BANK OF AMERICA
Local Entrepreneurs Less Optimistic Than National Counterparts
Miami small business owners have fewer plans for growth than their counterparts across the country, according to the spring 2014 Small Business Owner Report, released today by Bank of America. The report, a semi-annual study exploring the concerns, aspirations and perspectives of small business owners in Miami and around the country, found that 46 percent of Miami small business owners are confident that their local economy will improve over the next year, and half have plans for growth in the next five years.
This is low in comparison to small businesses in other cities, where on average 65 percent of small business owners have plans for growth. Likewise, only 36 percent of Miami entrepreneurs plan to hire additional employees over the next year, and 54 percent expect revenues to increase during that timeframe, compared to 68 percent nationally.
“Small businesses play a critical role in Miami’s economy and Bank of America is on the ground to help this important group meet their goals,” said Odalis Martinez, Miami Small Business Banking manager at Bank of America. “A successful small business community drives growth for the rest of the city, and we are committed to helping Miami businesses achieve this success in the years ahead.”
Concerns about state of the economy
While small business owners in Miami express the least amount of concern about economic factors of any city surveyed, concerns do remain. Miami small business owners are worried about the following factors and their impact on business:
Miami small business owners prioritize work-life balance
Fifty-eight percent of Miami small business owners feel that they are effective at managing work-life balance; however, 70 percent feel they have made major personal sacrifices due to their business. Time for themselves, vacation/leisure time and a general social life are the largest sacrifices Miami small business owners make. However, the findings show that small business owners in Miami make fewer personal sacrifices than small business owners nationally.
Along similar lines, small business owners in Miami value their family time. Less than one-third (31 percent) say they sacrifice their relationship with their partner as a result of owning a business, compared to 43 percent nationally. Thirty-six percent of Miami small business owners say that running a small business has no bearing on the amount of time they spend with their family, which is higher than the national average.
Small business owners delaying retirement
While effective at managing work-life balance, Miami small business owners love what they do and don’t plan to stop any time soon. Similar to those in the rest of the country, entrepreneurs in Miami are committed to their business past the traditional retirement age, where more than half (54 percent) plan to keep working until they are over 65, or until they are no longer physically capable of doing so. A majority (62 percent) say they will do so because they enjoy running their business and do not want to stop working. Most are uncertain about plans for the business once they do retire; only 40 percent of Miami small business owners have a succession plan in place, compared to 52 percent of small business owners nationally.
Lending activity to small businesses strong
Bank of America has a nationwide network of banking centers and professionals that are committed to its more than 3 million small business clients and their local communities. In 2013, Bank of America extended more than $1.2 billion in new loans to small businesses in Florida – a 47 percent increase over 2012. This has helped enable Bank of America to exceed its national small business lending pledge to the White House and the U.S. Small Business Administration.
For an in-depth look at the attributes of the nation’s small business owners, read the full spring 2014 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 between March 4 and March 31, 2014, 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 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 (where n=300) is +/ 5.7 percent; and the margin of error for the oversampled markets (where n=301) is +/ 5.6 percent, with each 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 businesses, 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 49 million consumer and small business relationships with approximately 5,100 retail banking offices and approximately 16,200 ATMs and award-winning online banking with 30 million active users and more than 15 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 more than 40 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.