Three out of every 4 small-business owners in Chicago plan to grow their enterprises over the next five years, even though more than half say they are still smarting from the effects of the Great Recession, a new survey shows.
A majority of Chicago’s small businesses also expect their revenue to increase in the coming year and plan to hire more employees, according to findings of a survey released Monday by Bank of America.
Owners said they will be adding capacity to take larger orders, including expanding their delivery fleet, opening new stores and increasing production as they anticipate higher consumer spending.
“Demand is growing. Volume has picked up. More businesses are applying for loans to grow their businesses,” said Jim Holmes, manager of small-business banking for Bank of America.
Chicago’s entrepreneurs are more confident than their national peers when it comes to local, national and global economies, with 56 percent saying they’re bullish about their local economy compared with 49 percent nationally.
According to the survey, 58 percent are positive about the national economy (48 percent nationally) and 46 percent are optimistic about the global economy (35 percent nationally).
However, about a third said they were concerned about mandated health care plans, an increased minimum wage and mandated paid sick leave.
The survey, which polled 300 owners in March, has a margin of error of 5.7 percentage points.
Sixty-six percent said they would consider delaying or reducing their own compensation in 2015 to make ends meet. At the same time, however, that same percentage planned to reward employees with goodies such as spot bonuses, pay increases, dinners and outings.
Among other findings:
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*59 percent of Chicago small-business owners reported that their businesses are still recovering from the recession, with only one-quarter saying they had fully recovered.
*70 percent of business owners plan to expand their firms over the next five years, up from 59 percent a year ago.
*64 percent expect their revenue to increase this year, up from 59 percent last year.
*19 percent of small-business owners intend to apply for a loan in 2015 to grow their business, compared with 14 percent a year ago.
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