BANK OF AMERICA
Bank of America Spring 2013 Small Business Owner Report Examines Health of Small Business Owners, Plans for Unexpected Disruptions and Economic Outlook
Bank of America today released the spring 2013 Small Business Owner Report, a semi-annual study exploring the concerns, aspirations and perspectives of small business owners throughout the country. The survey, which includes an oversampling of small business owners in the Greater Washington market, found that 62 percent of Greater Washington small business owners feel their personal health has improved as a result of running their own small business.
More than four in 10 (42 percent) Greater Washington small business owners eat healthier and 39 percent say they exercise more as a result of owning a small business. Fifty-three percent believe they manage the stress associated with running a small business well, while only 26 percent feel they do not.
Small business owners are also looking for innovative ways to keep their employees happy and healthy. Ninety-one percent of Greater Washington small business owners take steps to contribute to the happiness of their employees, including offering flexible hours or work from home options (47 percent), health and wellness benefits (33 percent) and additional amenities, such as healthy snacks, free lunches and massages (28 percent).
“We're encouraged by the insights found in our most recent report and will continue to provide small business owners with the solutions they need for their business,” said Zachary Hauser, Small Business Banker manager at Bank of America. “Our small business experts are committed to making the financial lives of our clients and their employees better.”
Optimism for business and the economy
Greater Washington small business owners continue to be optimistic about the financial wellness of their business and the economy.
Almost six in 10 (56 percent) of Greater Washington small business owners anticipate their revenue to increase over the next year, with respondents citing marketing their business more to acquire new customers (48 percent), maximizing day-to-day cash flow (18 percent) and providing better customer service (14 percent) as tactics to reach these revenue goals. They are also willing to harness new technology, such as mobile devices (54 percent) and web meetings (55 percent), to connect with customers and suppliers.
In addition, the survey found the majority of Greater Washington small business owners are planning on sustaining or growing their business over the next 12 months. Specifically, more than a quarter (27 percent) plan on hiring more employees, while 55 percent expect their staffing needs will remain consistent.
In the next 12 months, 36 percent of respondents expect their local economy to improve and 44 percent expect the national economy to improve. Greater Washington small business owners cited consumer confidence (72 percent), recovery of consumer spending (62 percent) and the strength of the U.S. dollar (61 percent) as the key factors for their outlook.
Preparedness for the unexpected
The spring 2013 Small Business Owner Report also explored small business owners’ preparedness for unexpected events, such as natural disasters, staff reductions, and medical emergencies. Greater Washington owners feel their business could last on average four months if a significant disruption were to occur before they would need outside financial assistance. While only about one in four (26 percent) Greater Washington small business owners have been affected by a significant disruption, 48 percent have a plan in place to handle a possible incident.
Greater Washington small business owners seek advice
Small business owners in Greater Washington are well-capitalized, with 74 percent saying they have enough capital to effectively run their business. More than one in five (21 percent) say they intend to apply for a loan in 2013, higher than the national response (19 percent).
When it comes to financial matters, only 27 percent consider themselves very financially savvy. Greater Washington’s small business owners look to an accountant or bookkeeper (81 percent), other small business owners (62 percent) or family and friends (54 percent) for financial advice.
“We’ve found that small business owners seek the same thing regardless of location: expertise to help with their cash flow needs and grow their business,” said Hauser. “Whether they’re looking for help managing their payroll, capital to grow their business or mobile payment systems to help with customer transactions, we are committed to helping small business owners in Greater Washington continue to expand their business.”
Bank of America has continued to lend actively to small businesses across the U.S. and Greater Washington. Through March, Bank of America has extended $15.4 million in credit across Washington, D.C. to small businesses – this includes $5.5 million in new originations. This has helped enable Bank of America to exceed its national small business lending pledge to the White House and the U.S. Small Business Administration.
For a complete, in-depth look at the insights of the nation’s small business owners, please read the entire spring 2013 Small Business Owner Report, and for additional Greater Washington-based insights, download the Small Business Owner Report Greater Washington infographic here.
About the Bank of America Small Business Owner Report
Braun Research conducted the Bank of America Small Business Owner Report survey by phone between March 14 and March 31, 2013, 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.
© 2013 Bank of America Corporation. All rights reserved.
Bank of America
Bank 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. We serve approximately 52 million consumer and small business relationships with approximately 5,400 retail banking offices and approximately 16,300 ATMs and award-winning online banking with 30 million active 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 a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
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