Small-business owners are changing their business plans in response to the sweeping federal tax cuts, according to a new survey from Bank of America. Many small businesses report they would use their savings to boost investment, hire more workers, and give employees raises.
Sixty percent of those surveyed also believe their revenue will increase in 2018, compared to 48 percent in the same survey from spring 2017. Twenty-two percent of businesses also plan to hire more employees. Despite the short-term optimism, predicting the long-term impact of the cuts is difficult, and 66 percent of respondents say they don't think the cuts will significantly affect their business trajectory.
In the survey, most entrepreneurs (71 percent) say they believe the tax reform will save them money, and many small-business owners are changing their 2018 plans as a result. Here's how small-business owners say they plan to use the money:
- 37 percent -- invest in their business
- 21 percent -- give workers raises and bonuses
- 14 percent -- expand their operations
- 12 percent -- make capital improvements
The survey also highlights growing concerns about rising interest rates, as well as increased gasoline prices and healthcare costs.