“Small business owners are cautiously optimistic about 2024,” he said. sharon millerPresident and Co-Head of Business Banking, Bank of America. “With the prospect of increased revenue, many companies are focusing on engaging with customers and implementing new technologies that help differentiate their businesses.”
The 2024 Bank of America Business Owner Report includes input from more than 1,400 small business owners (defined as businesses below). $100,000 to 5 million dollars and 5 million dollars to $50 million annual income). This report examines the perspectives, goals, concerns, and prospects of business owners across the country.
“Our report found that most midsize business owners plan to expand and hire within the next year.” Raul AnayaPresident and Co-Head of Business Banking, Bank of America. “Most of these executives are confident in revenue growth, as well as in the local, national and global economies.”
Business and economic outlook
Looking at attitudes regarding the national economy, managers' outlooks vary depending on the size of their business. He found that 75% of small business owners expect the national economy to improve over the next 12 months, compared to just 33% of small business owners. same.
Medium-sized business owners (MSBOs) maintain a positive business outlook.
- 87% believe their revenue will increase over the next 12 months.
- 80% plan to expand their business over the next year.
- 69% plan to hire within the next 12 months.
- 84% said their revenue was higher in 2023 than in 2022.
For small business owners (SBOs):
- 65% expect revenue to increase over the next year (flat since last spring).
- 39% plan to expand their business over the next year.
- 30% plan to hire more employees in the next 12 months.
- 55% reported higher business revenue in 2023 than in 2022.
Top economic concerns for MSBOs include the U.S. political environment (68%), inflation (67%), supply chain (66%), and consumer spending (66%). SBOs share concerns about the U.S. political environment (75%) and inflation (73%), but they are also concerned about health care costs (69%) and interest rates (63%). 61% of MSBOs and 56% of SBOs expressed concerns about a recession, both down from 72% last spring. And while concerns about inflation are slightly lower than they were this time last year, 90% of MSBOs and 84% of SBOs still say inflation is currently impacting their business.
MSBOs' fundraising plans for the coming year are increasing, with 93% of MSBOs planning to raise (90% in Spring 2023). Financing plans are stable, with 54% planning to apply for a bank loan in the next 12 months. In contrast, SBO funding and loan application plans are down, with 71% planning to obtain business funding, down from 82% last spring. Additionally, 16% of SBOs plan to apply for a bank loan or line of credit this year, down from 24% last spring.
Based on small business credit card data compiled by banks, small businesses are increasingly relying on credit cards, with balances increasing by 18% since 2019, according to Bank of America Research Institute's recent Small Business Checkpoint. %It has increased. While the increase in balances may raise some concerns, the institute points out that there are several reasons not to be pessimistic. First, inflation has increased by more than 22% since 2019, so his inflation-adjusted credit card balance is at or below his 2019 level.
Second, all categories of small business credit card spending have seen declining levels since 2023, as small businesses take steps to manage spending and reallocate or optimize cash flow. It suggests that. However, according to the institute, although the overall balance sheet situation of small and medium-sized enterprises is relatively healthy, a decline in this behavior during and after the pandemic has led to a decline in credit card balance revolving payments (from one month to the next). It is said that the proportion of cases carried forward) is increasing.
Running a profitable business is important to business owners, but for many it comes at a personal and professional sacrifice. 70% of SBOs say they have made trade-offs to maintain business profitability, including raising prices (47%), working more hours (45%), or reducing their own pay (32%) doing.
Optimize your operations with digital tools
Business owners are implementing digital tools across their operations. In the past 12 months, most business owners (99% of MSBOs and 71% of SBOs) have digitally optimized their businesses. For many, that means doing business banking online or via apps, accepting more forms of cashless payments, and/or strengthening their social media presence. Digital tools allow business owners to save time, stay organized, reach new customers, increase customer satisfaction, and manage cash flow.
The majority of MSBOs (89%) plan to implement artificial intelligence (AI) tools this year. They plan to use these tools to streamline payroll and bookkeeping (57%), support recruiting efforts (49%), and differentiate themselves from competitors (44%).
Meanwhile, to a lesser extent, SBOs also appreciate the benefits of AI tools, with 37% planning to implement them this year and the use of similar technologies, including differentiating from competitors (47%) and streamlining. I'm listing the methods. Payroll and bookkeeping (36%), recruitment assistance (25%).
For more insights from small business owners across the country, read the full 2024 Bank of America Owners Report.
2024 Bank of America Business Owner Report Methodology
Previously conducted as two separate reports for small business owners, this year's report examines sentiment among businesses of various sizes.
Ipsos conducted the 2024 Bank of America Business Owner Report survey online From March 4th to March 28th, 2024 We use an online sample of small business owners recruited in advance. Ipsos contacted a sample of 1,038 small business owners across the country. US annual revenue between $100,000 and $4,999,999 The company employs between 2 and 99 employees. Additionally, approximately 250 small business owners were surveyed in each of the following 10 target markets: atlanta, boston, Chicago, dallas, houston, Los Angeles, miami, new york, San Francisco and WashingtonThe final results for the DC National and Designated Market Region segments were weighted based on national benchmark criteria for size, revenue, and geography.
Ipsos also interviewed a national sample of 377 small business owners. US annual revenue between 5 million dollars and $49,999,999 The company employs between 2 and 499 employees. The final results of this combined national segment and sample of small business owners are weighted based on national benchmarking criteria for size, revenue, and geography.
Bank of America Institute
Bank of America Institute is dedicated to uncovering powerful insights that advance business and society. Founded in 2022, the Institute is a think tank that leverages data and analysis from across the bank and around the world to provide timely and unique perspectives on economics, sustainability and global transformation. The institute serves 69 million consumer and small business customers, 57 million authenticated digital users, 4 dollarsThe total payment amount in 2023 is 0.1 trillion yen. 1 dollarConsumer and asset management deposits were 0.27 trillion yen. From this robust dataset, the Institute provides a unique perspective on the health of the economy. It also enhances thought leadership across the bank, addresses long-term trends, and shares its findings with the public.
american bank
Bank of America is one of the world's leading financial institutions, providing a full range of banking, investment, asset management, and other financial and risk management products and services to individuals, small businesses, and large corporations.The company offers unparalleled convenience USis an award-winning digital banking company with approximately 3,800 retail financial centers, approximately 15,000 automated teller machines (ATMs), and approximately 57 million authenticated digital users, serving approximately 69 million consumers and customers. We serve small and medium-sized business customers. Bank of America is a global leader in wealth management, corporate banking, investment banking and trading across a wide range of asset classes, serving businesses, governments, institutions and individuals around the world. Bank of America provides industry-leading support to approximately 4 million small business households through a suite of innovative and easy-to-use online products and services. The company serves customers through various businesses. US, its territory and more than 35 countries. Bank of America Corporation's stock is traded on the New York Stock Exchange (NYSE:BAC).
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SOURCE Bank of America Corporation
