CHARLOTTE, NC – Nearly four out of five (78%) small and mid-sized business owners anticipate revenue growth in the next 12 months. This level of confidence spans most business owners, with 76% of women, 82% of Hispanic-Latino, 84% of Black/African American and 83% of Asian American and Pacific Islander (AAPI) entrepreneurs anticipating revenue growth in the year ahead.
This is according to the 2024 Bank of America Women & Minority Business Owner Spotlight (PDF), published in partnership with Bank of America Institute. The survey of more than 2,000 small and mid-size business owners across the country explores sentiments about business outlook, access to capital, how they manage their employees, and how they interact with their community. This annual survey samples a general population of small and mid-sized business owners and includes specific insights into the perspectives of women, Hispanic-Latino, Black/African American and AAPI business owners.
“These businesses are the heart of the U.S. economy and business owners are expecting to increase their revenue in the coming year, despite continued concerns around inflation,” said Raul Anaya, president and co-head of Business Banking for Bank of America. “Many also plan to hire and invest in employee education, such as training and mentoring programs, as they prioritize their labor force and explore opportunities for growth.”
Confidence varies by business size
Business owners across all surveyed cohorts are cautiously optimistic that economies will improve over the next 12 months. Nationwide, 66% believe the local economy will improve, 60% believe the national economy will improve, and 57% believe the global economy will improve.
However, data suggests that smaller employers are less optimistic. Some 78% of mid-sized business owners[1] plan to expand and 61% plan to hire over the next year, while just 50% of small business owners[2] plan to expand and 39% plan to hire.
“Finding quality labor is one challenge facing many smaller firms, though employment growth is still strong, and our clients continue to be optimistic about staffing,” said Sharon Miller, president and co-head of Business Banking for Bank of America. “In the year ahead, they are looking to invest in their employees and utilize technology to bolster their hiring and improve client experiences.”
This divergence across business size aligns with Bank of America Institute’s September Small Business Checkpoint, which found lower confidence among smaller businesses compared to their larger counterparts. However, consistent with the survey finding that business owners are continuing to expand their businesses, the Small Business Checkpoint showed continued payroll growth and elevated hiring demand compared to 2019.
Beyond hiring concerns, business owners across the country identified inflation and the political environment as top issues.
Hispanic-Latino business owners express confidence
Hispanic-Latino business owners report strong confidence in the economy. Of these business owners, 76% expect the national economy to improve over the next year and plan to obtain funding (94%) and hire more employees (64%). Some 78% plan to expand their businesses over the coming year.
Esmeralda Hernandez, founder and CEO of Los Angeles-based cosmetics company Beauty Creations said that conditions for her business reflect these sentiments. “We continued to scale across key growth measures this year – revenue, hiring, client growth and physical expansion – and remain confident this momentum will continue into the new year. Despite some lingering uncertainty about inflationary costs and other economic pressures, we feel strongly about our growth projections. It’s a good time for our business overall,” she said.
Labor challenges are also top of mind for Hispanic-Latino business owners, with 81% of owners surveyed saying they are currently impacting their business. As a result of these challenges, they are:
- Raising wages to attract more competitive talent (33%)
- Working more hours personally due to staffing shortages (33%)
To learn more about the opportunities and struggles for Hispanic-Latino business owners, see our 2024 Hispanic-Latino Business Owner Spotlight (PDF).
About 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 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 58 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).
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This article was originally published on diversitycomm.net.