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 customers
Miami 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 policymakers
Miami
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 owners
Although 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 Report
Braun
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 America
Bank 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
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consumer and small business relationships with approximately 4,800
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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
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Contacts:
Matthew Daily, Bank of America,
1.404.607.2844
matthew.daily@bankofamerica.com