Starting a business can bring life-changing prosperity, but research shows timing is key to success.
Newly published research by Bank of America suggests this year is a good time to take the next step toward becoming an entrepreneur. A survey of 1,000 owners participating in the 2018 Bank of America Business Advantage Small Business Owner Report shows a 25 percent increase of positive outlooks by entrepreneurs since the survey two years ago.
Fifty-four percent of business owners say they expect the national economy to continue improving in 2018, compared with just 29 percent who expected improvement in 2016.
While there are no specific numbers relative to entrepreneurship in Detroit, Bank of America officials say the local small business community is represented in the summary.
“A big part of that success is the city of Detroit, because Detroit is one of the few cities in the country that is making a major rebound,” says Mohamad Hammoud, Bank of America’s small business banking market manager for Michigan.
Evidence of progress and advancement among local entrepreneurs can be seen in the community’s shortage of business leasing space, consistently rising real estate values, and increasing property appraisal values, Hammoud says. Even small companies that have been established in suburbs like Birmingham and West Bloomfield have begun opening second shops in Detroit.
Detroiters interested in joining the positive trend of business ownership have a friend in Bank of America, Hammoud adds.
“This is where we come in to help guide them.”
While Bank of America requires that businesses operate for two years before giving them loans, partnerships with programs like Motor City Match are designed to help entrepreneurs move from the idea stage to reality. Motor City Match grants help pair business startups with resources including operating space, based on successful proposals.
“We’re finding a lot of confidence in the entrepreneurs because they have support around them,” Hammoud says. “We educate them and tell them, ‘This is what you need to grow and get the funding you’re going to want in the next two years, to grow your business and get it to where you want it.’”
Millennials and young adults are among the most ambitious entrepreneurs Bank of America supports. The report found that their ideas and innovative ways of delivering services are part of a majority preference by business owners to use mobile devices in basic tasks, digital banking and other day-to-day management. Millennials are even more likely to use devices for hiring staff, according to the research.
Regardless of age or business experience, Bank of America is available to support continued interest in local entrepreneurship, Hammoud says. A main goal is to help owners succeed past the one-year and 16-month marks that frequently see small companies close, due to lack of proper preparation.
“We’re looking to see even more good things in the future,” says Hammoud.