Despite Challenges, Local Entrepreneurs Are
Significantly More Optimistic About Business Growth Than They Were
One Year Ago
Seven years after the Great Recession, 61 percent of Miami small
business owners report their businesses are still in the process of
recovering, according to the spring 2015 Bank of America Small
Business Owner Report, a semi-annual study exploring the concerns,
aspirations and perspectives of small business owners in Miami and
around the country. Though many feel that they have not completely
recovered, they are significantly more optimistic about the
economy, business growth, their revenue expectations and hiring
plans than they were a year ago, based on a comparison with spring
2014 survey results.
“Small business owners in Miami continue to show confidence as
well as optimism about the economy and the future growth of their
businesses,” said Odalis Martinez, Miami small business banker
manager at Bank of America. “They take pride in building
relationships within the community and truly feel supported by
Miami residents.”
According to survey results, small business owners from the
Miami area are far more confident in the economy than they were a
year ago. In spring 2015, 59 percent expressed confidence that the
local economy would improve over the next year, compared to 46
percent surveyed in 2014. Confidence in the national economy is up
17 percent from a year ago at 61 percent, and Miami entrepreneurs
are 12 percent more confident about the global economy from a year
ago (46 percent).
Miami entrepreneurs are also feeling positive about the future
of their businesses. Nearly three-quarters (72 percent) of those
surveyed plan to grow their business over the next five years, up
22 percent from last spring. In addition, more than two-thirds of
local entrepreneurs (68 percent) expect an increase in revenue over
the next 12 months, compared with 54 percent last year.
When looking at staffing, more than half of Miami entrepreneurs
(53 percent) plan to hire more employees this year. This is a
significant increase compared with survey results from one year
ago, when 36 percent indicated their intent to hire more. Despite
these hiring projections, nearly half (46 percent) of Miami small
business owners say it’s difficult to find qualified staff. They
say the top challenges in finding qualified staff are attributed to
a skills gap (58 percent) and high salary demands (45 percent).
Miami small business owners demonstrate self-sacrifice;
prioritize employees and customersMiami small business owners
are prioritizing the needs of customers and employees before their
own. The survey reveals that 65 percent of local entrepreneurs
would rather delay or reduce their own compensation than take other
courses of action to make ends meet; this includes scaling back on
the services they offer customers (11 percent) or reducing
compensation for their staff (8 percent). Additionally, 45 percent
report that they have never given themselves a raise, or haven’t
done so in more than two years.
Almost all (97 percent) Miami small business owners say they
have employee appreciation programs, including:
- Dinners and outings (49 percent).
- Office recognition (45 percent).
- Spot bonuses (40 percent).
They also provide a number of benefits for employees,
including:
- Flexible hours (54 percent).
- Salary bonuses (46 percent).
- Paid vacation time (43 percent).
The majority of Miami small business owners (53 percent) say
that establishing relationships with customers and clients is the
primary driver of repeat business, and they find many ways to show
their appreciation, including:
- Loyalty programs (35 percent).
- Events or celebrations (34
percent).
- Referral programs (33 percent).
Additionally, 60 percent say a primary way they have adapted to
customer demands is by becoming more technologically savvy (62
percent nationally), while 52 percent have expanded product and
service offerings that cater to a younger client base (41 percent
nationally).
Miami entrepreneurs appreciate support from community and
policymakersMiami small business owners overwhelmingly support
other local small businesses in the community by shopping small.
Sixty-seven percent of Miami small business owners gave themselves
an “A” or “B” grade for shopping at other local small businesses.
They also rate their local community high in shopping small, as 61
percent handed out an “A” or “B” grade when assessing how well
Miami residents frequent local small businesses.
In addition to feeling supported by their local community, 44
percent of Miami entrepreneurs believe that policymakers appreciate
small business owners, which is 14 percent higher than the surveyed
national average.
When asked about the impact of specific government policies,
Miami small business owners say the greatest potential for a
positive impact on their business could come from incentives to
keep jobs on U.S. soil (38 percent) and expanded tax breaks for
automatically enrolling employees into retirement savings accounts
(32 percent). Conversely, the policies that would have the most
negative impact on their business would be required health care
plans for employees (38 percent), an increased minimum wage (27
percent) and mandated sick leave for employees (27 percent).
Consumer spending and health care costs are top concerns for
Miami small business ownersAlthough overall economic confidence
is running high, Miami entrepreneurs still have concerns over
specific issues. Consumer spending (65 percent) is the top concern
among Miami small business owners, followed closely by health care
costs (63 percent). Corporate tax rates and the effectiveness of
U.S. government leaders are also top issues, cited by 61
percent.
For an in-depth look at the attributes of the nation’s small
business owners, read the full spring 2015 Bank of America Small
Business Owner Report, and for additional Miami-based insights,
download the Small Business Owner Report Miami infographic
here.
About the Bank of America Small Business Owner ReportBraun
Research conducted the Bank of America Small Business Owner Report
survey by phone, from March 4, 2015, through March 27, 2015, on
behalf of Bank of America. Braun contacted a
nationally-representative sample of 1,000 small business owners in
the United States with annual revenue between $100,000 and
$4,999,999 and employing between 2 and 99 employees. In addition,
300 small business owners were also surveyed in each of nine target
markets: Los Angeles, Dallas, Washington, D.C., New York, Boston,
Chicago, San Francisco, Atlanta and Miami. The margin of error for
the national sample is +/- 3.1 percent; the margin of error for the
oversampled markets is +/ 5.7 percent, reported at a 95 percent
confidence level.
The Braun Research survey results conducted on behalf of Bank of
America and interpretations in this release are not intended, nor
implied, to be a substitute for the professional advice received
from a qualified accountant, attorney or financial advisor. Always
seek the advice of an accountant, attorney or financial advisor
with any questions you may have regarding the decisions you
undertake as a result of reviewing the information contained
herein. Nothing in this report should be construed as either advice
or legal opinion.
Bank of AmericaBank of America is one of the world's largest
financial institutions, serving individual consumers, small and
middle-market businesses and large corporations with a full range
of banking, investing, asset management and other financial and
risk management products and services. The company provides
unmatched convenience in the United States, serving approximately
48 million consumer and small business relationships with
approximately 4,800 retail financial centers and approximately
15,900 ATMs and award-winning online banking with 31 million active
users and approximately 17 million mobile users. Bank of America is
among the world's leading wealth management companies and is a
global leader in corporate and investment banking and trading
across a broad range of asset classes, serving corporations,
governments, institutions and individuals around the world. Bank of
America offers industry-leading support to approximately 3 million
small business owners through a suite of innovative, easy-to-use
online products and services. The company serves clients through
operations in all 50 states, the District of Columbia, the U.S.
Virgin Islands, Puerto Rico and more than 35 countries. Bank of
America Corporation stock (NYSE: BAC) is listed on the New York
Stock Exchange.
Visit the Bank of America newsroom for more Bank of America
news.
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Reporters May Contact:Matthew Daily, Bank of America,
1.404.607.2844matthew.daily@bankofamerica.com
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