2021 Bank of America Small Business Owner Report

I am pleased to present the 2021 Bank of America Small Business Owner Report, our latest study exploring the perspectives, aspirations and concerns of small business owners around the country.

Despite continued challenges, our latest research found small business owners have started 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. 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. Along those lines, the U.S. political environment and health care costs remain top concerns for business owners 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 tapped into 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. Two-in-five business owners say the pandemic impacted their mental and/or physical health, and more than four-in-five acknowledge it created additional stress around running their business. That said, many entrepreneurs found healthy and productive ways to cope, including making time to do enjoyable activities and prioritizing time with family and friends.

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.

I am consistently inspired by business owners throughout our country who have remained resilient and determined – regardless of the challenges presented. As we look at how we can help, we’ve made a $1.25 billion, five-year pledge to address economic and racial inequality with a portion dedicated to small business owners in impacted local communities. Whether you’ve owned and operated a small business for decades or are just starting out, Bank of America is committed to helping provide you with the resources necessary to manage, sustain and grow your business.

Learn more in our full report.