In its latest national employment survey, which includes the Fairfield County and Westchester County markets, Bank of America found that both regionally and nationally entrepreneurs are significantly more optimistic about their business growth and the economy compared to previous reports.
“We”™re happy to say that confidence in the economy has risen dramatically. It”™s at the highest levels we”™ve seen since the survey began in 2012,” wrote Bank of America Small Business Executive Robb Hilson. “Small business owners not only anticipate a healthier economy, but they also report plans to grow their businesses and to hire more employees over the next 12 months, all at a much higher rate than in recent years.”
According to the fall 2015 Bank of America Small Business Owner Report confidence in the global and national economy is increasing in addition to local economies.
Key findings include:
- A majority (61 percent) of metro New York small business owners plan to hire ”“ about double what is was two years ago.
- Seventy percent are confident their revenue will increase in the coming year, a 10-percent jump from the previous year.
- Fifty-seven percent believe their local economy will improve in the next year; up 6 percent from the previous year.
The report also suggests on a national level small business owners are bullish on the economy for 2016.
Loan demand is up ”” a key indicator of the growth trajectory of small businesses and the health of national economy, Hilson said.
The survey highlight a significant jump in loan confidence with 35 percent of respondents stating they would apply for a loan in 2016 ”” increasing from 24 percent in the fall of 2014 and 21 percent in the fall of 2013
Small business owners are also significantly ramping-up hiring efforts. In previous reports in 2012 and 2013 the percentage of employers who said they would be hiring in the next 12 months stalled at 31 percent. That number rose to 51 percent in the fall of 2014 and has rocketed to 67 percent in the current survey.
However, the level of optimism for the future varies significantly between generational divides.
Nearly four in five (78 percent) small business owners reported plans to grow their business over the next five years, compared to 67 percent one year ago. Baby boomers respondents (age 50-68) Â were least likely to say they plan to grow their business (56 percent) Â versus 86 percent of Gen-Xers (age 35-49) and 88 percent of millennials (age 18-34)
Almost three-quarters (72 percent) of small business owners said they expect their revenue to increase in the coming year, a 10 percent increase from one year ago. Millennials are the most optimistic generation, with 80 percent expecting an increase in revenue.
The survey also found new small business owners to be more optimistic than established owners, with 71 percent of small business owners in business for less than 10 years stating they were optimistic their local economy would improve in the coming year. Of owners in business for more than 11 years, 47 percent said they were confident.
The survey was conducted by Braun Research, Inc on behalf of Bank of America and included a nationally representative sample of 1,001 small business owners in the United States with annual revenue between $100,000 and $4,999,999 and employing between 2 and 99 employees.
