Bank of America recently released the results of an interesting survey about small businesses. While the majority of small business owners are concerned about a potential recession, the data is showing that there’s been significant growth for small businesses over the last year.
This survey looked at over 1,000 small business owners across the country. Undoubtedly, inflation and supply chain disruptions have been an obstacle for businesses to overcome. As a result, 79% of business owners have raised prices in the last year. Additionally, nearly half plan to utilize automation and artificial intelligence for their businesses in the coming year.
Businesses plan to use AI to help with:
- Streamlining payroll and bookkeeping
- Standing out from competitors
- Helping hire employees
- Replacing traditional employee roles
Despite these challenges, over half (56%) of business owners reported increased revenue in 2022 over 2021. Just under half (48%) of business owners plan to expand their businesses.
Business owners have taken steps to retain employees over the past year. Thirty-four percent have added cost-of-living bonuses and have modified policies to allow remote/hybrid work, and 33% have increased vacation time. Interestingly, 75% of these business owners said that these steps meaningfully impacted employee retention.
When it comes to attracting new employees, employers also are investing in additional perks, remote/hybrid work, new employee training groups, and healthcare benefits.
Some sustainable business practices that are increasing in popularity are reducing paper usage, purchasing electric business vehicles, and working with sustainable vendors. However, these methods have added challenges of their own such as:
- Increased costs
- Limited supplier options
- Quality of sustainable products/services
- Ignorance about what is considered sustainable
Nevertheless, 78% of business owners plan to implement sustainable strategies in the coming year.
The number of business owners that have digitally optimized their business has grown from 70% to 80% in the past year using methods like:
- Accepting more forms of cashless payments
- Online business banking
- Creating and maintaining the business’ social media
- Implementing digital-first marketing strategies
- Implementing online sales
- Using a cloud-based platform
These digital tools have helped small business owners to:
- Save time
- Stay organized
- Manage cash flow
- Reach new customers
- Increase customer satisfaction
- Streamline marketing
- Implement sustainable tactics
The Coppola Firm knows small business because many of our attorneys are business owners as well. If you’re ever in need of guidance, please reach out at 716.839.9700 or email us at info@coppolalegal.com with any questions.
