The FINANCIAL — 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.
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