DFW entrepreneurs appear optimistic heading into 2020, according a Bank of America economic snapshot.
Ninety-four percent of the 300 small business owners in the survey said they expect year-over-year growth, the bank said in its Bank of America Business Advantage Fall 2019 Small Business Owner Snapshot. The bank conducts the survey bi-annual study the bank conducts in 10 major metro areas, including the DFW area.
Other findings:
- 82% plan to expand this year, up from 80% in fall 2018;
- 78% expect their revenue to increase, up from 71 % in fall 2018;
- 39% plan to hire, down slightly from 41% in fall 2018;
- 18% intend to apply for a loan, same as the 18% in fall 2018.
The small business owners were increasingly optimistic about the local economy, but indicated they were more concerned about the national economy than they were a year earlier. “Access to capital is one of the top factors influencing (small business owner) confidence in the economy this fall,” the bank said.
Consumer spending is also a concern among DFW small business owners, the bank said. “Consumer spending is top-of-mind: One of the issues of greatest concern for Dallas-Fort Worth SBOs this fall is consumer spending. Concern rose significantly around consumer spending, compliance with government regulations and corporate tax rates since last fall.”
Among DFW respondents to the survey:
- 72% expect the local economy will improve over the next 12 months, up from 65% in spring 2019.
- 51% expect the national economy will improve over the next 12 months, compared to 54% from the spring.
- 93% said access to capital was a top factor shaping their projections;
- 92% said personal business performance was a top factor;
- 91% said interest rates was a top factor. Fifty five 5 said they were concerned by interest rates, same as in the spring survey.
- 61% were concerned about consumer spending.
- 50% were concerned by regulation, compared to 37% in the spring survey.
- 50% were concerned by corporate tax rates, compared to 41% in the spring survey.
- 60% were concerned by healthcare costs, down from 74% in the spring.
- 55% were concerned by the strength of the U.S. dollar, compared to 56% in the spring.
As far as business goals for DFW business owners in the new decade:
- 56% want to significantly increase revenue;
- 46% want to prioritize their business’ online/social media presence;
- 34% want to expand into new markets.
