The 30 million small businesses in the U.S. are the backbone of our economy and should remain a top priority at all times. Challenged by factors from big company competition to the new Department of Labor (DOL) overtime eligibility rule, small businesses often face the threat of being eradicated.
Small Business Saturday is fast approaching and we need to recognize the importance of these businesses. Bank of America’s Small Business Ownership Report for Fall 2016 illustrates the state of American small business owners.
Small business owners receive help from family, friends and the community
- 38 percent have received financial gifts or loans from family or friends for their business
- 53 percent lean on family members to help fulfill at least one important business role, such as partner, co-owners, employee or strategic advisor
- 62 percent report that residents in their community “actively support local businesses,” and 47 percent affirmed their local community plays an important role in their business success
Small business owners’ outlook on economy, growth, revenue and hiring
- 52 percent of small business owners expect increased revenues; 25 percent are poised to hire more employees within a year
- 55 percent expect to grow their business over the next five years
- 37 percent “expressed confidence” about local economy improvement over the next 12 months; 31 percent felt the same about the national economy
- 75 percent “reported concern” regarding the effect of health care costs; 64 percent expressed concern about the effectiveness of the U.S. government
Small business capital
- When starting their businesses, the main sources of capital for small business owners were: personal savings (76 percent), personal credit cards (36 percent), bank loans (25 percent) and family and friends (21 percent)
- Once the business became established, business owners relied on: bank loans (43 percent) and personal credit cards (42 percent), but only 7 percent rely on support from family and friends
Higher expected revenues, fewer holiday perks
- 68 percent of small business owners predict achieving year-end revenue goals
- 51 percent of business owners in the retail, consumer products and wholesale industries “expect to generate more holiday revenue this year than they did in 2015”
- 72 percent of entrepreneurs will offer at least one perk to employees this holiday season; to offer these benefits, 37 percent report having to make “some kind of sacrifice”
Small business owners work tremendously hard; when their businesses fail our economy and entrepreneurial communities are significantly affected. Remember to recognize the importance of these businesses and do you part to help your community thrive. Shop small!