Metro New York Small Business Owners Continue to Be Optimistic About 2013, Yet Concerns About the Economy Remain
Bank of America Fall 2012 Small Business Owner Report Examines Relationships With Large Businesses, Impact of Black Friday and the Significance of Local Communities
NEW YORK--(BUSINESS WIRE)-- Bank of America today released the fall 2012 Small Business Owner Report, a semi-annual study exploring the concerns, aspirations and perspectives of small business owners across the country. The survey, which includes an oversampling of small business owners across the metro New York City market, found the majority of metro New York's small business owners are planning on sustaining or growing their business over the next 12 months. Specifically, more than one-quarter (27 percent) plan on hiring more employees, while 52 percent expect their staffing needs will remain consistent.
In addition, more than half (51 percent) of the metro New York small business owners surveyed anticipated that revenue will increase in 2013, while 13 percent expect revenue to decline. However, this optimism is tempered by their views on the economy, with only 35 percent of metro New York small business owners confident that their local economy will improve over the next 12 months. Respondents were even less confident in the national (34 percent) and global economies (24 percent) improving in that same period.
The significance of metro New York's local economy
The study also shows that the local economy has the greatest impact on metro New York small business owners. Nearly two-thirds (65 percent) reported that the majority of their customers come from the local community, compared to 25 percent who indicated that customers come primarily from outside their local community but within the U.S. Only 4 percent indicated that the majority of their customers come from outside the U.S.
Additionally, 71 percent of metro New York's small business owners believe that the local economy plays a significant role in their business. Comparatively, 54 percent believe the national economy plays a significant role, and only 36 percent believe the global economy is significant to their business.
"It's a very difficult time right now for small business owners in metro New York City, and the tri-state area, in the wake of Hurricane Sandy. We know it will take some time and a lot of hard work to get back to business and get the local economy moving again," said Tim McDonald, Small Business Banking manager, Bank of America. "But despite the challenges many small businesses now face, I have been inspired by their optimism, tough-as-nails determination, and sense of community."
Black Friday has little impact on bottom line
Metro New York small business owners see little to no benefit from Black Friday and Cyber Monday. Ninety percent of metro New York small business owners say that Black Friday has either a minor or no impact on their business's bottom line, and 82 percent believe Cyber Monday is overhyped and has no significance to their bottom line.
Larger businesses: asset or adversary?
When questioned about their relationship to larger businesses, less than one in seven (14 percent) respondents views larger businesses as their biggest competitors. Seventy-two percent indicate they have larger businesses as customers, and 33 percent say that larger businesses motivate them to become better small business owners.
From a competitive perspective, metro New York small business owners cite a number of factors that drive customers to choose them over larger businesses, including customer service (68 percent), reliability/trust, and quality (both 62 percent). More than one in three (36 percent) believe customers choose them because they are local.
Metro New York small business owners are well capitalized heading into 2013
Sixty-seven percent of respondents believe they have enough access to capital to effectively run their business, and only 20 percent said that they applied for a business loan over the past year. Despite their optimistic views for growth in the coming year, 80 percent do not intend to apply for a business loan in 2013.
Who small business owners turn to for financial guidance
Only 28 percent of metro New York small business owners describe themselves as "very savvy" regarding financial matters. When seeking advice, they tap into a broad network for help, including accountants/bookkeepers (85 percent), financial advisors (50 percent) and other small business owners and friends/family (both 45 percent).
"Increasingly, small business owners are seeking personalized counsel and expertise from their bank to help them navigate a challenging economy," said Christopher Kaminski, Small Business Banking manager, Bank of America. "Through the hiring of 1,000 small business bankers across the nation, including more than 90 right here in the tri-state area, we're able to deliver this service to our customers, so they can spend less time focused on their banking needs and more time focused on the other needs of their small business."
Bank of America has continued to actively lend to small businesses across the U.S. and the state of metro New York. Through September, Bank of America has extended $1.28 billion in credit across metro New York state to small businesses - this includes $390.6 million in new originations, which has helped enable Bank of America to exceed its national small business lending pledge to the White House and the U.S. Small Business Administration.
For a complete, in-depth look at the insights of the nation's small business owners, please read the entire fall 2012 Small Business Owner Report and for additional metro New York-based insights, download the Small Business Owner Report metro New York infographic.
About the Bank of America Small Business Owner Report
Braun Research conducted the Bank of America Small Business Owner Report survey by phone between Sept. 9 and Oct. 7, 2012 on behalf of Bank of America. Braun contacted a nationally representative sample of 1,003 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 also surveyed in 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, and +/- 5.7 percent for the oversampled markets, with both reported at a 95 percent confidence level.
Bank of America
Bank of America is one of the world's largest 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 more than 55 million consumer and small business relationships with approximately 5,500 retail banking offices and approximately 16,300 ATMs and award-winning online banking with 30 million active 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 more than 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYS: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
For more Bank of America news, visit the Bank of America newsroom.
The Braun Research survey results conducted on behalf 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.
© 2012 Bank of America Corporation. All rights reserved.
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T.J. Crawford, Bank of America, 1.646.855.3301
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