Bank of America Survey Finds Miami Small Business Owners Confident on Long-Term Growth and Revenue Expectations
Miami Entrepreneurs Surpass National Average on Applying for Loans for Their Businesses
A majority of Miami entrepreneurs remain significantly more confident than small business owners across the country on revenue, growth and hiring, according to the fall 2016 Bank of America Small Business Owner Report. Thirty-one percent of Miami small business owners have applied for a business loan in the past two years – the highest among the 10 major cities surveyed and 12 percentage points higher than the national average.
The report, a semi-annual study exploring the concerns, aspirations and perspectives of small business owners in Miami and around the country, also found that 68 percent of Miami entrepreneurs believe their revenue will increase in the year ahead – a 3 percentage-point decline from the spring, but 16 percentage points higher than the national average. Seventy-one percent of Miami small business owners plan to grow their business over the next five years, in line with spring 2016 and 16 percentage points higher than their peers nationwide. Miami small business owners’ 12-month staffing projections also remain steady from spring to fall, but higher than any other market surveyed, with 47 percent planning to hire new employees in 2017.
“Miami entrepreneurs remain very confident about revenue and long-term business growth plans,” said Odalis Martinez, Miami small business banking manager at Bank of America. “While this news is encouraging, we have also seen increased concern and caution among Miami small business owners around general outlooks on the economy.”
Economic factors and issues raise concerns for Miami entrepreneurs
When it comes to specific economic factors, the cost of health care is the most prominent concern with more than 76 percent of Miami entrepreneurs reporting they are worried it will impact their business over the next year. Miami small business owners are also more concerned about the following when compared to the rest of the country:
Strength of the U.S. dollar (66 percent vs. 52 percent nationwide).
Consumer spending (63 percent vs. 51 percent nationwide).
Interest rates (60 percent vs. 46 percent nationwide).
- Credit availability (57 percent vs. 35 percent nationwide).
Additional economic concerns that Miami small business owners believe will impact their businesses in 2017 include:
Corporate tax rates (67 percent).
U.S. and/or global stock markets (57 percent).
Commodities prices (55 percent).
- Immigration policy (50 percent).
Family a key source of support for Miami small business owners
Seventy-two percent of local entrepreneurs used personal savings to get their business off the ground. Additional top funding sources used by Miami entrepreneurs when first starting out include personal credit cards (44 percent), banks (32 percent) and family or friends (28 percent).
Among the 60 percent who have borrowed or been given money for their business from family or friends, 83 percent of Miami entrepreneurs don’t regret asking those closest to them to invest in their business. Financial backing isn’t the only support Miami small business owners receive from their families; 90 percent of local entrepreneurs report they receive emotional, financial and/or operational support from their family.
While 28 percent asked family and friends for financial support to start their business, only 18 percent of Miami entrepreneurs continue to rely on their personal networks for funding once their business has been established. Banks (49 percent) and personal credit cards (45 percent) are the top two financing sources used once their business is up and running.
Miami entrepreneurs expect revenue boost this holiday season
As the holiday season approaches, the majority of Miami entrepreneurs say Black Friday (68 percent) and Cyber Monday (69 percent) are not important to their business’ bottom line. While they’re not relying heavily on popular commercial shopping days, 45 percent expect to generate more revenue this holiday season than in 2015, compared to only 24 percent nationwide.
Eighty percent of Miami small business owners plan to offer their employees at least one holiday perk. The top three perks they plan to offer include:
Giving salary bonuses to employees (35 percent).
Closing the office during the holidays (35 percent).
- Giving gifts to employees (33 percent).
To make these perks possible, 51 percent of Miami entrepreneurs say they will have to make a personal sacrifice in some way, whether it’s working longer hours (24 percent), sacrificing at least a portion of their own wage (17 percent) or forgoing vacation or days off (12 percent).
EMV technology implementation falters for Miami entrepreneurs
Despite the October 2015 deadline for businesses to implement Europay, MasterCard, Visa (EMV) technology into payment systems, only 20 percent of Miami entrepreneurs surveyed have done so. For the 33 percent who haven’t installed the technology, the top reason cited is because they don't see the importance or value of implementing it. However, for those who have adopted EMV, 69 percent say they feel more secure compared to only 37 percent nationwide who say the same.
For a complete, in-depth look at the insights of the nation’s small business owners, read the fall 2016 Bank of America Small Business Owner Report, and for additional insights, download the Small Business Owner Report national infographic here. A local Miami snapshot can also be viewed here.
About the Bank of America Small Business Owner Report
GfK Public Affairs and Corporate Communications conducted the Bank of America Small Business Owner Report survey for fall of 2016 online between August 7 and October 4, 2016 using pre-recruited online sample of small business owners. GfK contacted a national 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, small business owners were surveyed in 10 target markets: Atlanta, Boston, Chicago, Dallas/Fort Worth, Houston, Los Angeles, Miami, New York, San Francisco and Washington, D.C. A total of 300 small business owners were surveyed in Atlanta, Boston, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, San Francisco and Washington, D.C., and 100 small business owners were surveyed in Houston. The final results were weighted to national benchmark standards for size, revenue and region.
Bank of America
Bank of America is one of the world's leading 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 47 million consumer and small business relationships with approximately 4,600 retail financial centers, approximately 16,000 ATMs, and award-winning online banking with approximately 34 million active accounts and more than 21 million mobile active users. Bank of America is a global leader in wealth management, 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.
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Reporters May Contact:
Matthew Daily, Bank of America, 404.607.2844