Bank of America Finds 60% of Small Business Owners Expect their Revenue to Increase This Year, a Significant Rebound since Last Fall

According to the Bank of America 2021 Small Business Owner Report, U.S. small business owners have started to regain their footing after an unprecedented year of challenges brought on by the coronavirus.

The research, based on a survey of nearly 1,000 small business owners across the country conducted in March, reveals business outlook and economic confidence have bounced back significantly from levels seen in the fall. Over the next 12 months:

• 60% of business owners expect their revenue to increase, up from 34% in fall 2020.
• 56% are confident their local economy will improve, up from 39% in fall 2020.
• 50% anticipate the national economy will improve, up from 37% in fall 2020.
• 21% plan to hire, up from 13% in fall 2020.

Furthermore, 79% of business owners say a widely available vaccine and/or herd immunity in their local community will be helpful in bringing their business back to normal, while 15% say that business is already back to normal.

“Small business owners have showed time and again during the pandemic that they are the resilient backbone of our economy and of local communities throughout the country,” said Sharon Miller, head of Small Business at Bank of America. “From providing essential services to revamping operating models, I am inspired by the dedication and passion of entrepreneurs across the country and encouraged to see their renewed optimism about the future of their businesses.”

Top economic concerns
Consistent with last fall, business owners’ top concerns for the year ahead include the U.S. political environment (71%) and health care costs (64%). Concerns that have declined significantly from last fall include the coronavirus pandemic (55%, down from 75% in fall 2020) and consumer spending (46%, down from 56% in fall 2020). Conversely, business owners expressed increased apprehension over macro factors such as commodities prices (59%, up from 42% in fall 2020), corporate tax rates (52%, up from 44% in fall 2020) and interest rate increases (46%, up from 35%).

Operating during the pandemic and the transition to digital
More than half (55%) of business owners say they faced difficulties keeping their businesses open as a result of the pandemic. As a result, many business owners made operational changes to their business over the past year, with 62% anticipating these changes will remain permanent – including:

• Continued enhancement of sanitation practices (54%)
• Further building a digital sales strategy (32%)
• Accepting more forms of cashless payments (27%)
• Maintaining shortened hours of operation (22%)

Sixty-two percent of business owners adopted new digital tools and strategies to optimize operations in response to the pandemic, including: