SMB Owner Confidence At A Three-Year High

By Christine Kern, contributing writer

Small business owners are demonstrating confidence in the economy at the highest levels in three years, according to Bank of America’s annual Small Business Owner Report.

In a letter from Robb Hilson, small business executive at Bank of America, that introduces the report, he states, “Small business owners not only anticipate a healthier economy, but have also report plans to grow their businesses and to hire more employees over the next 12 months, all at a much higher rate than in recent years.”

Bank of America’s study found that 62 percent of small business owners are confident in the local economy improving — which is a 12 percent increase over 2014. In addition, 56 percent of small business owners are confident that the national economy will improve and 45 percent are confident the global economy will improve.

According to the report, tech investment is topping the list when it comes to priorities for SMBs. It found that 71 percent of small business owners are now making tech upgrades at least once per year; and 54 percent of small business owners surveyed are now using tech to accept mobile payments, as well as to connect with employees (50 percent), to track inventory (45 percent), to optimize a website (41 percent), or to create an app for customers (23 percent).

The survey reveals that cybersecurity is an area of concern and investment. Of those surveyed, 12 percent have experience a cybersecurity breach, and 66 percent say they are prepared for a cyberattack.

The report, based on a semi-annual survey of 1,000 small business owners across the country, also reveals that 72 percent expect their revenue to increase in the next 12 months, compared with 62 percent a year ago.