By the Numbers: Most L.A. small businesses expect to grow in 2016
Sigifredo Lopez, who has a business selling school and soccer uniforms in the San Fernando Valley, looks through inventory at his small shop in August.
Los Angeles small-business owners say they are confident their sales will increase in the new year and are planning to step up hiring, according to a survey released Tuesday by Bank of America.
More than two-thirds, 68%, said they expected their revenues to increase next year, with 62% of L.A.-area small-business owners reporting that they expect to hire more workers.
"Small-business owners that made it through the tough years going back five or six years, they've come out of it stronger," said Troy Bosch, senior vice president and small-business-banker manager at Bank of America. "They've really gotten a handle on expenses, and it has made them more productive and efficient. I think we're starting to see that positively impacting the bottom line."
At the same time, 40% of small-business owners said they were concerned about minimum wage increases, compared to 35% of small-business owners nationwide. This summer both the L.A. City Council and the L.A. County Board of Supervisors voted to increase the minimum wage to $15 an hour by 2020.
Here's what the survey found:
Black Friday sales aren't as relevant for L.A. small businesses
55% said Black Friday had no impact on their business' bottom line, compared to 58% a year ago
59% said Cyber Monday was "overhyped" and had no impact on their bottom line, compared to 63% a year ago
Nationwide, 51% of small-business owners said Black Friday had no effect on their bottom line, and 55% said Cyber Monday had no effect.
Confidence in their company's finances
79% of L.A. business owners said they will likely hit their year-end revenue goal
83% of small business owners nationwide said they will likely hit their year-end revenue goal
But not as much confidence in the local economy
53% of L.A. business owners said they think the local economy will improve in 2016, compared to 62% a year ago
62% of business owners nationwide said they think the local economy will improve in 2016, compared to 50% a year ago
L.A. was the only city in the survey to report a decline in local economic confidence. Confidence in the national economy was flat (48%) compared to last year, but belief that the global economy would improve increased slightly to 33% from 29% last year.
The Fall 2015 Bank of America small-business owner report was conducted by Braun Research Inc. and surveyed 1,001 people nationwide from August to September. An additional 300 people were surveyed in L.A., as well as in eight other target cities. The margin of error for the national survey is 3.1% and the margin of error for target cities sample is 5.7%.
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