With Rising Revenues and Economic Confidence High, Boston Small Businesses Look to Hire Amid Tightening Job Market
Local entrepreneurs are finishing 2018 on a high note, with most Boston-area small business owners reporting anticipated year-over-year revenue growth and indicating plans to hire and expand in the year ahead, according to the fall 2018 Bank of America Business Advantage Small Business Owner Report. While the majority of business owners are pleased with the direction of the economy, Boston entrepreneurs are struggling to land qualified employees in a highly competitive local job market.
The report, based on a semiannual survey of 1,000 small business owners across the country and the greater Boston area, revealed that 91 percent of Boston entrepreneurs are confident their year-end revenue will exceed that of 2017. In addition, over the next 12 months:
“Boston business owners are experiencing a sustained pattern of revenue growth and are looking to take advantage of a strong economy,” said Kevin Kelly, Northeast small business division executive at Bank of America. “We’re seeing multi-year highs in hiring and loan application plans, but rapid business growth in Boston is being tempered by a highly competitive talent market.”
As Boston business owners make plans to hire in the year ahead, they acknowledge that identifying and retaining employees has become a significant challenge. In the last year, turnover affected 26 percent of Boston entrepreneurs. Among business owners who sought to hire new employees, 48 percent say they had difficulty finding qualified candidates, in large part due to the tightening job market.
To adjust to these challenges, entrepreneurs have modified their hiring strategies to find and recruit top talent by:
When it comes to the top characteristics Boston business owners are looking for in their potential job candidates, entrepreneurs primarily value previous work experience (52 percent), passion for the work and mission of the business (48 percent), and the ability to learn new skills (47 percent).
In correlation with positive business forecasts, the survey found a general trend of declining or unchanged concern over most economic factors that are tracked. Health care costs remain at the top of the list of economic concerns in Boston and the highest nationwide — at 69 percent. Concern over corporate taxes decreased significantly, with only 41 percent still identifying this as a burdensome issue nearly a year after the enactment of U.S. tax reform, down from 53 percent in fall 2017.
Perhaps a result of recent changes to and uncertainty about trade policies, 48 percent of Boston business owners identify a more aggressive U.S. trade policy as an economic concern. Forty-three percent say the latest tariffs/U.S. trade policies have impacted their businesses, with 17 percent reporting a negative impact, 14 percent reporting a positive impact and 12 percent reporting both positive and negative effects.
On a positive note, Boston business owners are feeling the holiday spirit, as 90 percent plan to offer at least one holiday perk to their employees. The top holiday perks being offered are office closures (53 percent), salary bonuses (45 percent), holiday parties (41 percent) and flexible hours or vacation time (41 percent). Finally, despite unique challenges in managing a small business, Boston entrepreneurs love what they do. Ninety percent say the added stress of entrepreneurship has been worth it, and 84 percent would recommend that others follow in their footsteps.
For a complete, in-depth look at the insights of the nation’s small business owners, read the fall 2018 Bank of America Business Advantage Small Business Owner Report.
For holiday shoppers looking to support local small businesses this season, Bank of America encourages a trip to the Downtown Boston Holiday Market at 467 Washington Street (across from Macy’s), where 20 local artisans are offering an array of unique, handmade crafts. The market is open throughout December.
GfK Social and Strategic Research conducted the Bank of America Small Business Owner Report Survey for fall 2018 online between August 30 and September 13, 2018, using a pre-recruited online sample of small business owners. GfK contacted a national sample of 1,067 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 67 million consumer and small business clients with approximately 4,400 retail financial centers, approximately 16,100 ATMs, and award-winning digital banking with more than 36 million active users, including nearly 26 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 more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
# # #
Reporters may contact:
Trevor Koenig, Bank of America
Phone: 302.432.1150
trevor.koenig@bofa.com
.jpg/_jcr_content/renditions/original){kind=logo}
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.
This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security, financial instrument, or strategy. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.
Content contained herein may have been produced by an outside party that is not affiliated with Bank of America or any of its affiliates (Bank of America). Opinions or ideas expressed are not necessarily those of Bank of America nor do they reflect their views or endorsement. These materials are for informational purposes only. Bank of America does not assume liability for any loss or damage resulting from anyone's reliance on the information provided. Certain links may direct you away from Bank of America to an unaffiliated site. Bank of America has not been involved in the preparation of the content supplied at the unaffiliated sites and does not guarantee or assume any responsibility for its content. When you visit these sites, you are agreeing to all of their terms of use, including their privacy and security policies.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.
Trust and fiduciary services are provided by Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC, and a wholly-owned subsidiary of Bank of America Corporation (“BofA Corp.”). Insurance and annuity products are offered through Merrill Lynch Life Agency Inc. (“MLLA”), a licensed insurance agency and wholly-owned subsidiary of BofA Corp.
Investment products offered through MLPF&S and insurance and annuity products offered through MLLA:
| Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value |
| Are Not Deposits | Are Not Insured by Any Governmental Agency | Are Not a Condition to Any Banking Service or Activity |
Bank of America" is the marketing name for the global banking and global markets business of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation ("Investment Banking Affiliates"), including, in the United States, BofA Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA.
Company goals are aspirational and not guarantees or promises that all goals will be met. Statistics and metrics included in our ESG documents are estimates and may be based on assumptions or developing standards.
© 2021 Bank of America Corporation. All rights reserved.
Bank of America, N.A. Member FDIC. Equal Housing Lender
© 2021 Bank of America Corporation.
Connect with us
Subscribe to press release updates