bank of america
October 9, 2024
CHARLOTTE, N.C. – Nearly four in five (78%) small business owners expect their revenue to increase over the next 12 months. This level of trust is widespread among most business owners, including 76% of women, 82% of Hispanic/Latinos, 84% of Black/African Americans, and Asian Americans and Pacific Islanders (AAPI). of entrepreneurs expect revenue to increase in the coming year.
This is according to the 2024 Bank of America Women and Minority Business Leaders Spotlight, published in partnership with the Bank of America Research Institute. The survey of more than 2,000 small business owners nationwide explores their feelings about their business prospects, access to capital, how they manage their employees, how they engage with their communities, and more. . This annual survey targets the general population of small business owners and includes specific insights into the perspectives of women, Hispanic/Latino, Black/African American, and AAPI business owners.
“These companies are at the heart of the U.S. economy, and despite continued concerns around inflation, business leaders are looking forward to the next year,” said Raul Anaya, president and co-head of business banking at Bank of America. We look forward to an increase in revenue.” “Many companies also plan to hire and invest in employee education, such as training and mentorship programs, to prioritize their workforce and explore opportunities for growth.”
Executives across all cohorts surveyed are cautiously optimistic that the economy will improve over the next 12 months. Nationally, 66% believe the local economy will improve, 60% believe the national economy will improve, and 57% believe the global economy will improve.
However, the data shows that smaller employers are less optimistic. Approximately 78% of small business owners plan to expand their business in the next year and 61% plan to hire, while only 50% of small business owners plan to expand their business and 39% plan to hire. Planning to hire.
“While job growth remains strong and our customers remain optimistic about staffing, many small businesses are facing challenges,” said Sharon Miller, president and co-head of business banking at Bank of America. One of the challenges we face is securing a high-quality workforce.” “In the year ahead, they want to invest in their employees and leverage technology to enhance hiring and improve the customer experience.”
This disparity between company sizes is consistent with the Bank of America Research Institute’s September Small Business Checkpoint, which found that small companies have lower levels of trust than larger companies. However, consistent with our findings that business owners continue to expand their operations, the Small Business Checkpoint shows continued salary increases and increased demand for employment compared to 2019. Ta.
Beyond employment concerns, business owners across the country identified inflation and the political environment as their biggest issues.
More than half (57%) of women business owners plan to expand their business over the next 12 months. Their expansion strategies include:
Grow your customer base (65%) Build your online presence (48%) Use professional services (35%)
Even with business expansion goals in mind, 54% of women business owners have increased the priority of work-life balance in the past year. Women assess their work-life balance by whether they have time for personal responsibilities (71%) and whether they feel they have enough energy to accomplish everything they want to do (62%) ) is measured. As they balance life priorities with business needs, most women feel they have the support they need to grow their businesses.
Hispanic-Latino business owners report strong confidence in the economy. Of these business owners, 76% expect the domestic economy to improve over the next year and plan to raise capital (94%) and hire employees (64%). Approximately 78% plan to expand their business over the next year.
Esmeralda Hernandez, founder and CEO of Los Angeles-based cosmetics company Beauty Creations, said the state of her business reflects that sentiment. “We have continued to expand our key growth metrics this year, including revenue, employment, customer growth and physical expansion, and we are confident that this momentum will continue into the new year. “While certainties remain, we have strong confidence in our growth forecasts. These are good times for our overall business,” she said.
Labor issues are also a top concern for Hispanic and Latino business owners, with 81% of business owners surveyed saying it is currently impacting their business. As a result of these challenges:
Increase wages to attract more competitive talent (33%) Increase individual working hours due to talent shortage (33%)
To learn more about the opportunities and challenges for Hispanic-Latino business owners, check out our 2024 Hispanic-Latino Business Owner Spotlight.
Black/African American business owners are optimistic about success in the year ahead, reporting strong business and economic prospects. Over the next year, 77% plan to expand their business and 94% plan to raise capital for their business.
Black/African American entrepreneurs prioritize personalized customer interactions, with 70% noting the importance of this strategy for attracting and retaining customers. 92% of those surveyed are also adjusting their marketing strategies and approaches, including:
Increase your social media presence (54%) Offer personalized deals and discounts to individual customers (45%)
AAPI business owners also have high hopes for economic growth and success in the coming year.
71% believe the national economy will improve 70% believe the local economy will improve 73% plan to expand their business this year
AAPI business owners are also seeking capital and making plans to improve workforce stability over the coming year. 60% plan to hire additional employees, and many are leveraging technology and AI tools to aid recruitment efforts.
91% of AAPI business owners report using AI as an approach to staffing in the past year, nearly 30 percentage points higher than non-AAPI business owners.
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