Description
Nearly four out of five (78%) small and medium-sized business (SMB) owners in the U.S. expect revenue growth over the next 12 months. This level of confidence spans most business owners: 76% of women, 82% of Hispanic/Latino entrepreneurs, 84% of Black/African American entrepreneurs, and 83% of Asian American and Pacific Islander (AAPI) business owners anticipate revenue growth in the coming year.
This is according to Bank of America’s Women & Minority Business Owner Spotlight 2024, published in partnership with the Bank of America Institute. The survey of more than 2,000 SMB owners nationwide explores business outlooks, access to capital, employee management, and community engagement. This annual survey covers the broader SMB population and includes insights from women, Hispanic/Latino, Black/African American, and AAPI business owners.
“These businesses are the heart of the American economy, and business owners expect to grow their revenues next year despite ongoing concerns about inflation,” said Raul Anaya, President and Co-Head of Business Banking at Bank of America. “Many also plan to hire and invest in employee development, such as training and mentorship programs, as they prioritize their workforce and explore growth opportunities.”
Confidence Varies by Business Size
Business owners across all surveyed groups are cautiously optimistic about economic improvement over the next 12 months. Nationwide, 66% believe the local economy will improve, 60% expect improvement in the national economy, and 57% foresee improvement in the global economy.
However, the data shows that smaller employers are less optimistic. About 78% of medium-sized business owners plan to expand, and 61% plan to hire in the next year, while only 50% of small business owners plan to expand and 39% plan to hire.
“Finding quality talent is one of the challenges many smaller companies face, although employment growth remains strong and our clients are still optimistic about hiring,” said Sharon Miller, President and Co-Head of Business Banking at Bank of America. “Next year, they plan to invest in their employees and leverage technology to improve hiring efficiency and customer service quality.”
This difference in business size aligns with findings from Bank of America’s September Institute’s Small Business Checkpoint report, which showed lower confidence among small businesses compared to their larger counterparts. However, consistent with the survey results, business owners continue to expand, with the Small Business Checkpoint showing ongoing wage growth and increased hiring demand compared to 2019.
In addition to hiring challenges, U.S. business owners cited inflation and the political climate as their top concerns.
