Local small business owners continue to project one of the strongest business outlooks nationwide this spring, according to the Spring 2019 Bank of America Business Advantage Small Business Owner Report. At the same time, the report found that entrepreneurs in Miami-Dade, Broward and Monroe counties are less confident in the economy, and have mixed views on the impact of last year’s landmark tax reform and trade tariffs.
The report, based on a semiannual survey of over 1,500 small business owners across the country and the greater Miami area, reveals that:
“Local entrepreneurs are projecting a more cautious business outlook compared to last fall, but overall, they’re continuing to expand and hire at a higher rate than their peers nationwide,” said Odalis Martinez, Miami small business banker manager at Bank of America. “Overall, South Florida entrepreneurs’ more conservative business outlook echoes a nationwide trend of diminished economic confidence and cautious expectations.”
Sixty-two percent of South Florida entrepreneurs expressed concern about the current political environment, though they are divided over how major policy issues are directly impacting them. Fifty-four percent of South Florida business owners say the new tax code has had an impact on their business — with 33 percent reporting that impact as positive. This is down from the 46 percent who anticipated a positive impact one year ago.
Regarding U.S. trade policy, 49 percent say they have been impacted by tariffs, with 19 percent reporting the impact as mixed, 17 percent reporting it as negative and 13 percent reporting it as positive. Additionally, 48 percent of South Florida entrepreneurs say they’re concerned about climate change impacting their business, the highest level of concern nationwide.
Unexpected or major economic events can transform a business in the blink of an eye. While most South Florida entrepreneurs are taking steps to protect their business from potential threats such as natural disasters, an economic downturn or a cyber breach, a majority of business owners do not have a plan to address reputational crises or challenges.
Customer feedback holds tremendous sway in the digital era, with online reviews serving as a powerful channel for sharing both compliments and criticisms. While 66 percent of business owners in South Florida have received a negative online review of their business, 67 percent believe that positive reviews matter the most, though 33 percent say negative reviews have a greater impact on their business.
Furthermore, 77 percent say reviews are important to the success of their business, with 85 percent reporting that positive reviews have helped generate business opportunities. Recognizing that negative reviews do have an impact, 77 percent of business owners in South Florida who have received one say they respond as soon as possible to limit the reputational damage.
For a complete, in-depth look at the insights of the nation’s small business owners, read the Spring 2019 Bank of America Business Advantage Small Business Owner Report.
Ipsos Public Affairs conducted the Bank of America Small Business Owner Report Survey for spring 2019 online between February 8 and February 24, 2019 using a pre-recruited online sample of small business owners. Ipsos contacted a national sample of 1,504 small business owners in the United States with annual revenue between $100,000 and $4,999,999 and employing between two and 99 employees. In addition, a total of approximately 300 small business owners were also surveyed in each of 10 target markets: Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Miami, New York, San Francisco and Washington, D.C. The final results were weighted to national benchmark standards for size, revenue and region.
Prior to 2016, previous waves of the Small Business Owner Report Survey were conducted by telephone and while best efforts were made to replicate processes, differences in sample, weighting and method suggests caution when making direct statistical comparisons of the results from pre-2016 and post-2016.
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 66 million consumer and small business clients with approximately 4,400 retail financial centers, including approximately 1,800 lending centers, 2,200 financial centers with a Consumer Investment Financial Solutions Advisor, and 1,500 business centers; approximately 16,400 ATMs; and award-winning digital banking with more than 37 million active users, including over 27 million mobile 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 across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
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Matthew Daily, Bank of America