67% of Small Business Owners Foresee Revenue Increasing Over the Next Year; Supply Chain and Labor I

PRNewswire-HISPANIC PR WIRE/ -- Small business owners nationwide continue to be bullish on their own business outlook, as 67% anticipate revenue growth over the next 12 months, despite the ongoing impacts of inflation and high operating costs, according to Bank of America's 2023 Women & Minority Business Owner Spotlight.

The survey of more than 1,000 small business owners across the country explores the outlook of all entrepreneurs, with specific insights on the perspectives of women, Black, Hispanic-Latino, and Asian American and Pacific Islander (AAPI) business owners around access to capital, business outlook, work-life balance and community support. Notably, the new study found:

Economic confidence has dropped since last fall, as 34% of entrepreneurs believe the national economy will improve over the next 12 months (down from 44%), and 41% believe their local economy will improve (down from 48%).
77% of small business owners plan to obtain funding for their business, down from 83% in Fall 2022.
51% of women business owners believe they currently have equal access to capital, up from 48% in Fall 2022.
Hispanic-Latino business owners' revenue expectations held steady despite a notable drop in economic confidence, with 91% believing their revenue will increase or stay the same over the coming year.
Over the next 12 months, 56% of Black business owners plan to hire more employees, up significantly from 44% in Fall 2022.
89% of AAPI business owners think their revenue will increase or stay the same over the next year.

"While facing multiple obstacles and challenges over the past year, today's entrepreneurs continue to persevere and move forward with their growth and expansion plans," said Sharon Miller, President, Small Business, Head of Specialty Banking and Lending at Bank of America. "Our newest report illustrates that despite a changing business landscape, women and minority small business owners continue to forge their own pathways to success while remaining pillars in their local economies."

Inflation concerns top-of-mind for business owners, as supply chain and labor issues ease Small business owners across the country identified inflation (78%) and the U.S. political environment (67%) as their primary concerns for next year, followed by interest rates (65%), commodities prices (63%), and concerns over a recession (60%).

Business owners are experiencing some relief from issues that have impacted their supply chains, with 68% indicating that supply chain issues are still affecting their business, a notable drop from 80% in Fall 2022. Employers are also starting to find it easier to attract and retain talent, with 46% reporting that labor shortages are currently impacting their business, down significantly from 61% in Fall 2022.

Women & minority entrepreneurs continue to experience barriers accessing capital 31% of women business owners said they do not think they will ever have equal access to capital to start a business; 35% of Black business owners, 20% of Hispanic-Latino business owners and 20% of AAPI business owners said the same. Minority business owners also reported challenges accessing capital, with 44% of Black, 43% Hispanic-Latino, and 31% of AAPI business owners reporting they've personally faced challenges.

Women business owners project steady growth, despite heavier caregiving burden Women business owners report an overall positive business outlook, with 63% expecting revenue growth and 45% planning to expand their business over the next 12 months. Additionally, 74% of women business owners plan to obtain funding and 32% plan to hire more employees.

On top of juggling business responsibilities, women business owners are more likely to take on caregiving roles compared to their male counterparts (34% of women vs. 23% of men). Many also reported modifying their daily routines around caregiving, even planning their business schedule around caregiving duties (32%) and taking time off from work due to these responsibilities (31%).

Hispanic-Latino business owners temper economic outlook, while they aim to increase education Revenue expectations for Hispanic-Latino business owners have held steady since Fall 2022, as 91% believe their revenue will increase or stay the same over the next year. However, their economic confidence has dropped significantly since last fall, as 35% of Hispanic-Latino entrepreneurs believe the national economy will improve (down from 45%) and 45% believe their local economy will improve (down from 52%).

84% of Hispanic-Latino business owners wish they had more educational resources to enhance their small business knowledge and 77% are prioritizing investing in educational resources for their employees, including online training programs (44%), on-site training (43%) and mentoring (40%).

Black business owners see strong growth potential, embrace new ways of working Many Black entrepreneurs are optimistic about their revenue for the year ahead, even with a slightly tempered economic outlook – with 86% foreseeing their revenue increasing in the next 12 months, up from 72% in Fall 2022.

This revenue optimism is fueling hiring and expansion plans. 56% of Black business owners plan to hire more employees over the next 12 months, up significantly from 44% last fall. Additionally, expansion plans are up 6-percentage points this year, as 71% of Black entrepreneurs report plans to grow their business. To facilitate growth, 96% of Black business owners plan to obtain financing for their business in the year ahead.

With their optimistic outlook, Black business owners also continue to innovate in a changing business environment. Half of Black entrepreneurs said they offer their employees hybrid work options and are seeing positive impacts on hiring and retention. Of those who offer hybrid work, 54% say it has made it easier to hire employees, and 53% have seen increased employee retention.

AAPI business owners plan to seek financing, revenue expectations down slightly Business growth, investment and expansion are top-of-mind for AAPI business owners this year. A majority (78%) reported they plan to obtain financing for their business, and 45% plan to expand their business in the year ahead. Among AAPI entrepreneurs seeking financing, 59% plan to use a business credit card to finance their business.

When asked about their business outlook for the coming 12 months, AAPI business owners have tempered their overall outlook, including revenue expectations that are down eight percentage points since last fall.

Finally, AAPI entrepreneurs lag behind when looking at work-life balance, as only 36% say their work-life balance is better as a small business owner, compared with 49% of non-AAPI business owners.

For an in-depth look at the insights of the nation's small business owners, please read the full 2023 Women & Minority Business Owner Spotlight.

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La Generación Z se prepara para ajustar sus finanzas y el 73% modifica su estilo de vida debido a la inflación

La encuesta de Mejores Hábitos Financieros de Bank of America de 2023 revela cambios en las prioridades de gasto de los jóvenes estadounidenses

CHARLOTTE, N.C., 13 de octubre de 2023 /PRNewswire-HISPANIC PR WIRE/ -- Actualmente, el 85% de la Generación Z afirma afrontar uno o más retos para lograr el éxito financiero. La lista comienza con el aumento del costo de vida, mencionado por el 53% de los encuestados en el estudio anual de Bank of America (PDF). La nueva encuesta proporciona información oportuna sobre los enfoques que está adoptando esta generación más joven para ganar su posición financiera en el entorno económico actual.

Durante el año pasado, casi tres de cada cuatro (73%) miembros de la Generación Z afirmó haber cambiado sus hábitos de gasto debido al aumento de los precios. Sus cambios en el estilo de vida han incluido cocinar en casa con más frecuencia en lugar de salir a comer (43%), gastar menos en ropa (40%) y limitar las compras de supermercado a lo esencial (33%). Casi todos los que adoptaron estos nuevos hábitos de gasto planean mantenerlos durante el próximo año (90%, 79% y 80%, respectivamente), incluso si la inflación y la presión de los precios disminuyen.

Según el Bank of America Institute, en el último año se abrió una brecha significativa entre el gasto de las generaciones más jóvenes y las de mayor edad. De acuerdo con datos de Bank of America sobre el gasto con tarjetas de crédito y de débito por hogar, el gasto de la Generación Z disminuyó más del 2% entre mayo de 2022 y mayo de 2023, mientras que el gasto de la Generación de los Boomers aumentó un 2.5% y un 5% el de la Generación Tradicionalista.

"Esta generación más joven ha demostrado tener fortaleza y ser ingeniosa a la hora de administrar su dinero en un entorno desafiante y adaptar sus estilos de vida según sea necesario", dijo Holly O'Neill, presidenta de banca minorista de Bank of America. "Seguimos ofreciendo una gran cantidad de recursos y la orientación que necesitan mientras trabajan para lograr la independencia financiera y crear un patrimonio".

Información adicional: salud financiera

Durante el último año, casi cuatro de cada 10 miembros de la Generación Z (37%) afirma haber experimentado un contratiempo financiero, como la disminución de sus ahorros o una deuda adicional, lo que dio como resultado que el 27% pidiera dinero prestado a amigos o familiares. La dependencia de amigos y familiares probablemente se deba en parte al hecho de que más de la mitad (56%) dice que no cuenta con suficientes ahorros para cubrir tres meses de gastos en caso de una emergencia.
Si bien un poco más de la mitad de la Generación Z (52%) se siente encaminada para alcanzar sus metas financieras, menos de la mitad (48%) es total o mayoritariamente independiente desde el punto de vista financiero.
Sin embargo, la Generación Z todavía se siente capaz de manejar las actividades financieras cotidianas. La mayoría confía en su capacidad para administrar los gastos diarios (69%), llevar un presupuesto (70%) y manejar el crédito (67%). No obstante, carecen de confianza en el manejo de tareas complejas de planificación financiera, ya que son menos los que se sienten preparados para ahorrar para la jubilación (45%) o invertir en la bolsa de valores (29%).
Si bien las mujeres de la Generación Z siguen ahorrando más que los hombres de la misma generación, son menos las mujeres de esta generación que están invirtiendo (11% frente al 18% de los hombres) y que se sienten preparadas para ahorrar para la jubilación (40% frente al 51% de los hombres).
La confianza en la economía entre la Generación Z está disminuyendo. Durante el próximo año, solo el 24% confía en que la economía mejore, en comparación con el 41% en 2021, y el 32% confía en que el mercado laboral mejore, en comparación con el 46% en 2021.

Prioridades principales

De cara al 2024, las prioridades de la Generación Z incluyen mejorar su formación (36%), avanzar en su carrera profesional o aumentar su salario (31%) y conseguir un nuevo empleo (31%).
Este año, muchos de los miembros de la Generación Z comenzaron un nuevo trabajo o aceptaron un nuevo puesto (33%), negociaron un aumento (22%) o solicitaron un empleo en una nueva área (14%).
Aquellos que comenzaron un nuevo empleo se vieron motivados por salarios más altos (36%), mejores perspectivas a largo plazo (32%) y vieron el desempeño de un nuevo rol como un paso adelante (32%).

Para obtener más detalles, consulte el informe completo (PDF).