BANK OF AMERICA
Women Small Business Owners Feel Particularly Confident and Have Higher Revenue Expectations Than Men
Small business owners in metro New York are more optimistic about growth prospects than their counterparts in other cities across America, with 79 percent planning to grow their business in the next five years, according to the spring 2014 Small Business Owner Report, released today by Bank of America.
The report, a semi-annual study exploring the concerns, aspirations and perspectives of small business owners in metro New York and around the country, also found that 69 percent of local respondents expect their revenues to increase in the next 12 months, and nearly half (49 percent) plan to hire more employees in the next year. Metro New Yorkers are looking to expand by targeting new industries and prospects (54 percent) and opening new locations (31 percent).
“We’re seeing incredible optimism and confidence among metro New York small business owners, who feel they’re in a great place to expand their reach to new customers,” said Tim McDonald, metro New York Small Business Banking manager at Bank of America. “Last year, we increased new lending to small businesses by 50 percent from the year before, and our small business bankers will continue to help provide counsel and assist area entrepreneurs in growing their businesses and meeting their goals.”
Women business owners in metro New York are particularly confident, with 79 percent expecting their revenues to increase (compared to 64 percent of men) and more than four in five (83 percent) looking to grow their business, compared to 77 percent of men.
Metro New Yorkers struggle with work-life balance
The report also looked at the family dynamics of metro New York’s small business owners, finding the majority (77 percent) have made significant sacrifices in their personal lives for their businesses, with the most common sacrifices being time for themselves (71 percent), vacation/leisure time (47 percent) and spending time with their children (41 percent). Nearly half (46 percent) say their biggest regret as a small business owner is not spending enough time with their loved ones, while one-fifth (21 percent) think their greatest accomplishment is having enough money to support their family.
When considering the demands of owning a small business, women are more likely than men to feel they should be earning more money (42 percent versus 32 percent), while men are more likely than women to feel they should be spending more time with their family (64 percent versus 57 percent of women) and on household responsibilities (37 percent of men felt they needed to do more, as opposed to 31 percent of women).
Women also believe they are more influenced by gender bias than men, with more than one in three (39 percent) citing gender stereotypes as a major reason they feel they should be spending more time on different things (compared to 22 percent of men).
Small business owners in metro New York plan for early retirement and already have succession plans in place
The report also analyzed the retirement and succession plans of small business owners, finding that metro New Yorkers are more likely to retire before age 65 than their counterparts in other cities (35 percent compared to 18 percent nationwide). However, 44 percent plan to retire after age 65 or when they are no longer physically able to work. The majority (65 percent) say this is because they enjoy running their business and do not want to stop working.
Metro New Yorkers are also most likely to have a succession plan in place for when they do retire, with more than half (53 percent) already knowing the fate of their business. Of those who have succession plans, 52 percent intend to transfer or sell their business to a family member, and 13 percent plan to dissolve the business. Of those who do not have a succession plan, more than one in four (26 percent) say it is because they are not ready to give up control of their business.
Confidence in global and local economy rises
Small business owners in metro New York are more confident in the global economy than they have been in the past two years. Nearly half (46 percent) are confident that the global economy will improve over the next 12 months, up 15 percent from the fall 2013 Small Business Owner Report. Even more (52 percent) are confident that the local economy will improve (up five percent from last fall).
Lending activity to small businesses strong
Bank of America has a nationwide network of banking centers and professionals that are committed to its more than 3 million small business clients and their local communities. In 2013, Bank of America extended $814.8 million in new loans to small businesses in New York state – a 50 percent increase over 2012. 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 an in-depth look at the attributes of the nation’s small business owners, read the full spring 2014 Bank of America Small Business Owner Report, and for additional metro New York-based insights, download the Small Business Owner Report metro New York 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 4 and March 31, 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; the margin of error for the oversampled markets (where n=300) is +/ 5.7 percent; and the margin of error for the oversampled markets (where n=301) is +/ 5.6 percent, with each 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 America
Bank 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 49 million consumer and small business relationships with approximately 5,100 retail banking offices and approximately 16,200 ATMs and award-winning online banking with 30 million active users and more than 15 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.