MIAMI--(BUSINESS WIRE)--The majority of Miami’s small business owners (55 percent) believe 2011 will be better than 2010, with 30 percent believing it will be the same as last year and only 15 percent expecting it will be worse, according to the latest Citibank small business survey. The survey’s findings show that after battling through the recession, many of Miami’s entrepreneurs feel confident about the coming year and are finally poised for growth.
Moreover, despite the challenging conditions over the last few years, Miami small business owners remain passionate about their choice of career, with 78 percent saying they would start their business again even if they knew then what they know now about the challenges they would face, and 71 percent saying they would recommend entrepreneurship as a career to their children.
“Despite the recent economic challenges, our study reveals a resiliency and optimism among Miami’s small business owners that is encouraging as we move into 2011,” said Raj Seshadri, the head of Small Business Banking at Citibank. “Miami’s entrepreneurs are among the most confident in the nation about the coming year, offering strong evidence that the economic recovery is picking up steam in South Florida.”
Business owners in Miami operate in a unique, international market, which is likely fueling some of the optimism among the area’s entrepreneurs, added Seshadri.
Business Environment Full of Unknowns
Of course, from unemployment to the rising costs of running a business, Miami entrepreneurs still face many unknowns.
Business owners say rising raw material prices (20 percent) and the increasing cost of healthcare (20 percent) pose the biggest challenges in 2011. In addition, Miami’s entrepreneurs appear split when asked about the condition of their business, with 37 percent saying their business is the same as last year, 32 percent saying it is better and 31 percent saying it is worse.
When discussing what would make the most positive impact on their business this year, respondents cite reducing taxes (32 percent) and increasing credit availability (20 percent.) And though 68 percent of Miami’s small business owners remain concerned over another downturn in the economy, 76 percent say they are very or somewhat prepared.
Business Costs Expected to Rise, Hiring Plans Tepid
The majority of Miami’s small business owners (74 percent) say they plan to keep the same number of employees over the next 12 months. Twenty percent say they will increase employees and 5 percent say they will reduce jobs. When discussing what would spur hiring, 80 percent say increased sales.
On an array of expenses, the majority of respondents expect the costs of running their business to increase this year. According to the survey:
- 80 percent expect utility costs to rise
- 78 percent expect the cost of healthcare to increase
- 77 percent expect the cost of raw materials to rise
- 62 percent expect taxes to increase
- 61 percent expect the cost of borrowing to increase
At the same time, 65 percent do not expect to raise the prices they charge this year, compared to 35 percent who say they will raise prices.
To grow or improve their business in 2011, Miami small business owners plan to negotiate better prices from suppliers, vendors, or landlords (55 percent), work longer hours themselves (52 percent), or increase marketing (52 percent). More than half (51 percent) say they plan to offer new products or services in the coming year, while 47 percent plan to expand into new markets.
About the Survey
This Citibank poll was conducted via telephone by Abt SRBI from Jan. 11 to Jan. 28 among a national random sample of 188 small businesses in Miami, with revenue over $100,000 and no more than 100 employees. The margin of error is approximately +/- 7 percentage points. Surveys are subject to other error sources as well, including sampling coverage error, recording error, and respondent error.
About Citibank
Citibank is a member of Citi®, the leading global financial services company, which has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
© 2011 Citigroup Inc. Citibank, N.A., Member FDIC. Citi and Citibank and Arc Design are registered service marks of Citigroup Inc.
Tags/Keywords: Citi, Citibank, small business, entrepreneurs, start-up