Seven years after the “Great Recession,” 64% of small business owners report their businesses are still in the process of recovering, according to Bank of America’s spring 2015 Small Business Owner Report.

The report, based on a semi-annual survey of 1,000 small business owners across the country, says that only 21% of  small businesses say they have completely recovered from the recession.

Despite lingering impacts from Great Recession, owners are still confident about the future growth of their businesses:

  • 63% believe revenue will increase in the next 12 months (versus 62% last fall)
  • 66% plan to grow their business in the next five years.

“Small business owners are optimistic about the future and are working extremely hard to achieve success. As they have focused on recovery, many business owners have embraced a mindset of self-sacrifice. They are prioritizing their employees and customers above all else and it is often at the expense of their own personal or financial well-being.”
Robb Hilson, Bank of America


Actions they’ve taken to keep overhead low

The report found small business owners have been working long hours, forgoing raises and delaying their own compensation as they focus on investing in employees and attracting and rewarding repeat customers.

67 % of small business owners would rather delay or reduce their own compensation than take any other course of action to make ends meet

  • Women owners who say they have never given themselves a raise: 23 %
  • Men owners who say they have never given themselves a raise: 15 %
  • Work more than 40 hours a week (typically): 85 %
  • Work more than 60 hours a week  (typically): 30%

Small business owners continue to invest in their employees

When it comes to their employees, small business owners overwhelmingly find the need to reward them and show their appreciation in a variety of ways. Almost all (94%) small business owners surveyed say their companies have employee appreciation programs, policies, practices and benefits:

  • Dinners and outings (46%)
  • Spot bonuses (44%)
  • Office recognition programs (35%)
  • Extra time off (34%)
  • Off-cycle raises or promotions (25%)
  • Flexible hours (56%)
  • Office closure on major holidays (48%)
  • Paid vacation time (46%)
  • Health care (37%)

Want to hire, but can’t find skilled workers

46% of small business owners plan to hire additional employees over the next 12 months (down from 52%) a year ago.

  • 41% of business owners are struggling to find qualified job candidates

What are the problems with the candidates?:

  • Lack the skill sets they are seeking (59%).
  • Have salary expectations that are too high (45%).
  • Prefer to work for a large or midsize brand (29%).
  • Want benefits they do not provide (26%).

Small business owners are increasingly opting to train and develop existing personnel. Among individuals who plan to apply for a loan in 2015, 38 % plan to use the funding for employee training and development, compared with 32 % who plan to use the monies to hire new staff.


To attract and retain customers, owners focusing on relationships

Establishing relationships with customers is a primary driver of repeat business, and small business owners are showing their appreciation to their customers in a variety of ways.

57% feel they receive repeat business because of the relationships they have developed with their customer base. Popular ways owners are showing their appreciation to their customers are:

  • Monetary rewards (29%)
  • Events or celebrations (29%)
  • Free product/service for a first visit (28%)
  • Social media promotions (27%)
  • Personalized gifts (27%)
  • Referral programs (25%)
  • Appreciation days (25%)
  • Loyalty programs (24%)

Small business owners cite concerns over health care costs but remain optimistic about business growth

Top concerns with economic issues:

  • Health care costs (70%)
  • Effectiveness (ineffectiveness) of U.S. government leaders (69%)

Government policies with greatest potential for positive impact on small business

  • Expanded tax breaks for automatically enrolling employees in retirement savings accounts (36%)
  • Incentives to keep jobs on U.S. soil (31%)

Government policies with most potential for negative impact on small businesses:

  • Required health care plans for employees (39%)
  • Mandated sick leave for employees (29%)
  • Increased minimum wage (26%)

Regional Differences

The report also analyzed specific needs of small business owners in nine local markets across the country. Like their national counterparts, most small business owners in certain markets are still recovering from the recession.

  • Small business owners in Los Angeles (28%) and Miami (25%) are most likely to say their business has completely recovered, compared with New York (19%) and Boston (18%).
  • Optimism about certain local economies follows a similar pattern. Los Angeles (61%), Dallas (59%), Miami (59%) and San Francisco (61%) small business owners feeling that their local economy will improve over the next 12 months. A year ago, Los Angeles (53%) and New York (52%) small business owners had the highest rates of optimism about their local economies.
  • Small business owners in some metropolitan areas, including Dallas (57%) and Miami (53%) said they are more likely to hire additional employees over the next 12 months, compared to New York (44%) and San Francisco (40%).

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