Atlanta 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 Communities
ATLANTA--(BUSINESS WIRE)-- 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 Atlanta market, found the majority of Atlanta small business owners are planning on sustaining or growing their business over the next 12 months. Specifically, more than one-third (36 percent) plan to hire more employees, while 50 percent expect their staffing needs will remain consistent.
In addition, more than half (58 percent) of the Atlanta small business owners surveyed anticipate that revenue will increase in 2013, while only seven percent expect revenue to decline. However, this optimism is tempered by their views on the economy, with only 42 percent of Atlanta small business owners confident that their local economy will improve over the next 12 months. Respondents were even less confident in the national (41 percent) and global economies (30 percent) improving in that same period.
The significance of Atlanta's local economy
The study also shows that the local economy has the greatest impact on Atlanta small business owners. More than half (53 percent) reported that the majority of their customers come from their local community, compared to 36 percent who indicated that their customers come primarily from outside their local community but within the U.S. Only 3 percent indicated that the majority of their customers come from outside the U.S.
In addition, Atlanta's small business owners believe that the local and national economies play a significant role in their business (both 74 percent), followed by 46 percent who believe the global economy has a substantial impact.
"The success of our small business community in Atlanta and that of the local economy are very closely linked," said Felicia Lewis, Small Business Banker manager in Atlanta for Bank of America. "What small business owners need is expertise that is grounded for their local market and unique needs, and that's what Bank of America is committed to providing. We want small business owners to have the guidance necessary to grow and reach their business goals in 2013."
Black Friday has little impact on bottom line
Atlanta small business owners see little to no benefit from Black Friday and Cyber Monday. Eighty-nine percent of Atlanta small business owners say that Black Friday has either a minor or no impact on their business's bottom line, and 76 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, only one in four (25 percent) respondents views larger businesses as their biggest competitors. Seventy-nine percent indicate they have larger businesses as customers, and 29 percent say that larger businesses motivate them to become better small business owners.
From a competitive perspective, Atlanta small business owners cite a number of factors that drive customers to choose them over larger businesses, including customer service (81 percent), quality (72 percent) and reliability/trust (70 percent). More than one in three (35 percent) Atlanta small business owners believe their customers choose them because they are local.
Atlanta small business owners are well capitalized heading into 2013
Seventy-two percent of respondents believe they have enough access to capital to run their business effectively, and only 15 percent said that they applied for a business loan over the past year. Despite their optimistic views for growth in the coming year, 76 percent do not intend to apply for a business loan in 2013.
Who small business owners turn to for financial guidance
Forty percent of Atlanta 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 (71 percent), financial advisors (60 percent), their banker (50 percent) and other small business owners (48 percent).
"Atlanta small business owners are savvy, but continue to seek counsel on how to make their money work harder for them," said Steve Turner, Southeast region sales executive for Bank of America. "This is why Bank of America committed to hiring 1,000 small business bankers across the country, including 35 in the Atlanta region. Our small business bankers work with customers to provide advice based on a deeper understanding of their business, so they can focus more on things like innovation, quality service and customer loyalty."
Bank of America has continued to actively lend to small businesses across the U.S. and Georgia. Through September, Bank of America has extended $513.4 million in credit across Georgia to small businesses - this includes $209.2 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 Atlanta-based insights, download the Small Business Owner Report Atlanta 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 (NYS: 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 opinion.
© 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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