Florida Small Business Index
2016 Quarter 1 Survey Results
Presented by the Florida Chamber of Commerce Small Business Council
March 2016
About the Florida Chamber’s Small Business Council
Florida’s small businesses are essential to the continuing recovery of the Florida economy. The
Florida Chamber’s Small Business Council works directly with state and national leaders to pass
important legislation such as reducing the business rent tax and reducing the cost of healthcare.
The Florida Chamber’s Small Business Council provides a unified voice for all small businesses
in our mission to secure Florida’s future. Participants meet with legislators, contact media, and
testify before both Florida’s House and Senate on issues important to small businesses.
Survey Overview
Many in Florida’s small business community are experiencing both challenges and successes
as our economy grows. As we work to secure Florida’s future, it is crucial that the Florida
Chamber of Commerce understand what issues are most important to small businesses.
The purpose of the Small Business Index Survey is to track trends and issues affecting small
businesses in Florida. Small business owners are surveyed in order to monitor small business
trends and identify emerging issues that may be addressed by the Florida Chamber’s Small
Business Council. The Council’s previous surveys were performed in May 2010, September
2010, February 2011, July 2011, March 2012, June 2012, September 2012, December 2012,
April 2013, July 2013, September 2013, January 2014, May 2014 and August/September 2014,
May 2015, September 2015, and December 2015/January 2016.
This survey is a nonscientific, random sampling of small business owners in Florida. It was
conducted March 8, 2016 through March 24, 2016, and received 88 responses. The electronic
survey was e-mailed to small businesses in Florida; and distributed by local chambers of
commerce throughout the state; and posted on social media including Facebook and Twitter.
Of those responding:
• 33% of respondents employ less than 5 employees;
• 46% employ 5 to 49 employees;
• 5% employ 50 to 99 employees; and
• 16% employ 100 to 500 employees.
Additionally:
• 76% of respondents employ less than 5 part-time employees;
• 18% employ 5 to 49 part-time employees;
• 0% employ 50 to 99 part-time employees; and
• 6% employ 100 or more part-time employees.
2
Survey Analysis
Although financial markets have been reasonably calm during much of the time this
survey was available for response, “Economic Uncertainty” remains the top issue facing
Florida’s small businesses, according to 19 percent of respondents. “Workforce
Quality”, moved to second place on the list, with 15 percent of respondents citing it as
their top issue. Third on this quarter’s survey is “Access to Capital”, with 13 percent of
respondents indicating that it was their top issue. “Government Regulations” is the most
important concern for 10 percent of the respondents, with “Healthcare Costs” at 8
percent, and “Lawsuit Abuse” being the most important issue for 6 percent of
respondents.
The top six issues - “Economic Uncertainty”, “Workforce Quality”, “Access to Capital”,
“Government Regulations”, “Healthcare Costs”, and “Lawsuit Abuse” - cover the top
concerns of 71 percent of small businesses taking the survey in the 1st quarter of 2016.
Economic conditions continue to show increased uncertainty, especially from the
international sector, including recession in Brazil, the strong dollar, and weakening
international demand. However, a majority of respondents expect increased sales
during the upcoming year. According to respondents demand appears to be softening
with only 53 percent indicating sales were up over the same period last year, compared
to 65 percent during the past survey. As respondents look forward to the near-term
future, 63 percent expect their company’s sales to improve during the upcoming 12months, however that is down from 79 percent in the previous survey.
Small Business Employment Outlook:
•
•
•
54 percent of respondents expect to hire in the next six months – that includes
those that plan to hire either a few (48%) or many (6%)
Only 1 percent expect to lay off employees in the next six months, which is the
same percentage as the last survey
87 percent said economic uncertainty and lack of sales are the leading obstacles
preventing their small business from hiring new employees, the same as
indicated in the last survey.
An indicator of further business expansion in Florida, 53 percent of businesses plan to
increase investments in plants or equipment, up from 50 percent in the previous survey.
Of those respondents that indicated they needed financing during the past 6 months, 80
percent were able to obtain it. Looking forward to the next 6 months, 62 percent of
respondents that use financing indicate that they expect financing to be more difficult to
obtain. Another concern of Florida small businesses is that 12 percent of respondents
indicate that they expect their sales to drop over the next year, which is higher than the
8 percent from the previous survey.
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Survey Results
Comparisons
Q1: Top issues facing Florida small businesses today:
1.
2.
3.
4.
5.
6.
Economic Uncertainty – 19%
Workforce Quality – 15%
Access to Capital – 13%
Government Regulations – 10%
Healthcare Costs – 8%
Lawsuit Abuse – 6%
Q4:
Company Sales Over the Last 3 Months
Compared to the Same Period Last Year
Higher
Lower
Unchanged
53%
23%
24%
4
Q5:
Company Sales Over the Last 3 Months as
Compared to Prior 3 Months
Higher
Unchanged
Lower
51%
32%
17%
Q6:
How Do You Expect the Economy Will Change
Over the Next Year?
3%
10%
10%
Improve Significantly
Improve Slightly
Remain Unchanged
29%
48%
Weaken Slightly
Weaken Significantly
5
Q7:
How Do You Expect the Economy Will Change
Over the Next 3 Years?
3%
18%
18%
Improve Significantly
Improve Slightly
6%
Remain Unchanged
Weaken Slightly
Weaken Significantly
55%
Q8:
How Do You Expect Your Company's Sales
Will Change Over the Next 3 Months?
Increase
Remain Unchanged
Decrease
61%
30%
9%
6
Q9:
How Do You Expect Your Company's
Sales Will Change Over the Next Year?
Increase
Remain Unchanged
Decrease
63%
25%
12%
Q10:
Does your company do business
internationally?
30%
Yes
No
70%
7
Q12:
Employment Plans During the Next
Six Months
1%
0%
7%
6%
Hire many new employees
Hire few new employees
Maintain current workforce
Lay off few employees
38%
48%
Lay off Many Employees
Not Sure
Q13:
Top obstacles preventing you from hiring
new employees?
4%
Economic Uncertainty
8%
Lack of Sales
6%
49%
33%
Too Much Regulation
Requirements of the federal
health care bill
Uncertainty about what state
government will do next
8
Q14:
Plans to Increase Investments in Plant
or Equipment
Yes, less than 6 months
Yes, more than 1 year
No, does not apply
Yes, 6-12 months
No, no plans
36%
20%
23%
11%
10%
Q15:
Is Your Business Better Off Today Than It
Was Six Months Ago?
Much Better
42%
4%
Better
Same
Worse
Much Worse
41%
9%
4%
9
Q16:
Overall, how reasonable are state
government regulations of small businesses
today?
3%
10%
Very Reasonable
Somewhat Reasonable
35%
52%
Somewhat Unreasonable
Very Unreasonable
Q17:
Worried about regulations, restrictions and taxes that
have been put on your business in Tallahassee, negatively
impacting your ability of do business?
Not at all worried
Not very worried
Somewhat worried
Very worried
40%
34%
22%
4%
10
Q19:
Confidence in the Direction the State is
Taking to Make Florida a Better Place to
Conduct Business
Very Confident
Confident
Neutral
27%
Somewhat Confident
Not Confident
28%
24%
21%
0%
Q21:
Able to Obtain Financing During
the Last 6 Months
Yes
No
I did not need capital financing
48%
42%
10%
11
Q22:
Ability to Obtain Financing During the
Next 6 Months
Easier
Harder
Not Applicable
49%
32%
19%
12