Miami Small Business Owners’ Growth Expectations Shine Brighter Than Counterparts’ Nationwide
Fall 2014 Bank of America Small Business Owner Report Also Finds Miami Entrepreneurs Give Themselves High Marks on Tech Savviness Yet Reliance on Mobile Is Low
Miami small business owners’ growth plans have surged dramatically from just six months ago, with 68 percent predicting their revenue will increase in the next year, compared to 54 percent in the spring according to the fall 2014 Small Business Owner Report, released today by Bank of America.
The Small Business Owner Report is a semi-annual study exploring the concerns, aspirations and perspectives of small business owners in Miami and around the country.
Long-term growth projections also jumped, with 78 percent saying they expect their business to grow in the next five years, a dramatic increase from six months ago when half said they would grow, and significantly higher than the national average (67 percent). Hiring expectations are also healthy. Fifty-five percent of Miami small business owners plan to hire more employees in the next 12 months, a 19 percent hike from six months ago, and slightly higher than the national average of 51 percent.
“It is incredibly encouraging to see such dramatic growth and increased optimism from just six months ago among Miami small business owners,” said Odalis Martinez, Miami Small Business Banking manager at Bank of America. “Small business continues to be the cornerstone of Miami’s economy, and Bank of America is committed to helping our local businesses grow and thrive.”
Miami small business owners most optimistic about national and global
Miami small business owners are the most optimistic about the local, national and global economies compared to other markets surveyed. Confidence in their local and national economies has spiked, with 59 percent expecting improvement in both categories over the next 12 months. A year ago, only 34 percent of Miami small business owners expected their local economy to improve, and 29 percent felt the same about the national economy. Forty-six percent of Miami small business owners are optimistic about the global economy, up from 22 percent last year.
Despite this uptick, Miami small business owners have concerns about specific issues, showing greater concern than their counterparts nationally about consumer spending (65 percent, versus 59 percent nationally) and credit availability (51 percent, versus 44 percent nationally).
Technology: friend or foe for Miami small business owners?
Seventy-two percent of Miami respondents give themselves an “A” or “B” grade when it comes to tech savviness, but they may not be as plugged in as they think they are: 41 percent of Miami small business owners believe they can run their business successfully “indefinitely” without a smartphone or tablet, indicating that many may still run their businesses largely offline.
However, Miami entrepreneurs are adapting – 37 percent think that being available 24/7 via mobile phone makes them feel less stressed than they were five years ago (compared to 31 percent nationally). Overall, 79 percent of Miami small business owners agree that technology helps them connect to their employees more (compared to 69 percent nationally).
Year-end cheer expected among Miami small business owners
Eighty-three percent of Miami small business owners expect to hit their year-end revenue goals, slightly higher than the 77 percent nationally.
Data also shows that Miamians are lukewarm about Black Friday and Cyber Monday. Fifty-five percent of Miami small business owners think that Black Friday has no impact on their business’ bottom line and when it comes to Cyber Monday, and 65 percent of Miami small business owners think that Cyber Monday is overhyped and has no significance on their annual revenue.
The report also suggests that Miami small business owners are embracing the “season of giving” this holiday season. More than half (57 percent) of Miami small business owners plan to give salary bonuses to their employees during the holidays, over a third (39 percent) plan to offer flexible hours or vacation time, and 37 percent plan to give their employees holiday gifts.
For an in-depth look at the attributes of the nation’s small business owners, read the full fall 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 in October 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 48 million consumer and small business relationships with approximately 4,900 retail banking offices and approximately 15,700 ATMs and award-winning online banking with 31 million active users and more than 16 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.
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