Small, Mid-Sized Business Owners Expect Revenue Growth

A majority of small and mid-sized business owners expect their revenues to increase this year, according to the 2024 Bank of America Business Owner Report, conducted in partnership with Bank of America Institute. 

While business owners remain mindful of the impacts of inflation and interest rates on their bottom lines, both concerns have lessened since Spring 2023. And despite some lingering uncertainties over the broader economy, business owners plan to expand their businesses in the year ahead.

"Small business owners remain cautiously optimistic in 2024," said Sharon Miller, president and co-head of business banking at Bank of America, in a statement. "With anticipated revenue increases, many are focused on engaging with customers and implementing new technologies that will help them differentiate their businesses."

The report includes input from more than 1,400 small and mid-sized business owners (defined as businesses with $100,000 to $5 million and $5 million to $50 million in annual revenues, respectively). 

When looking at attitudes concerning the national economy, business owners' outlooks varied by the size of their business: 75 percent of mid-sized business owners expect the national economy to improve over the next 12 months, while just 33 percent of small business owners expect the same.

Mid-sized business owners maintain a positive business outlook:

• 87 percent believe their revenue will increase over the next 12 months.
• 80 percent plan to expand their businesses in the year ahead.
• 69 percent plan to hire over the next 12 months.
• 84 percent said their revenues were higher in 2023 than in 2022.

Among small business owners:

• 65 percent expect their revenue to increase in the year ahead (holding steady since last spring).
• 39 percent plan to expand their business over the next year.
• 30 percent plan to hire more employees over the next 12 months.
• 55 percent reported higher business revenues in 2023 than in 2022.