Miami Small Business Owners Continue to Be Optimistic About 2013, Yet Concerns About the Economy Remain
Bank of America Fall 2012 Small Business Owner Report Examines Relationships With Large Businesses, Impact of Black Friday and the Significance of Local Communities
MIAMI--(BUSINESS WIRE)-- Bank of America today released the fall 2012 Small Business Owner Report, a semi-annual study exploring the concerns, aspirations and perspectives of small business owners across the country. The survey, which includes an oversampling of small business owners across the Miami market, found the majority of Miami's small business owners are planning on sustaining or growing their business over the next 12 months. Specifically, nearly one-third (30 percent) plan on hiring more employees, while 57 percent expect their staffing needs will remain consistent.
In addition, nearly two-thirds (63 percent) of the Miami small business owners surveyed anticipate that revenue will increase in 2013, while only 6 percent expect revenue to decline. However, this optimism is tempered by their views on the economy, with only 39 percent of Miami small business owners confident that their local economy will improve over the next 12 months. Respondents were even less confident in the national (33 percent) and global economies (20 percent) improving in that same period.
The significance of Miami's local economy
The study also shows that the local economy has the greatest impact on Miami small business owners. Nearly half (49 percent) reported that the majority of their customers come from the local community, compared to 29 percent who indicated that their customers come primarily from outside the local community but within the U.S. Eight percent indicated that the majority of their customers come from outside the U.S., the largest percentage of any market surveyed in the report.
Additionally, three in five Miami small business owners believe the local (58 percent) and national (59 percent) economy play a significant role, while only 35 percent believe the global economy has a substantial impact.
"Miami's economy is directly tied to major macro-economic issues and the ability to engage easily with businesses overseas," said Odalis Martinez, Small Business Banking manager, Bank of America. "Our small business owners play a critical role in the growth of Miami as one of America's most significant international business destinations. This is one of the many reasons why Bank of America remains committed to Miami small business owners - so they can continue to build revenue, create jobs and expand their business relationships."
Black Friday has little impact on bottom line
Miami small business owners see little to no benefit from Black Friday and Cyber Monday. Ninety-four percent of Miami small business owners say that Black Friday has either a minor or no impact on their business's bottom line, and 82 percent believe Cyber Monday is overhyped and has no significance to their bottom line.
Larger businesses: asset or adversary?
When questioned about their relationship to larger businesses, only one in six (13 percent) respondents views larger businesses as their biggest competitors. Seventy-eight percent indicate they have larger businesses as customers, and 49 percent say that larger businesses motivate them to become better small business owners.
From a competitive perspective, Miami small business owners cite a number of factors that drive customers to choose them over larger businesses, including customer service (72 percent), reliability/trust (64 percent) and quality (63 percent). More than one-third (37 percent) believe customers choose them because they are local.
Miami small business owners are well capitalized heading into 2013
Sixty-one percent of respondents believe they have enough access to capital to effectively run their business, and only 12 percent said that they applied for a business loan over the past year. Despite their optimistic views for growth in the coming year, 79 percent do not intend to apply for a business loan in 2013.
Who small business owners turn to for financial guidance
Forty percent of Miami small business owners describe themselves as "very savvy" regarding financial matters. When seeking advice, they tap into a broad network for help, including accountants/bookkeepers (65 percent), financial advisors, (52 percent), their banker (48 percent) and other small business owners (47 percent).
"At Bank of America, it's never been more important for us listen to our small business clients' concerns, ambitions and desire for more expertise rooted in the unique needs of the market," said Steve Turner, Southeast region sales executive for Bank of America. "Through the recent hiring of more than 50 small business bankers in South Florida, we are able to provide locally relevant counsel to small business owners and assist them with their cash flow management needs, making it easier for them to achieve the business goals they have for themselves in 2013."
Bank of America has continued to actively lend to small businesses across the U.S. and Florida. Through September, Bank of America has extended $1.45 billion in credit across Florida to small businesses - this includes $597.4 million in new originations, which 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 a complete, in-depth look at the insights of the nation's small business owners, please read the entire fall 2012 Small Business Owner Report and for additional Miami-based insights, download the Small Business Owner Report Miami infographic.
About the Bank of America Small Business Owner Report
Braun Research conducted the Bank of America Small Business Owner Report survey by phone between Sept. 9 and Oct. 7, 2012, on behalf of Bank of America. Braun contacted a nationally representative sample of 1,003 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, and +/- 5.7 percent for the oversampled markets, with both reported at a 95 percent confidence level.
Bank of America
Bank of America is one of the world's largest 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 more than 55 million consumer and small business relationships with approximately 5,500 retail banking offices and approximately 16,300 ATMs and award-winning online banking with 30 million active 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 more than 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 (NYS: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
For more Bank of America news, visit the Bank of America newsroom.
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.
© 2012 Bank of America Corporation. All rights reserved.
Reporters May Contact:
T.J. Crawford, Bank of America, 1.646.855.3301
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