May 1, 2024 at 8:55 AM Eastern
B of A Survey: Majority of Small and Mid-Sized Business Owners Anticipate Revenue Growth This Year
eighty seven percent of Mid-Sized Business Owners and sixty five percent of Small Business Owners Expect Revenue Increases Over Next 12 Months
CHARLOTTE, North Carolina – A majority of small and mid-sized business owners expect their revenues to increase this year, and their worries over a recession have declined substantially, according to the 2024 Bank of America Business Owner Report (PDF), conducted in partnership with Bank of America Institute. While business owners remain mindful of the impacts of inflation and interest rates on their bottom lines, both concerns have lessened since Spring 2023. And despite some lingering uncertainties over the broader economy, business owners plan to expand their businesses in the year ahead.
“Small business owners remain cautiously optimistic in 2024,” said Sharon Miller, President and Co-Head of Business Banking at Bank of America. “With anticipated revenue increases, many are focused on engaging with customers and implementing new technologies that will help them differentiate their businesses.”
The twenty twenty four Bank of America Business Owner Report includes input from more than 1,400 small and mid-sized business owners (defined as businesses with one hundred thousand dollars to five million dollars and five million dollars to fifty million dollars in annual revenues, respectively). The report explores the viewpoints, goals, concerns and outlooks of business owners nationwide.
“Our report finds that most mid-sized business owners are planning to expand their businesses and hire in the coming year,” said Raul Anaya, President and Co-Head of Business Banking at Bank of America. “Most of these business owners are confident in their revenue growth as well as in the local, national and global economies.”
When looking at attitudes concerning the national economy, business owners’ outlooks varied by the size of their business: seventy five percent of mid-sized business owners expect the national economy to improve over the next 12 months, while just thirty three percent of small business owners expect the same.
Mid-sized business owners (M S B Os) maintain a positive business outlook:
Among small business owners (S B Os):
Top economic concerns for M S B Os include the U.S. political environment (sixty eight percent), inflation (sixty seven percent), supply chain (sixty six percent) and consumer spending (sixty six percent). S B Os share concern over the U.S. political environment (seventy five percent) and inflation (seventy three percent) but are also concerned about health care costs (sixty nine percent) and interest rates (sixty three percent). sixty one percent of M S B Os and fifty six percent of S B Os noted concerns about recession, both down from seventy two percent last spring. And while concerns over inflation have come down slightly since this time last year, ninety percent of M S B Os and eighty four percent of S B Os still say that inflation is currently impacting their business.
Funding plans have increased for M S B Os in the year ahead, with ninety three percent of M S B Os planning to obtain funding (ninety percent in spring twenty twenty three). Financing plans have stayed steady with fifty four percent planning to apply for a bank loan in the next 12 months. In contrast, funding and loan application plans have decreased for S B Os – with seventy one percent planning to obtain funding for their business, down from eighty two percent last spring; and sixteen percent of S B Os plan to apply for a bank loan or line of credit this year, down from twenty four percent last spring.
According to Bank of America Institute’s recent Small Business Checkpoint, small businesses have become more reliant on credit cards, with balances up eighteen percent since twenty nineteen, based on the bank’s aggregated small business credit card data. While rising balances could raise some concerns, the Institute notes a few reasons to be less pessimistic. First, inflation increased over twenty two percent since twenty nineteen, so inflation-adjusted credit card balances are comparable to, or even lower than, twenty nineteen levels.
Second, across all categories of small business credit card spending, levels have come down since twenty twenty three, suggesting small businesses are taking steps to manage spending and reallocate or optimize cash flow. However, according to the Institute, while balance sheet conditions are relatively healthy for small businesses overall, an increasing portion of their credit card balances are revolving – carrying from one month to the next – after a decline in this behavior during and post pandemic.
Running a profitable business is important to business owners and, for many, it comes with personal and professional sacrifices. seventy percent of S B Os say they have made tradeoffs to maintain their business’ profitability, such as increasing prices (forty seven percent), working more hours (forty five percent) and reducing their own salary (thirty two percent).
Business owners are implementing digital tools across their operations. Over the past 12 months, most business owners (ninety nine percent of M S B Os and seventy one percent of S B Os) have digitally optimized their business. For many, that means doing their business banking online or via an app, accepting more forms of cashless payments and/or bolstering their social media presence. Using digital tools has helped business owners save time, stay organized, reach new customers, increase customer satisfaction and manage cash flow.
The vast majority of M S B Os (eighty nine percent) plan to implement artificial intelligence (A I) tools this year. They plan to use these tools to streamline their payroll and bookkeeping (fifty seven percent), assist with hiring efforts (forty nine percent) and stand out from competitors (forty four percent).
Meanwhile, S B Os also are evaluating the benefits of A I tools, albeit to a lesser extent, with thirty seven percent planning to implement A I tools this year – citing similar ways they may use the technology, including to differentiate themselves from competitors (forty seven percent), streamline their payroll and bookkeeping (thirty six percent) and assist with hiring efforts (twenty five percent).
For an in-depth look at the insights of the nation’s small and mid-sized business owners, please read the full twenty twenty four Bank of America Business Owner Report.
Previously conducted as two separate reports for small and mid-sized business owners, this year’s report explores sentiment among businesses of different sizes.
Ipsos conducted the twenty twenty four Bank of America Business Owner Report survey online between March fourth twenty twenty four and March twenty eighth twenty twenty four using a pre-recruited online sample of small business owners. Ipsos contacted a national sample of 1,038 small business owners in the United States with annual revenue between one hundred thousand dollars and four million nine hundred ninety nine thousand nine hundred ninety nine dollars and employing between two and 99 employees. In addition, approximately 250 small business owners were surveyed in each of 10 target markets: Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Miami, New York, San Francisco and Washington, D C The final results for the national and designated market area segments were weighted to national benchmark standards for size, revenue and region.
Ipsos also interviewed a national sample of 377 medium-sized business owners in the United States with annual revenue between five million dollars and forty nine million nine hundred ninety nine thousand nine hundred ninety nine dollars and employing between two and 499 employees. The final results for this national segment and a combined sample of the small and medium-sized business owners were weighted to national benchmark standards for size, revenue and region.
Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in twenty twenty two, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from 69 million consumer and small business clients, 57 million verified digital users, four point one trillion dollars in total payments in twenty twenty three and one point two seven trillion dollars in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.
Bank 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 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 A T Ms (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, 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 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (N Y S E B A C).
Susan Atran, Bank of America
Phone: one six four six seven four three zero seven nine one
susan.atran@bofa.com
Anu Ahluwalia, Bank of America
Phone: one six four six eight five five three three seven five
anu.ahluwalia@bofa.com
To download files for editorial use, visit Small Business in our media content library.
May 1, 2024 at 8:55 AM Eastern
B of A Survey: Majority of Small and Mid-Sized Business Owners Anticipate Revenue Growth This Year
eighty seven percent of Mid-Sized Business Owners and sixty five percent of Small Business Owners Expect Revenue Increases Over Next 12 Months
CHARLOTTE, North Carolina – A majority of small and mid-sized business owners expect their revenues to increase this year, and their worries over a recession have declined substantially, according to the 2024 Bank of America Business Owner Report (PDF), conducted in partnership with Bank of America Institute. While business owners remain mindful of the impacts of inflation and interest rates on their bottom lines, both concerns have lessened since Spring 2023. And despite some lingering uncertainties over the broader economy, business owners plan to expand their businesses in the year ahead.
“Small business owners remain cautiously optimistic in 2024,” said Sharon Miller, President and Co-Head of Business Banking at Bank of America. “With anticipated revenue increases, many are focused on engaging with customers and implementing new technologies that will help them differentiate their businesses.”
The twenty twenty four Bank of America Business Owner Report includes input from more than 1,400 small and mid-sized business owners (defined as businesses with one hundred thousand dollars to five million dollars and five million dollars to fifty million dollars in annual revenues, respectively). The report explores the viewpoints, goals, concerns and outlooks of business owners nationwide.
“Our report finds that most mid-sized business owners are planning to expand their businesses and hire in the coming year,” said Raul Anaya, President and Co-Head of Business Banking at Bank of America. “Most of these business owners are confident in their revenue growth as well as in the local, national and global economies.”
When looking at attitudes concerning the national economy, business owners’ outlooks varied by the size of their business: seventy five percent of mid-sized business owners expect the national economy to improve over the next 12 months, while just thirty three percent of small business owners expect the same.
Mid-sized business owners (M S B Os) maintain a positive business outlook:
Among small business owners (S B Os):
Top economic concerns for M S B Os include the U.S. political environment (sixty eight percent), inflation (sixty seven percent), supply chain (sixty six percent) and consumer spending (sixty six percent). S B Os share concern over the U.S. political environment (seventy five percent) and inflation (seventy three percent) but are also concerned about health care costs (sixty nine percent) and interest rates (sixty three percent). sixty one percent of M S B Os and fifty six percent of S B Os noted concerns about recession, both down from seventy two percent last spring. And while concerns over inflation have come down slightly since this time last year, ninety percent of M S B Os and eighty four percent of S B Os still say that inflation is currently impacting their business.
Funding plans have increased for M S B Os in the year ahead, with ninety three percent of M S B Os planning to obtain funding (ninety percent in spring twenty twenty three). Financing plans have stayed steady with fifty four percent planning to apply for a bank loan in the next 12 months. In contrast, funding and loan application plans have decreased for S B Os – with seventy one percent planning to obtain funding for their business, down from eighty two percent last spring; and sixteen percent of S B Os plan to apply for a bank loan or line of credit this year, down from twenty four percent last spring.
According to Bank of America Institute’s recent Small Business Checkpoint, small businesses have become more reliant on credit cards, with balances up eighteen percent since twenty nineteen, based on the bank’s aggregated small business credit card data. While rising balances could raise some concerns, the Institute notes a few reasons to be less pessimistic. First, inflation increased over twenty two percent since twenty nineteen, so inflation-adjusted credit card balances are comparable to, or even lower than, twenty nineteen levels.
Second, across all categories of small business credit card spending, levels have come down since twenty twenty three, suggesting small businesses are taking steps to manage spending and reallocate or optimize cash flow. However, according to the Institute, while balance sheet conditions are relatively healthy for small businesses overall, an increasing portion of their credit card balances are revolving – carrying from one month to the next – after a decline in this behavior during and post pandemic.
Running a profitable business is important to business owners and, for many, it comes with personal and professional sacrifices. seventy percent of S B Os say they have made tradeoffs to maintain their business’ profitability, such as increasing prices (forty seven percent), working more hours (forty five percent) and reducing their own salary (thirty two percent).
Business owners are implementing digital tools across their operations. Over the past 12 months, most business owners (ninety nine percent of M S B Os and seventy one percent of S B Os) have digitally optimized their business. For many, that means doing their business banking online or via an app, accepting more forms of cashless payments and/or bolstering their social media presence. Using digital tools has helped business owners save time, stay organized, reach new customers, increase customer satisfaction and manage cash flow.
The vast majority of M S B Os (eighty nine percent) plan to implement artificial intelligence (A I) tools this year. They plan to use these tools to streamline their payroll and bookkeeping (fifty seven percent), assist with hiring efforts (forty nine percent) and stand out from competitors (forty four percent).
Meanwhile, S B Os also are evaluating the benefits of A I tools, albeit to a lesser extent, with thirty seven percent planning to implement A I tools this year – citing similar ways they may use the technology, including to differentiate themselves from competitors (forty seven percent), streamline their payroll and bookkeeping (thirty six percent) and assist with hiring efforts (twenty five percent).
For an in-depth look at the insights of the nation’s small and mid-sized business owners, please read the full twenty twenty four Bank of America Business Owner Report.
Previously conducted as two separate reports for small and mid-sized business owners, this year’s report explores sentiment among businesses of different sizes.
Ipsos conducted the twenty twenty four Bank of America Business Owner Report survey online between March fourth twenty twenty four and March twenty eighth twenty twenty four using a pre-recruited online sample of small business owners. Ipsos contacted a national sample of 1,038 small business owners in the United States with annual revenue between one hundred thousand dollars and four million nine hundred ninety nine thousand nine hundred ninety nine dollars and employing between two and 99 employees. In addition, approximately 250 small business owners were surveyed in each of 10 target markets: Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Miami, New York, San Francisco and Washington, D C The final results for the national and designated market area segments were weighted to national benchmark standards for size, revenue and region.
Ipsos also interviewed a national sample of 377 medium-sized business owners in the United States with annual revenue between five million dollars and forty nine million nine hundred ninety nine thousand nine hundred ninety nine dollars and employing between two and 499 employees. The final results for this national segment and a combined sample of the small and medium-sized business owners were weighted to national benchmark standards for size, revenue and region.
Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in twenty twenty two, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from 69 million consumer and small business clients, 57 million verified digital users, four point one trillion dollars in total payments in twenty twenty three and one point two seven trillion dollars in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.
Bank 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 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 A T Ms (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, 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 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (N Y S E B A C).
Susan Atran, Bank of America
Phone: one six four six seven four three zero seven nine one
susan.atran@bofa.com
Anu Ahluwalia, Bank of America
Phone: one six four six eight five five three three seven five
anu.ahluwalia@bofa.com
To download files for editorial use, visit Small Business in our media content library.
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