Local small business owners are projecting strong outlooks for their business this spring, though revenue, growth and hiring plans have declined somewhat in the last six months, according to the spring 2019 Bank of America Business Advantage Small Business Owner Report. At the same time, Boston entrepreneurs are less confident in the economy, reporting concern over several economic issues.
The report, based on a semiannual survey of over 1,500 small business owners across the country and the greater Boston area, reveals that:
“Boston business owners anticipate a positive 2019 but are adopting a more conservative business outlook amidst growing economic concerns,” said Kevin Kelly, Northeast small business division executive at Bank of America. “Despite the more cautious view, Boston entrepreneurs are planning to grow their businesses and hire more employees than many of their peers nationwide.”
Sixty-one percent of Boston entrepreneurs expressed concern about the current political environment, though they are divided over how major policy issues are directly impacting them. Half of Boston business owners say the new tax code has had an impact on their business — with 24 percent reporting that impact as positive. This is down from the 40 percent who anticipated a positive impact one year ago.
Regarding U.S. trade policy, 47 percent say they have been impacted by tariffs, with 19 percent reporting that impact as negative, 19 percent reporting it as mixed and 9 percent reporting it as positive. Additionally, 39 percent of Boston 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 many Boston entrepreneurs are taking steps to protect their business from potential threats such as natural disasters, an economic downturn or a cyber breach, most Boston business owners 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 60 percent of Boston business owners have received a negative online review of their business, 65 percent believe positive reviews have a greater impact, and 35 percent say negative reviews matter more.
Furthermore, 73 percent say reviews are important to the success of their business, with 82 percent reporting that positive reviews have helped generate business opportunities. Recognizing that negative reviews do have an impact, 72 percent of Boston 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.
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.
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Trevor Koenig, Bank of America