Metro New York Small Business Owners Optimistic About Revenue and Growth Expectations in the Coming Year
Fall 2014 Bank of America Small Business Owner Report Also Finds Metro New York Small Businesses Use Social Media More Than Anywhere Else in the Country
More than three-quarters (76 percent) of metro New York small business owners are confident they will hit their year-end revenue goals according to the fall 2014 Small Business Owner Report, released today by Bank of America. They also show continued optimism in 2015 and beyond – the study found that 64 percent plan to grow their business in the next five years and 60 percent believe their revenue will increase in the next year.
The Small Business Owner Report is a semi-annual study exploring the concerns, aspirations and perspectives of small business owners in metro New York and around the country.
Hiring and expansion expectations are also healthy: 48 percent of metro New York small business owners plan to hire in the coming year and 42 percent plan to target new industries and customers. Interestingly, entrepreneurs in metro New York are more likely than their national counterparts to expand by seeking business partners, with almost a quarter (24 percent) saying they plan to find investment partners to grow their company’s offerings (only 14 percent of small business owners nationally plan to do the same).
“Small business owners in metro New York continue to embody a sense of optimism as they look to grow their businesses in the coming year,” said Tim McDonald, metro New York Small Business Banking manger, Bank of America. “We’re committed to providing the resources and guidance entrepreneurs need to help them manage their businesses at every stage and achieve their financial goals.”
Technology – metro New Yorkers are the most tech-savvy
Integrating technology is not a problem for metro New York small business owners. More than half (53 percent) incorporate social media into their day-to-day business practices, compared with 44 percent nationally and more than any other city surveyed in the report. In addition, more are selling products and services online – 47 percent compared to 38 percent nationally, also more than anywhere else in the country.
Metro New York small business owners are also using technology to optimize day-to- day operations. More than three-quarters (79 percent) of small business owners in metro New York feel technology helps them connect more with their employees, and 74 percent say technology helps them save time.
New Yorkers optimistic about local economy, yet still have economic
Confidence in the local metro New York economy has grown over the past two years. More than half (51 percent) of metro New York small business owners feel the local economy will improve in the next 12 months, up from 47 percent in fall 2013 as well as a 17 percent increase from two years ago.
However, concerns about specific economic issues have risen. Eighty-one percent of metro New York small business owners are concerned about the effectiveness of U.S. government leaders, an 18 percent spike from six months ago and the highest of any city surveyed. Sixty-nine percent are concerned with the strength of the U.S. dollar (compared to 57 percent who expressed concern a year ago), while 65 percent are concern about healthcare costs, versus 79 percent who were concerned a year ago.
Metro New Yorkers are generous this holiday season
Given high revenue expectations for 2014 and the year ahead, small business owners in metro New York are feeling generous this holiday season. More than half (58 percent) plan to give salary bonuses to their employees, compared to 52 percent nationally. Additionally, 38 percent plan to give out gifts to employees (compared to 41 percent nationally) and 39 percent plan to close their office during the holiday (compared to 37 percent nationally).
For an in-depth look at the attributes of the nation’s small business owners, read the full fall 2014 Bank of America Small Business Owner Report and for additional metro New York-based insights, download the Small Business Owner Report New York 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 in October 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 48 million consumer and small business relationships with approximately 4,900 retail banking offices and approximately 15,700 ATMs and award-winning online banking with 31 million active users and more than 16 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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