D.C. small business owners remain some of the most optimistic when it comes to the state of the American economy in 2017, yet they also remain some of the most cautious about hiring, a new survey from Bank of America finds.
According the BoA's spring 2017 Business Advantage Small Business Owner Report, more than two-thirds of D.C. small business owners plan to grow their business over the next five years, compared to a 56 percent nationwide average. The same report also shows that 58 percent of respondents are confident that the local economy will improve in the next year.
Bank of America worked with GfK Public Communications & Social Science to interview 300 pre-recruited small business owners in the Greater Washington area for the report between Feb. 21 and March 19. GfK interviewed owners with annual revenue between $100,000 and $4.9 million and employing between 2 and 99 employees.
Yet, while small business owners remain optimistic, they're pulling back their hiring efforts. Only 25 percent of D.C. area owners plan to hire more employees in the next year, a decline of about 20 percentage points from just six months ago, the last time the survey was conducted.
“Despite some concern about the national economy, Greater Washington area business owners are bolstered by the local economy and are looking to the future as a result,” said Michael Bonura, Washington, D.C. small business banker manager at Bank of America, in a press release. “We are excited to see these business owners planning for growth and confident about their revenue outlook in the year ahead.”
Healthcare is also a top concern for small business owners, unsurprisingly so. In the next year, 68 percent of D.C. area small business owners worry changing health care costs will impact their business (This is on par with the national survey average, which is at 64 percent). That statistic shouldn't come as a surprise to most with the fate of the Affordable Care Act in limbo as a new administration reviews possible changes.
On a lighter note, the survey notes that Greater Washington small business owners are most likely to say they are "ahead of the curve" on innovation. The superlative makes sense given the stats Bank of America is working with: 85 percent of D.C. small business owners say encouraging innovation in the workplace is a top priority, and more than two-thirds consider themselves innovative business leaders. Fifty-seven percent of local business owners envision that more offices will be virtual in the next 20 years. About 46 percent also see businesses going paperless, 32 percent see cash disappearing and 30 percent think operations will be conducted by automation.
But, hey, are we really so surprised that D.C. sees itself as innovative?
Image used via CC0 Public Domain — credit tpsdave
