Local Economies Matter to Small Business

Small businesses depend on small economies. A new 2012 Bank of America survey highlights the importance of local economies to small businesses; for the majority of respondents (63%), their customers come primarily from the local community.  This is one reason that small businesses remain optimistic about the future even though national economy is struggling. This makes sense, as 75% of respondents said the local economy plays a significant role in their business as opposed to 59% citing the national economy.  Here are some other highlights from the study:

  • 54% of respondents anticipate their revenue will increase over the next 12 months
  • 31% said they planned on hiring more employees, whole 56% anticipate their staffing needs will remain consistent
  • 40% say that customer loyalty comes “because they are local.”
  • 70% of SBOs believe they have enough capital to run their business
  • 78% do not intend to apply for a business loan
  • Only 29% described themselves as “very savvy” when it comes to financial matters

For the full article, see Why a Local Economy’s Strength is Critical to Small Business Success

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