use of
applications for inventory management and money management.
“New technologies are changing the way small businesses across
various industries operate and interact with customers,” said
Jennifer Mariani, Small Business Banking manager. “Chicago’s small
business owners are eager to leverage innovation in order to remain
competitive in a difficult economy by becoming more efficient and
nimble.”
Many Chicago small business owners incorporate some type of
digital technology into their business, including technology for
security software (48 percent, versus 44 percent nationally),
organizing office tasks (45 percent, versus 38 percent nationally),
selling products or services online (43 percent, versus 38 percent
nationally), and replacing cash registers with mobile tablets or
cloud-based POS solutions (26 percent, versus 18 percent
nationally).
Year-end cheer expected among Chicago small business
ownersSeventy-one percent of Chicago small business owners
expect to hit their year-end revenue goal. However, Black Friday
and Cyber Monday are not expected to impact revenue; 72 percent and
86 percent say Black Friday and Cyber Monday, respectively, will
have little impact on their business’ bottom line.
Chicago small business owners are also planning to reward their
employees with end-of-year perks this holiday season:
- Fifty-one percent plan to award salary
bonuses to employees.
- Forty percent will host a holiday party
for their staff.
- Forty-five percent plan to give out
gifts to employees.
For an in-depth look at the attributes of the nation’s small
business owners, read the full fall 2014 Bank of America Small
Business Owner Report and for additional Chicago-based insights,
download the Small Business Owner Report Chicago infographic
here.
About the Bank of America Small Business Owner ReportBraun
Research conducted the Bank of America Small Business Owner Report
survey by phone in October 2014 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 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 and the margin of
error for the oversampled markets is +/ 5.7 percent, with both
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
businesses, 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 4,900 retail banking offices and approximately
15,700 ATMs and award-winning online banking with 31 million active
users and more than 16 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 more than 40 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:Diane Wagner, Bank of America,
1.312.992.2370diane.wagner@bankofamerica.com
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