Small Businesses Welcome Next Decade

U.S. small business owners are entering the new decade on a high note, with 82 percent anticipating year-over-year revenue growth as they close out 2019, according to the Bank of America Business Advantage Fall 2019 Small Business Owner Snapshot. Locally, businesses like The Pie Guy in Manchester confirm the report’s findings.

Entrepreneurs are confident about their business prospects, with expansion plans, revenue projections and intent to hire remaining strong and steady from last fall. While business owners also maintain a positive outlook for their local economies (52 percent vs. 54 percent in fall 2018), they are expressing a slightly more cautious view of the national economy (49 percent, down from 55 percent in fall 2018). The top five factors influencing business owners’ confidence in the national economy this fall are elections (91 percent), U.S. political climate (90 percent), GDP growth rate (89 percent), inflation (89 percent) and interest rates (89 percent).

Theresa Burnley, owner of The Pie Guy, recalls that their initial vision was to have fun selling pies locally, but before long they were selling “products by the pallet.” Her business, which received an initial capital investment from Bank of America, now has a national distribution and is focused on building a national brand that can bring excitement into the store bakery industry.

Burnley is also an example of how future revenue projections and expansion plans are stronger among women business owners compared to their male counterparts. A previous report from Bank of America found that 73 percent of women business owners plan to expand in 2020 compared to 66 percent of male business owners; and 62 percent expect revenue growth compared to 55 percent of male business owners.

The Fall 2019 Small Business Owner Snapshot, based on a semiannual survey of more than 1,600 entrepreneurs across the country, also reveals:

Small business growth indicators remain steady and strong

• 69 percent plan to expand (up slightly from 67 percent in fall 2018).
• 58 percent expect their revenue to increase (level with 57 percent from fall 2018).
• 24 percent plan to hire (down slightly from 27 percent in fall 2018).
• 12 percent intend to apply for a loan (down slightly from 15 percent in fall 2018).

Concern about health care costs and the political environment declined, while concern about other economic issues is on the rise

• The top two economic concerns for entrepreneurs in the year ahead are health care costs (61 percent) and the political environment (61 percent), though they declined from 66 percent and 65 percent, respectively, since spring 2019.
• Conversely, the survey found increasing concerns related to consumer spending (54 percent vs. 47 percent in spring 2019), the strength of the U.S. dollar (50 percent vs. 46 percent in spring 2019) and corporate tax rates (45 percent vs. 40 percent in spring 2019).

Holiday season brings challenges and stressors, but resilient business owners have ways to cope
During the holiday season, entrepreneurs are preparing for the unique challenges and opportunities that come with this busy time of year. Sixty-six percent expect to face challenges this holiday season, including balancing work and personal commitments (42%), creating customer demand (37%) and keeping prices competitive (36%).

More than half of entrepreneurs (54%) feel stressed during the holidays. As stress levels rise, they plan to cope by taking extra steps toward self-care (48%), going on a vacation (38 percent) and developing processes to handle the influx of business (25%). Nearly three-quarters of entrepreneurs also look forward to spending time with family and friends during this time, 29% plan to provide employees special perks and bonuses and 28% plan to give back to their local communities.

For a complete, in-depth look at the insights of small business owners, read the Bank of America Business Advantage Fall 2019 Small Business Owner Snapshot.

About the Bank of America Business Advantage Fall 2019 Small Business Owner Snapshot: Ipsos Public Affairs conducted the Bank of America Small Business Owner Report Survey for fall 2019 online between July 19 and August 19, 2019, using a pre-recruited online sample of small business owners. Ipsos contacted a national sample of 1,323 small business owners in the United States with annual revenue between $100,000 and $4,999,999 and employing between two and 99 employees.