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Small businesses expect cash registers to ring this Black Friday and Cyber Monday

By recent accounts from the latest economic data, American consumers have a tight grip on their money.

U.S. households put rising incomes to work by saving, rather than by spending. Consumer spending barely budged in October, up 0.1 percent, according to the Commerce Department.

Lower oil prices might be putting extra cash in Americans' wallets, but it's not helping their mood. The Conference Board’s Consumer Confidence Index fell hard in November, to 90.4 from 99.1 in October. Economists were expecting a November reading of 99.5.

Despite all these headwinds, for the first time in two years, more small business owners are feeling confident their cash registers will be ringing on Black Friday and Cyber Monday.

In the retail sector, “Seventy-four percent of small business owners said that they will improve their revenue and their bottom line from Black Friday and Cyber Monday,” said Sue Lonergan, small business executive at Bank of America (BAC).

The optimistic outlook from small business owners may be the correct assumption on holiday spending. The National Retail Federation projects sales in November and December to increase 3.7 percent to $630.5 billion, excluding autos, gas and restaurant spending.

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Bank of America’s latest report on small business owners also found that millennial and Generation-X entrepreneurs are more confident about their business growth, as well as that of the overall economy. “There are huge generational differences in the way that the business owners are running their businesses, and we see the millennial so much more adept at using technology and using social media … than the baby boomers,” said Lonergan.

Year-end revenues expectations
Year-end revenues expectations

Small business owners surveyed are also planning on hiring additional employees over the next 12 months, up significantly from a year ago. And once again, technology is a leading factor. “Small business owners are looking for individuals who have that technology expertise, because they do want to make more of a foray into the social media and the technology sectors themselves,” said Lonergan.

Even more positive news is that these jobs aren’t just low-wage or part-time. “What we've seen in this survey is that most of the growth is more with the high-paying jobs than it has been in the past,” said Lonergan.

Perks and Benefits Small Biz Offers
Perks and Benefits Small Biz Offers

When it comes to enticing recruits or keeping workers happy, small businesses are adopting perks like nap pods and pet-friendly work environments. But still, less than half of those surveyed offered health care. “it's the same answer every year—that they are worried about the cost of health care and how to help provide health care to their employees. And it's just a challenge for them because of the cost of it,” said Lonergan.

The Bank of America Small Business Owner Report is a semi-annual survey of about 1,000 small business owners in the United States with fewer than 100 employess and annual revenue between $100,000 and $4,999,999.

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