Bank of America today released the fall 2012 Small Business Owner Report, a semi-annual study exploring the concerns, aspirations and perspectives of small business owners across the country. The survey, which includes an oversampling of small business owners across the Los Angeles market, found the majority of Los Angeles small business owners are planning on sustaining or growing their business over the next 12 months. Specifically, more than one-quarter (27 percent) plan on hiring more employees, while 59 percent expect their staffing needs will remain consistent.
In addition, more than half (54 percent) of the Los Angeles small business owners surveyed anticipate that revenue will increase in 2013, while only 9 percent expect revenue to decline. However, this optimism is tempered by their views on the economy, with only 34 percent of Los Angeles small business owners confident that their local economy will improve over the next 12 months. Respondents were even less confident in the national (30 percent) and global economies (19 percent) improving in that same period.
The significance of the Los Angeles local economy
The study also shows that the local economy has the greatest impact on Los Angeles small business owners. Three in five (62 percent) Los Angeles small business owners cite that the majority of their customers come from the local community, compared to 29 percent who indicated that their customers come primarily from outside the local community but within the U.S. Only 2 percent indicated that the majority of their customers come from outside the U.S.Additionally, 67 percent of Los Angeles’s small business owners believe that the local economy plays a significant role in their business. Comparatively, 59 percent believe the national economy plays a significant role, and only 31 percent believe the global economy is significant to their business. “The vitality of the Los Angeles economy directly depends on the success of our local small business community,” said Emily Shanks, Small Business Banker regional executive, West region at Bank of America. “As part of our ongoing commitment to small business owners, Bank of America will continue to provide locally relevant expertise to help them navigate through economic uncertainties while capitalizing on the abundant business opportunities that Los Angeles offers.”