Despite Lingering Economic Concerns, Local
Entrepreneurs Plan for a Robust 2016
Small business owners in the Dallas/Fort Worth area are
overwhelmingly optimistic about their businesses over the next 12
months, according to the fall 2015 Bank of America Small Business
Owner Report, a semi-annual study exploring the concerns,
aspirations and perspectives of small business owners in the
Dallas/Fort Worth area and around the country.
Nearly three-quarters (72 percent) of Dallas/Fort Worth small
business owners anticipate an increase in revenue over the next 12
months, an 8 percentage point jump from last year. Area small
business owners are also planning to hire more in 2016: 65 percent
have indicated that they plan to add employees in the next 12
months, compared with 46 percent in fall 2014. This represents the
highest rate of intent to hire since the inception of the survey in
2012.
Not surprisingly, this expected growth demands more capital.
More than one in four (27 percent) Dallas small business owners
plan to apply for a loan in 2016. More than half (57 percent) of
those applying for a loan say they intend to use the capital to
invest in new equipment.
“Dallas/Fort Worth small business owners have demonstrated
extraordinary resilience and perseverance these last few years, and
they’re excited about growing their business in 2016,” said Jeffrey
Coomer, Dallas/Fort Worth small business banker manager at Bank of
America. “The local spike in confidence in the economy, revenue
growth and hiring will lead to a bright future for the area in the
year ahead.”
Economic confidence is on the rise, despite lingering
concernsDallas/Fort Worth small business owners are also
bullish on the local economy: Nearly two-thirds (63 percent)
believe the local Dallas/Fort Worth economy will improve in the
next year, an increase of 11 percentage points from a year ago.
Almost half (48 percent) also expressed confidence in the national
economy (versus 44 percent a year ago). Skepticism remains on the
performance of the global economy, as almost one-third (32 percent)
expressed confidence, compared to 33 percent one year ago.
When asked about their top concerns, Dallas/Fort Worth small
business owners believe the following factors could potentially
impact their businesses over the next 12 months:
- The upcoming U.S. presidential election
(40 percent).
- The possibility of a minimum wage
increase (38 percent).
- The possibility of future interest rate
hikes (37 percent).
- Financial crises in countries abroad
[i.e., China and Greece] (34 percent).
Area small business owners slowly adopting popular workplace
trendsDallas/Fort Worth small businesses are supporting more
flexible work arrangements for employees, with 41 percent offering
telecommuting options, compared with 27 percent five years ago.
However, Dallas/Fort Worth small businesses trail their
counterparts nationally when it comes to those offering
telecommuting (47 percent).
Similar to their peers nationwide, small business owners in the
Dallas/Fort Worth area are beginning to offer nontraditional perks,
including office happy hours (21 percent), areas to relax and
unwind, such as nap pods or game rooms (15 percent) or the ability
to bring pets to work (14 percent).
Cybersecurity raises concerns; Dallas/Fort Worth small
businesses preparingNearly one in 10 (8 percent) Dallas/Fort
Worth small business owners have been the victim of a cybersecurity
breach. Although this trails the national average of 12 percent,
Dallas entrepreneurs are still showing concern: More than half (54
percent) of area small business owners worry about the security of
their customers’ proprietary data, and more than half (54 percent)
of local small business owners say they are prepared for an
attack.
Dallas/Fort Worth owners looking forward to a successful
year-endDallas/Fort Worth small business owners expect to end
the year on a high note: 81 percent say it’s likely they will hit
their year-end revenue goal, which is 10 percentage points higher
than last year. Many small business owners in the area intend to
offer year-end perks to their employees, including salary bonuses
(54 percent), office closures (49 percent) or a holiday party (45
percent).
When it comes to holiday milestones, Black Friday and Cyber
Monday are not necessarily critical to Dallas business owners’
bottom line. Fifty-seven percent say Black Friday has no impact on
their business’ bottom line, and similarly, 64 percent think Cyber
Monday is overhyped and has no significance to their business’
bottom line.
For an in-depth look at the attributes of the nation’s small
business owners, read the full fall 2015 Bank of America Small
Business Owner Report, and for additional insights from small
business owners in Dallas/Fort Worth and across the country,
download the Small Business Owner Report local insights infographic
here.
About the Bank of America Small Business Owner ReportBraun
Research, Inc. conducted the Bank of America Small Business Owner
Report survey by phone from August 21 through September 22, 2015,
on behalf of Bank of America. Braun contacted 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. In addition, 300 small
business owners were surveyed in each of 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 is +/- 5.7 percent, reported at a 95 percent confidence
level.
The Braun Research survey results conducted on behalf and for
the exclusive use 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 AmericaBank 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
47 million consumer and small business relationships with
approximately 4,700 retail financial centers, approximately 16,100
ATMs, and award-winning online banking with 32 million active users
and more than 18 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 all 50 states, the District of Columbia, the U.S.
Virgin Islands, Puerto Rico and more than 35 countries. Bank of
America Corporation stock (NYSE: BAC) is listed on the New York
Stock Exchange.
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