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
NEW YORK -- November 15, 2012
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
“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
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 (NYSE: 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
© 2012 Bank of America Corporation. All rights reserved.
Reporters May Contact:
T.J. Crawford, Bank of America, 1.646.855.3301
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