CHERRY HILL, N.J., March 21, 2016 /PRNewswire/ -- A majority of New York City small business owners anticipate a successful 2016, according to the third annual Small Business Pulse Check, a regionally focused survey conducted by TD Bank, America's Most Convenient Bank®, that explores the challenges and opportunities facing small businesses. A staggering 86 percent of NYC business owners feel optimistic or excited about 2016, with 39 percent expecting 2016 to be their "best year yet." This follows a bullish 2015, when nearly half (46 percent) of businesses exceeded their annual revenue goals.
TD Bank asked 495 small business owners across the five boroughs about their revenue goals, 2016 outlook, financing needs and the influence of the local economy. An impressive 78 percent of business owners said they expect to grow sales and revenue in 2016. Outpacing all other boroughs, 86 percent of Bronx business owners anticipate stronger revenue in 2016 than in 2015, with 60 percent reporting that they also exceeded last year's revenue goals.
To fuel this growth, small businesses across New York will expand products and add additional employees (49 percent). Three in four (75 percent) small business owners report that they have financing needs to fund essential working capital (51 percent), marketing or advertising (46 percent) and cash flow (45 percent).
"New York business owners feel optimistic about the future, which is a positive sign for the regional economy," said Chris Giamo, TD Bank Regional President, Metro New York. "With the expansion of local small businesses, we should see job and wage growth, and increased consumer spending, which bodes very well for the regional marketplace and for New Yorkers as a whole."
Millennial-Owned Businesses Outperform Boomers
Millennial-led businesses demonstrated strong performance, resulting in higher optimism and shifting priorities.
- Nearly half (47 percent) of Millennial-led businesses exceeded revenue goals last year compared with 21 percent of Boomer-led enterprises. Conversely, 7 percent of Millennial-owned companies fell short of revenue goals, versus 21 percent of Boomer-led businesses.
- Millennial owners placed a premium on hiring and retaining great employees, while just 4 percent of respondents aged 55 and older shared this focus. Instead, Boomers were more likely to emphasize expansion of product and service offerings.
- To bolster projected growth in 2016, Millennials intend to increase their firm's size (80 percent), add more staff (59 percent) and seek financing (75 percent). In contrast, just 16 percent of Boomers anticipate increasing their headcount, while 45 percent plan to seek credit for business growth.
Local Operators Still Face Challenges
The New York economy has had a positive effect on business performance, according to nearly half of owners surveyed. Yet local business owners cited the following three regional business challenges:
- High cost of housing and rising housing costs in proximity to business location – 35 percent
- Finding affordable office space and coping with increasing rents – 24 percent
- Increasing property taxes – 22 percent
When considering their top business expenses for the year, 35 percent of respondents cited employee healthcare or health insurance to be their largest cost, followed rent or real estate tax increases (25 percent).
The study was conducted among a representative group of small business owners from New York City in February 2016. The sample size of 495 has a margin of error of +/- 4.2 percent. Of this representative group of small business owners, 98 were Hispanic small business owners in New York. The survey was hosted by global research company Vision Critical.
About TD's Pulse Check
2016 marks TD Bank's third annual Small Business Pulse Check, a regionally focused survey that includes questions on the challenges and opportunities facing small businesses in New York City. The survey polled more than 495 small business owners with revenue of $5 million or less in the five boroughs (Bronx, Brooklyn, Manhattan, Staten Island and Queens).
About Vision Critical
Vision Critical provides a cloud-based customer intelligence platform that helps companies build engaged, secure communities of customers they can use continuously, across the enterprise, for ongoing, real-time feedback and insight.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 8 million customers with a full range of retail, small business and commercial banking products and services at approximately 1,300 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.tdbank.com. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com.
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SOURCE TD Bank