A survey by Bank of America Corp. has found that only 37 percent of business owners in Los Angeles think the U.S. economy will improve this year, but 62 percent believe their own businesses will grow. In general, the bank’s Small Business Owner Report, released earlier this month shows entrepreneurs in L.A. are more dour than the national average. Among surveyed U.S. business owners, 54 percent think the national economy will expand, a figure 17 percentage points higher than in L.A. However, Los Angeles business owners are more optimistic about the local economy, with 43 percent believing it will improve in 2018. Even that number trails the national average by 13 percentage points. “This is a common pattern that we typically see,” Franco Terango, small business executive for Bank of America’s Southwest Division, said in an email to the Business Journal. “Over the last two years, the number of entrepreneurs who think their businesses will grow within the next five years has remained steady. … Despite short-term concerns about the local and national economies, Los Angeles entrepreneurs are optimistic about their revenue outlook in the year ahead and are poised for long-term growth.” The report, based on a semi-annual survey of 1,000 small business owners nationwide, also looked at attitudes toward tax reform. In Los Angeles, 76 percent of respondents expect savings for their business because of the policy, and 38 percent have altered their 2018 business plans because of it. “While a majority of Los Angeles entrepreneurs is optimistic about the new tax policy, they still face several challenges. Health care costs remain a top economic concern, and concerns about other factors, such as interest rates and government regulations, are on the rise since spring 2017,” Terango said. – Joel Russell
