More small business owners in metro New York (68 percent) are still recovering from the recession than any other market, according to the spring 2015 Bank of America Small Business Owner Report, a semi-annual study exploring the concerns, aspirations and perspectives of small business owners in metro New York and around the country. This is more than the national average (64 percent) and all other markets, including Miami (61 percent), Los Angeles (60 percent) and Chicago (59 percent).

The report reveals that metro New York entrepreneurs are working hard to combat the impact of the recession. Almost nine out of 10 metro local small business owners (86 percent) work more than 40 hours a week. They also make a lot of financial sacrifices for their businesses:

  • Nearly three-fourths (71 percent) would delay or reduce their own compensation if forced to make ends meet in their business (67 percent nationally).
  • Forty-three percent carried business costs on a personal credit card (35 percent nationally).
  • Thirty-seven percent have delayed or forgone compensation for up to two weeks (32 percent nationally).

“Small business owners in the metro New York area are resilient individuals who have made a lot of personal sacrifices for the sake of their businesses, customers and employees,” said Michael Angelone, metro New York small business banker manager at Bank of America. “Our small business bankers are committed to working with these hardworking entrepreneurs to support them and to help them succeed.”

In spite of lingering concerns, metro New York small business owners are still optimistic about their business in the years ahead; nearly two-thirds (64 percent) plan to grow their business in the next five years. In addition, 59 percent anticipate revenue growth in the coming year.

Nearly half of metro New York entrepreneurs (44 percent) say they expect to hire more employees this year, but many (48 percent) say it’s difficult to find qualified staff. Metro New York entrepreneurs say the top challenges in finding qualified staff are attributed to a skills gap (61 percent) and high salary demands (48 percent).

Metro New York small business owners show appreciation for customers, embrace technology

The majority of metro New York small business owners (60 percent) say that establishing relationships with customers and clients is the primary driver of repeat business, and they find many ways to show their appreciation, including:

  • Monetary rewards, such as discounts or free upgrades (33 percent).
  • Social media promotions (28 percent).
  • Personalized gifts (28 percent).
  • Free products or services for their first visit (28 percent).

The report also found that 70 percent of metro New York small business owners have become more technologically advanced to meet customer demands. Forty percent say that social media and online review sites have provided informative feedback that has prompted a change in their businesses, and 36 percent experienced an uptick in customers.

Local small business owners remain concerned about health care costs, but less so about other issues

The spring 2015 Small Business Owner Report found that metro New York small business owners are increasingly concerned about the impact of health care costs compared to findings in the fall 2014 Small Business Owner Report (73 percent versus 65 percent six months ago). However, they are significantly less worried about many other issues than they were six months ago, including the effectiveness of U.S. government leaders (63 percent versus 81 percent), the strength of the U.S. dollar (50 percent versus 69 percent), interest rates (50 percent versus 62 percent) and the global stock market (42 percent versus 52 percent).

When it comes to government policies, metro New York small business owners say the greatest potential for a positive impact on their business could come from expanded tax breaks for automatically enrolling employees into retirement savings accounts (33 percent) and incentives to keep jobs on U.S. soil (29 percent). Conversely, the policies that would have the most negative impact on their business would be required health care plans for employees (36 percent) and mandated sick leave for employees (32 percent).

Local entrepreneurs feel supported by their local community, but less so by policymakers

Metro New York small business owners overwhelmingly support other small businesses in the community by shopping small. Sixty-nine percent of metro New York small business owners gave themselves an “A” or “B” grade for shopping at other local small businesses. They also rate their local community high in shopping small, as 63 percent handed out an “A” or “B” grade when assessing how well metro New York residents frequent small businesses.

While many small business owners feel supported by their local community, only 28 percent of metro New York entrepreneurs believe that policymakers appreciate small business owners.

For an in-depth look at the attributes of the nation’s small business owners, read the full spring 2015 Bank of America Small Business Owner Report, and for additional metro New York-based insights, download the Small Business Owner Report metro New York infographic here.

About the Bank of America Small Business Owner Report
Braun Research conducted the Bank of America Small Business Owner Report survey by phone, from March 4, 2015, through March 27, 2015, on behalf of Bank of America. Braun contacted a nationally-representative sample of 1,000 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 each of 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; the margin of error for the oversampled markets is +/ 5.7 percent, reported at a 95 percent confidence level.

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.

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 approximately 48 million consumer and small business relationships with approximately 4,800 retail financial centers and approximately 15,900 ATMs and award-winning online banking with 31 million active users and approximately 17 million mobile 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 approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

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