Entrepreneurs Split on Impact of Tax Reform, Trade Policies
Local entrepreneurs are maintaining a strong business outlook this spring, with optimism toward all business growth indicators above the national average, according to the spring 2019 Bank of America Business Advantage Small Business Owner Report. At the same time, Atlanta entrepreneurs are less confident in the national economy, reporting concern over several economic issues and mixed views on the impact of last year’s landmark tax reform and trade tariffs.
The report, based on a semiannual survey of over 1,500 small business owners across the country and the Greater Atlanta area, reveals that:
Atlanta entrepreneurs’ business outlook for the next 12 months is strong:
While Atlanta business owners remain confident in their local economy, confidence in the national economy has declined since fall 2018. Over the next 12 months:
“Atlanta business owners maintain an overall positive outlook for 2019,” said Steve Turner, Atlanta small business division executive at Bank of America. “While Atlanta entrepreneurs are increasingly wary of an economic downturn, they remain confident in the local economy and are looking forward to growth and expansion in the months ahead.”
Sixty-four percent of Atlanta entrepreneurs expressed concern about the current political environment, though they are divided over how major policy issues are directly impacting them. Fifty-one percent of Atlanta business owners say the new tax code has had an impact on their business — with 32 percent reporting that impact as positive. This is down from the 47 percent who anticipated a positive impact one year ago.
Regarding U.S. trade policy, 43 percent say they have been impacted by tariffs, with 21 percent reporting that impact as mixed, 11 percent reporting it as negative and 11 percent reporting it as positive. Additionally, 31 percent of Atlanta entrepreneurs say they’re concerned about climate change impacting their business.
Unexpected or major economic events can transform a business in the blink of an eye. While most Atlanta entrepreneurs are taking steps to protect their businesses from potential threats such as natural disasters, an economic downturn or a cyber breach, most Atlanta entrepreneurs do not have a plan to address reputational crises or challenges.
Customer feedback holds tremendous sway in the digital era, with online reviews serving as a powerful channel for sharing both compliments and criticisms. While 58 percent of Atlanta business owners have received a negative online review of their business, 55 percent believe positive reviews matter the most, while 45 percent say negative reviews have a greater impact.
Furthermore, 75 percent say reviews are important to the success of their business, with 84 percent reporting that positive reviews have helped generate business opportunities. Recognizing that negative reviews also have an impact, 72 percent of business owners who have received one say they respond as soon as possible to limit the reputational damage.
For a complete, in-depth look at the insights of the nation’s small business owners, read the spring 2019 Bank of America Business Advantage Small Business Owner Report. For additional insights, download the Small Business Owner Report infographic.
Ipsos Public Affairs conducted the Bank of America Small Business Owner Report Survey for spring 2019 online between February 8 and February 24, 2019 using a pre-recruited online sample of small business owners. Ipsos contacted a national sample of 1,504 small business owners in the United States with annual revenue between $100,000 and $4,999,999 and employing between two and 99 employees. In addition, a total of approximately 300 small business owners were also 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 were weighted to national benchmark standards for size, revenue and region.
Prior to 2016, previous waves of the Small Business Owner Report Survey were conducted by telephone and while best efforts were made to replicate processes, differences in sample, weighting and method suggests caution when making direct statistical comparisons of the results from pre-2016 and post-2016.
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 66 million consumer and small business clients with approximately 4,400 retail financial centers, including approximately 1,800 lending centers, 2,200 financial centers with a Consumer Investment Financial Solutions Advisor, and 1,500 business centers; approximately 16,400 ATMs; and award-winning digital banking with more than 37 million active users, including over 27 million mobile 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 3 million small business owners 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 approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Reporters May Contact:
Matthew Daily, Bank of America