Despite lingering concerns about health care costs as well as the functionality of government, most small business owners are optimistic about 2015.
A recent survey released by Bank of America found that most small business owners are confident in national and local economies, and expect to see their revenues increase next year. The semi-annual Bank of America Small Business Owner Report found that 62 percent of small business owners expect to see their earnings go up over the next 12 months. Additionally, even more owners, 67 percent, noted that they plan on expanding their businesses within the next five years.
The younger the business owner, the more confident
For example, small business owners these days seem bullish on the notion of hiring.
"The overall consensus is they're [small business owners] very optimistic about hiring," said Cynthia Nevels, a small business consultant and advisor to 39 in Goldman Sach's 10,000 Small Businesses program, according to The Dallas Morning News. "There's a tremendous need. The operating lead time is over. They need people now to meet their financial and growth goals."
Plans for growth are in line with the confidence new small business owners displayed in their responses to the survey. The youngest baby boomers are turning 50 this year, and many millennials are taking over where they left off as small business managers – and they are confident. Bank of America's survey made it a point to look at the young new generation of business owners in its survey, and compare and contrast them with outgoing baby boomers.
"Whether they are taking over their parents' companies or embarking on their own venture, millennials are making their mark and doing it in their own unique way," a press release from the bank read.
While only 57 percent of the boomers and 73 percent of Gen-Xers plan on expanding their businesses over the next five years, 87 percent of millennials noted that they intend to grow their businesses through the next half-decade. In addition, more millennials expect to see growth through the next 12 months than their Gen-X or baby boomer counterparts.
Possibly because of the youthful skew in small business ownership following the retirement of baby boomers, the vast majority of business owners are open to the adoption of new technology, the Bank of America survey found. In all three generational categories, the majority gave themselves either an "A" or "B" grade on their use of technology – 58 percent of baby boomers rated themselves thusly compared with 85 percent of millennials.
The technology adoption rate will likely only increase as more millennials take over businesses, since the majority of them – as well as Gen-Xers – indicated that they would not be able to run their businesses without a smart phone.
The Dallas Morning News reported that Federal lending should increase over the next year, which will likely be a boon to small business owners in search of funds to expand their operations. If you feel now is the time to review your financial plan in preparation for expansion next year, don't hesitate to consult an expert.