PROVIDENCE – Three-quarters of midsized business owners expect their revenue to increase and 71% are planning to hire over the next 12 months, according to Bank of America Corp.’s “2023 Mid-Sized Business Owner Report,” released on July 26.
The report was based on an online survey of 301 midsized business owners in the United States with annual revenues between $5 million and $50 million and employing between two and 499 people. The survey was conducted by Ipsos Public Affairs from May 3-12. The results were weighted to national benchmark standards for size, revenue and region.
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“The strength of mid-sized businesses is essential to the health of the U.S. economy,” Raul Anaya, president of business banking at Bank of America, said in a statement. “Preparation, 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 remain resilient and position their businesses for growth.”
Most midsized business owners feel positive about the months ahead, as 75% plan to expand their business and 67% expect the national economy to improve over the next 12 months, according to the report.
Additional findings include:
- Recent macroeconomic challenges such as inflation, the threat of a recession and supply chain issues are driving companies to make operational changes, including raising prices (45%), revaluating cash flow and spending (37%), increasing employee wages (35%) and reducing business costs (33%).
- Ninety percent of survey respondents said they plan to obtain funding to finance 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 venture capital funding (21%).
- Fifty-nine percent of businesses say they’re looking to obtain financing to weather rising interest rates, while 23% say the rising interest rates make them less likely to seek financing.
- Among the 54% of respondents who plan to apply for a bank loan or line of credit in the next 12 months, respondents said they plan to use these funds to: invest in new technology (43%), invest in new equipment (37%) and market/promote their business (35%).
- Over the last 12 months, 90% of respondents said they have adopted digital strategies to further optimize their businesses and operations, with new digital tools helping them to save time (48%), increase customer satisfaction (43%), manage cash flow (43%), stay organized (41%) and reach new customers (37%).
- Eighty-seven percent of respondents said they plan to further utilize automation and artificial intelligence to stand out from competitors (45%), assist with hiring (45%) and streamline payroll and bookkeeping (43%).
- Eighty-eight percent of respondents see cybersecurity as a threat to their business, and as a result are further investing in digital security systems (65%) and storing less business information online (39%), according to the report.
The report also found that many midsized business owners are struggling to find skilled, experienced employees. To attract qualified candidates: 43% of respondents said they are increasing salaries, 40% are offering more paid time off, 36% are strengthening retirement benefits and 34% are introducing new employee training and resource groups.
