BANK OF AMERICA
Local Entrepreneurs Increase Expectations in Revenue and Business Growth
Sixty-three percent of Dallas/Fort Worth small business owners say they plan to work into their golden years, according to the spring 2014 Small Business Owner Report, released today by Bank of America. Dallas/Fort Worth small business owners are more likely than their counterparts in other cities to work past the age of 65 or until they are no longer physically able.
The report, a semi-annual study exploring the concerns, aspirations and perspectives of small business owners in Dallas/Fort Worth and around the country, found considerable optimism about the years ahead. Over the next five years, 61 percent of small business owners in the Dallas/Fort Worth area plan to grow their business and 50 percent think their local economy will improve over the next year.
When it comes to expectations for their own companies, more than half (56 percent) of area respondents said they anticipate their revenue will increase in the coming year, compared to 52 percent a year ago. Nearly half (47 percent) of Dallas/Fort Worth small business owners plan to focus on expanding their business to new industries and customers over the next 12 months.
“Dallas/Fort Worth small business owners have an exceptionally strong commitment to their businesses, working well beyond their years and conveying continued optimism about the future,” said Julie Hoad, Small Business Banking manager at Bank of America. “The findings from this report reinforce the spirit we see with our clients every day, and we look forward to continuing to help provide them with the tools they need to grow their operations.”
Sacrifices on the way to success
The report also looked at the effect running a small business has on family life. When asked about the demands of owning a small business, 61 percent of Dallas/Fort Worth small business owners responded that they feel like they should be spending more time with their families, while only 52 percent of national respondents felt this way.
The majority of Dallas/Fort Worth small business owners feel they work hard and can balance work and life through an average 49-hour work week. When it comes to work-life balance, three in four (76 percent) feel they have made personal sacrifices for their business, and their most common regret is not spending enough time with loved ones (34 percent).
Key differences between men and women
The report also delved into the perspectives of women small business owners, a rapidly rising demographic. Forty-three percent plan to hire more employees in the next 12 months, compared to 38 percent of male small business owners in the Dallas/Fort Worth area.
Thirty-one percent of women say they get to spend more time with their family as a result of running their small business, compared to 17 percent of men. Additionally, 22 percent of women say gender stereotypes are a major reason they feel like they should be spending more time on different things, compared to only nine percent of men.
Retiring later, with no heir in place
Dallas/Fort Worth small business owners are especially committed to their businesses as 67 percent say the reason they want to retire later is because they enjoy running their business and do not want to stop working. This is one of the highest as compared to other parts of the country.
Fifty-three percent of small business owners in Dallas/Fort Worth do not have a succession plan in place, with one-third (32 percent) attributing this to not having a successor. Among those with children, only 26 percent of small business owners in Dallas/Fort Worth currently have their children working for their business, and 38 percent have not decided if their children will run their business in the future.
Economic concerns remain
Despite an overall optimistic outlook on their own businesses and the local economy, Dallas/Fort Worth small business owners are still concerned about a number of economic factors. Health care costs top the list, with 70 percent of respondents raising concern. Other concerns include:
Small business owners in Dallas/Fort Worth are also wary about the economy on a macro level, even if concerns are subsiding about economic factors in their own backyard. Thirty-six percent are not confident that the global economy will improve over the next 12 months, and 37 percent said the same about the U.S. economy.
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 over $819 million in new loans to small businesses in Texas – a 34 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 Dallas/Fort Worth-based insights, download the Small Business Owner Report Dallas/Fort Worth 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.
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