Fewer DFW small business owners plan to hire this year, survey shows

Small business owners in North Texas remain optimistic about the economy, but fewer plan to hire new employees this year compared to last year, according to a new survey released by Bank of America.

Just 39 percent of small employers plan to hire in the next year, down from 57 percent who planned to hire a year ago, according to the bank’s spring Small Business Owner Report.

But the survey results show DFW business owners are more confident about meeting revenue projections than the nation’s business owners as a whole, and more confident about the local economy.

“We’re still seeing quite a bit of optimism in Fort Worth and Tarrant County despite the impact of energy on the equation,” said Mike Pavell, president of the Fort Worth market for Bank of America.

Pavell said the bank’s clients continue to show strength in commercial real estate, residential housing and manufacturing.

“We’ve historically seen North Texas business owners feel more confident,” he said. “Texas is a can-do state from a business opportunity standpoint. We also benefit from a diverse base of businesses here in North Texas.”

The survey does show signs that the heated presidential primaries are causing concerns for business owners. Nationwide, 76 percent of respondents believe that the upcoming presidential election this fall will affect their business either “a lot” or “somewhat.”

And many business owners are concerned about health care costs. In Dallas-Fort Worth, 43 percent of small business owners said they offer health insurance to their employees, and a quarter of them reported that health care costs went up more than 20 percent this year.

“As this election year progresses, Dallas/Fort Worth small business owners appear to be hitting the pause button on their business growth and hiring plans, which is consistent behavior with past election years,” said Jeffrey Coomer, D/FW small business banker manager at Bank of America, in a statement.

The survey, conducted online by GfK Public Affairs and Corporate Communications, sampled 1,000 small business owners nationwide with annual revenue between $100,000 and $5 million, and from 2 to 99 employees. In addition, 300 small business owners were also surveyed in nine target markets including Dallas-Fort Worth.

This story was originally published May 26, 2016 at 9:46 AM with the headline "Fewer DFW small business owners plan to hire this year, survey shows."