Small-business owners keeping an eye on politics and health care costs
Getting back up to speed after the pandemic means SMBs are watching day-to-day operations closely.
After more than a year of dealing with the repercussions of the pandemic, small-business owners are beginning to regain their footing.
“Economic confidence and business revenue expectations have bounced back significantly from levels seen last fall, with hiring plans on the rise as well,” said Sharon Miller, head of small business for Bank of America. “Most also feel that a widely available vaccine in their local community will be helpful in bringing their business back to normal.
“While business and economic outlooks are on the rise, entrepreneurs are keeping a close eye on macro factors that may impact their day-to-day operations. As the Biden administration begins to implement its legislative agenda, entrepreneurs are monitoring indicators like commodities prices, interest rates and corporate tax rates closely for potential impacts on their business.”
The 2021 Bank of American Small Business Owner Report took the pulse of small-business owners across the nation. The U.S. political environment and health care costs are their top concerns this year.
Many business owners tapped into their personal networks and professional resources last year to help them navigate the pandemic, such as friends and family, accountants, other small-business owners and small-business bankers.
When seeking capital during the pandemic, more than two-thirds of business owners turned to various funding sources to stay open and operating, including personal savings, business and/or personal credit cards and Paycheck Protection Program loans.
“Not only did the pandemic directly impact many operational aspects of running a small business, it undoubtedly impacted entrepreneurs’ personal well-being as well,” Miller said.
Among the other key findings:
Economic concerns. Concern over both the coronavirus and consumer spending declined from the fall, while concern over commodities prices and interest rates increased. Competition for talent. Looking ahead, one in five business owners plans to hire this year, up significantly from last fall. Coronavirus challenges and recovery. The coronavirus brought on significant challenges for business owners. Many took advantage of programs and resources to help navigate the pandemic. Impact on health and wellness. The coronavirus dealt a heavy blow to business owners, affecting not only their business but also their personal wellbeing. Two in five say the coronavirus impacted their mental and physical health, and more than four in five acknowledge the pandemic created additional stress around running their business. Commitment to social justice. As the national conversation around social justice has become more prevalent over the past year, business owners are evaluating how a commitment to social justice affects running their business. Operational shifts and transition to digital. The pandemic has caused business owners to make operational changes and accelerate the transition to digital.
“Looking ahead, many business owners anticipate operational changes they made in response to the pandemic will remain in place permanently, such as enhancing sanitation practices and shifting to more digital and online sales strategies,” Miller said.
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