Annual Bank of America report also spotlights
women, Hispanic-Latino, Black, and Asian American and Pacific
Islander business owners' concerns and outlook
CHARLOTTE, N.C., Oct. 4, 2023
/PRNewswire/ -- Small business owners nationwide continue to be
bullish on their own business outlook, as 67% anticipate revenue
growth over the next 12 months, despite the ongoing impacts of
inflation and high operating costs, according to Bank of America's
2023 Women & Minority Business Owner Spotlight.
The survey of more than 1,000 small business owners across the
country explores the outlook of all entrepreneurs, with specific
insights on the perspectives of women, Black, Hispanic-Latino, and
Asian American and Pacific Islander (AAPI) business owners around
access to capital, business outlook, work-life balance and
community support. Notably, the new study found:
- Economic confidence has dropped since last fall, as 34% of
entrepreneurs believe the national economy will improve over the
next 12 months (down from 44%), and 41% believe their local economy
will improve (down from 48%).
- 77% of small business owners plan to obtain funding for their
business, down from 83% in Fall 2022.
- 51% of women business owners believe they currently have equal
access to capital, up from 48% in Fall 2022.
- Hispanic-Latino business owners' revenue expectations held
steady despite a notable drop in economic confidence, with 91%
believing their revenue will increase or stay the same over the
coming year.
- Over the next 12 months, 56% of Black business owners plan to
hire more employees, up significantly from 44% in Fall 2022.
- 89% of AAPI business owners think their revenue will increase
or stay the same over the next year.
"While facing multiple obstacles and challenges over the past
year, today's entrepreneurs continue to persevere and move forward
with their growth and expansion plans," said Sharon Miller, President, Small Business, Head
of Specialty Banking and Lending at Bank of America. "Our newest
report illustrates that despite a changing business landscape,
women and minority small business owners continue to forge their
own pathways to success while remaining pillars in their local
economies."
Inflation concerns top-of-mind for business owners, as supply
chain and labor issues ease
Small business owners across the country identified inflation (78%)
and the U.S. political environment (67%) as their primary concerns
for next year, followed by interest rates (65%), commodities prices
(63%), and concerns over a recession (60%).
Business owners are experiencing some relief from issues that
have impacted their supply chains, with 68% indicating that supply
chain issues are still affecting their business, a notable drop
from 80% in Fall 2022. Employers are also starting to find it
easier to attract and retain talent, with 46% reporting that labor
shortages are currently impacting their business, down
significantly from 61% in Fall 2022.
Women & minority entrepreneurs continue to experience
barriers accessing capital
31% of women business owners said they do not think they will ever
have equal access to capital to start a business; 35% of Black
business owners, 20% of Hispanic-Latino business owners and 20% of
AAPI business owners said the same. Minority business owners also
reported challenges accessing capital, with 44% of Black, 43%
Hispanic-Latino, and 31% of AAPI business owners reporting they've
personally faced challenges.
Women business owners project steady growth, despite heavier
caregiving burden
Women business owners report an overall
positive business outlook, with 63% expecting revenue growth and
45% planning to expand their business over the next 12 months.
Additionally, 74% of women business owners plan to obtain funding
and 32% plan to hire more employees.
On top of juggling business responsibilities, women business
owners are more likely to take on caregiving roles compared to
their male counterparts (34% of women vs. 23% of men). Many also
reported modifying their daily routines around caregiving, even
planning their business schedule around caregiving duties (32%) and
taking time off from work due to these responsibilities (31%).
Hispanic-Latino business owners temper economic outlook,
while they aim to increase education
Revenue expectations
for Hispanic-Latino business owners have held steady since Fall
2022, as 91% believe their revenue will increase or stay the same
over the next year. However, their economic confidence has dropped
significantly since last fall, as 35% of Hispanic-Latino
entrepreneurs believe the national economy will improve (down from
45%) and 45% believe their local economy will improve (down from
52%).
84% of Hispanic-Latino business owners wish they had more
educational resources to enhance their small business knowledge and
77% are prioritizing investing in educational resources for their
employees, including online training programs (44%), on-site
training (43%) and mentoring (40%).
Black business owners see strong growth potential, embrace
new ways of working
Many Black entrepreneurs are optimistic about their revenue for the
year ahead, even with a slightly tempered economic outlook – with
86% foreseeing their revenue increasing in the next 12 months, up
from 72% in Fall 2022.
This revenue optimism is fueling hiring and expansion plans. 56%
of Black business owners plan to hire more employees over the next
12 months, up significantly from 44% last fall. Additionally,
expansion plans are up 6-percentage points this year, as 71% of
Black entrepreneurs report plans to grow their business. To
facilitate growth, 96% of Black business owners plan to obtain
financing for their business in the year ahead.
With their optimistic outlook, Black business owners also
continue to innovate in a changing business environment. Half of
Black entrepreneurs said they offer their employees hybrid work
options and are seeing positive impacts on hiring and retention. Of
those who offer hybrid work, 54% say it has made it easier to hire
employees, and 53% have seen increased employee retention.
AAPI business owners plan to seek financing, revenue
expectations down slightly
Business growth, investment and expansion are top-of-mind for AAPI
business owners this year. A majority (78%) reported they plan to
obtain financing for their business, and 45% plan to expand their
business in the year ahead. Among AAPI entrepreneurs seeking
financing, 59% plan to use a business credit card to finance their
business.
When asked about their business outlook for the coming 12
months, AAPI business owners have tempered their overall outlook,
including revenue expectations that are down eight percentage
points since last fall.
Finally, AAPI entrepreneurs lag behind when looking at work-life
balance, as only 36% say their work-life balance is better as a
small business owner, compared with 49% of non-AAPI business
owners.
For an in-depth look at the insights of the nation's small
business owners, please read the full 2023 Women & Minority
Business Owner Spotlight.
Bank of America 2023 Women & Minority Business Owner
Spotlight
Ipsos conducted the Bank of America 2023 Women & Minority
Business Owner Spotlight survey online between August 10 and August 27, 2023 using a
pre-recruited online sample of small business owners. Ipsos
contacted a national sample of 1,079 small business owners in
the United States with annual
revenue between $100,000 and
$4,999,999 and employing between two
and 99 employees, as well as 292 interviews of Hispanic-Latino
small business owners, 308 interviews of Black small business
owners and 131 interviews of Asian American small business owners.
The final results for the national and demographic segments were
weighted to national benchmark standards for size, revenue and
region.
Bank of America
Bank 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 68 million consumer and small business clients with
approximately 3,900 retail financial centers, approximately
15,000 ATMs (automated teller machines) and award-winning
digital banking with approximately 57 million verified digital
users. Bank of America is a global leader in wealth management,
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 4 million small business
households through a suite of innovative, easy-to-use online
products and services. The company serves clients through
operations across the United
States, its territories and more than 35 countries. Bank of
America Corporation stock is listed on the New York Stock Exchange
(NYSE: BAC).
Reporters May Contact:
Don
Vecchiarello, Bank of America
Phone: 1.980.387.4899
don.vecchiarello@bofa.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/67-of-small-business-owners-foresee-revenue-increasing-over-the-next-year-supply-chain-and-labor-issues-easing-301946933.html
SOURCE Bank of America Corporation