Business owners in Houston, Texas, are optimistic about their prospects for growth, according to the 2018 Bank of America (BofA) Business Advantage Small Business Owner Report.
The report found that 74 percent of Houston entrepreneurs are confident their local economy will improve in 2018. That percentage is 18 percentage points above the national average and the highest level of local confidence among business owners in the major cities BofA surveyed.
As far as the national economy goes, 57 percent of Houston entrepreneurs are confident it will improve, slightly above the national average (54 percent).
Further, 73 percent of Houston entrepreneurs expect their revenue to increase in 2018 — up 5 percentage points from the previous year.
In addition, 36 percent plan to hire more employees, down 4 percentage points from the previous year. It is, however, 14 percentage points higher than the national average. The vast majority (83 percent) of Houston business owners plan to expand their businesses in the year ahead, which is also 14 percentage points higher than the national average. Additionally, 74 percent plan to grow their business over the next five years.
“Houston small business owners have continued to show incredible resilience throughout months of recovery from Hurricane Harvey,” Elizabeth Romero, small business central division executive at Bank of America, said. “Confidence in the local economy is soaring, and Houston entrepreneurs are eager to hire, expand in the short term and grow their businesses in the long term.”
Among other findings, 62 percent said the new tax policy has made them more optimistic. About 81 percent expect to receive savings due to the tax policy with 41 percent saying they will use it to invest back into their business and 24 percent saying it will be used to expand operations. Further, 19 percent will use it to award raises and bonuses to employees.
Finally, 71 percent of Houston business owners say they are concerned about health care costs, up 8 percentage points from the previous year.