According to Bank of America’s (BofA) inaugural Midsize Business Owners Report, despite economic challenges, 75% of midsize business owners in the US expect their revenue to increase and 71% plan to hire in the next 12 months.
The study is based on a survey of more than 300 midsize business owners (MSBOs), with annual revenues of $5 million to $50 million, and focuses on their business and economic prospects.
“The strength of midsize businesses is essential to the health of the US economy”, commented Raúl Anaya, president of Commercial Banking at BofA. “Preparedness, optimism and flexibility are traits of successful leaders in this environment, with investments in the workforce and digital transformation topping their current list of priorities to stay resilient and position their businesses for growth.”
Relevant data from the survey:
· MSBOs maintain a positive outlook, as they 75% plan to expand their business and 67% expect the national economy to improve in the next 12 months.
· The macroeconomic challenges of recent years, including inflation, the threat of a recession and supply chain issues, are driving companies to make operational changes, such as raising prices (45%)reassess cash flow and expenses (37%), increase the number of employees salaries (35%) and reduce commercial costs (33%).
· 90% of MSBOs plan to get funding for their businesses over the next 12 months, including through business credit cards (43%), traditional bank loans (38%), personal savings (27%), personal credit cards (25%), and equity financing risk (21%).
· Among more than half (54%) of MSBOs planning to apply for a bank loan or line of credit in the next 12 months, plan to use these funds to: invest in new technology (43%)investing in new equipment (37%) and marketing/promoting your business (35%).
· Over the past 12 months, 90% of MSBOs have adopted digital strategies to further optimize their businesses and operations, with new digital tools that help them save time (48%)increase customer satisfaction (43%), manage cash flow (43%), stay organized (41%), and reach new customers (37%).
· Additional ways that innovation is at play within midsize companies include: 87% plan to further use automation and artificial intelligence to stand out from the competition (45%), help with hiring (45%), and streamline payroll and accounting (43%).
The report found that many MSBOs struggle to find qualified and experienced employees, so wages are rising (43%)offering more PTO (40%), strengthening retirement benefits (36%), and introducing new employee training and resource groups (34%).
· Four out of five (78%) business owners say the following actions over the past year have had a significant impact on employee morale and/or retention:
– Increase in paid time off (PTO) (39%)
– Offering cost of living bonuses (38%)
– Provide health care benefits additional (37%)
– Increase in retirement benefits (3. 4%)
For more details about the report, enter here.
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