After ending 2018 on a high note, small business owners are optimistic about the year ahead. Small business owners reported confidence in the economy and their hiring plans. But how will the tightest labor market in decades impact their search for talent? Sharon Miller discusses this and more from the Fall 2018 Small Business Owner Report.




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Sharon Miller:            Most business owners expect that the end of this year, their revenue expectations for 2018, 80% of them believe that their year-end revenue will exceed 2017, and that's pretty powerful. So, they're thinking this year's better than last year, and they're thinking next year will be even better.


Narrator:                    Welcome to “The Heartbeat of Main Street” with ForbesBooks at ForbesBooks.comand Bank of America at


Kate Delaney:            It's always a good time when we can be joined by Sharon Miller on the show, Bank of America, head of Small Business. She's here with some great news about small business. The US small business sector looks to end 2018 on a pretty high note according to the Fall 2018 Bank of America Business Advantage Small Business Owner Report. Sharon, so first of all, thanks so much for joining us.


Sharon Miller:             Thank you so much for having me.


Kate Delaney:            We have all kinds of questions and it sounds like entrepreneurs and small business owners are feeling really good about the economy. So, what are their expectations for revenue growth and hiring for 2019?


Sharon Miller:            Well, confidence in the economy, it does remain strong and their revenue expectations, the confidence in the economy, hiring plans, all of that is up since last fall, so we do see an uptick in positive sentiment from business owners and by all accounts, from our most recent survey, the confidence remains very, very strong.


Gregg Stebben:         I know we've asked you this before, Sharon, but I'm going to ask again just for anyone who hasn't caught our earlier discussions about previous reports, how is it that you do these reports and compile this data, because I think it's really helpful for people to understand where this information is coming from.


Sharon Miller:             So we survey 1,000 small business owners across the country and we do it twice a year. It's from all different types of industries, from all different types of sectors and geographies so that we can really get a pulse on how business owners are feeling.


                                   At Bank of America, we have 3.3 million small business clients that we serve, and so every single day we're sitting down with business clients understanding, are you looking to expand your business?Do you want to apply for a loan? How is your working capital? What about your cash flow? These are the questions and discussions we're having every single day. But then we go in twice a year and we want to make sure that, you know, this is how the sentiment is across the United States, and we over-survey in 10 major markets as well, just to see if there's some geographic differences.


                                   And by all accounts the whole country is very strong. We see very strong optimism and sentiment from business owners—hiring is there, plans to apply for a loan, that's up, and so all of the different aspects of the report that we're asking, they look better than they did the last six months.


Kate Delaney:            Sharon, it's fascinating how you pull all this together, and talking about the 10 major markets and compiling all that information. When you do that, and since you've had such great success with it, this is just kind of a sidebar question, and I think the listeners will find this fascinating: Do you then go back and recalculate, okay, something's changed here or something's moved here with business, so we're going to instead focus on this area? How do you do that when you go into the next year and you plan for the next time around?


Sharon Miller:            Well, it's the basis of everything we do. I mean, we have to listen to our clients. We need to understand what's happening in the economy, how business owners are feeling, and so we adjust our ongoing continuing education for our bankers. We may adjust the types of information that we're delivering in that city because we operate in 90 local markets across the country and we know that every market is unique. And so, I'm sitting here today in San Antonio, Texas, and there's a lot of building. There's a lot of growth happening, hiring, expansion, and we have a heavy oil industry. We've got a diversified economy, we’ve got financial services here, we've got a lot of tourism. And you may go to another city and it may be very strong in technology, whereas San Antonio, the number one cyber security university sits in our backyard here at University of Texas San Antonio.


                                  In San Jose, California, you've got an incubator of high tech and what's happening with the newest wave of devices, so every city's a little different and we want to make sure that we're training our bankers to be able to interact and not just interact with clients, but to get ahead of them and to help them think through their business plan. What's next? Should you apply for a loan, should you use your working capital, what can you expect in the year ahead? And so, that's where we have and use these insights every single day to plan for the year ahead and quite frankly, the next three to five years.


Gregg Stebben:         We're talking with Sharon Miller. She's the head of Small Business for Bank of America. We're talking about the Fall 2018 Bank of America Business Advantage Small Business Owner Report, a report they do twice a year.


                                    And Sharon, whenever business people get together and whenever there's headlines about business and the health of businesses, there's a couple of issues that always come up, especially in 2018, 2019, and two of those issues are taxes and healthcare. What did you find small business owners thinking and doing, and what would they like to see change there when it comes to those two issues, taxes and healthcare?


Sharon Miller:            Sure. So, as far as healthcare is concerned, we've been doing this survey for the past six years and for every single survey result, healthcare is the top of the list of concerns for business owners.


                                  While healthcare costs remain the top concern during this survey, what we found—and that was at 63% of business owners, they’re concerned about the cost of healthcare, about the complexity—this has dropped to the lowest level at 63% in the six years of this history of the survey. So, that's actually down nine percentage points from the fall of 2017.


                                   So, while it remained a top concern in the fall of '17, 72% of business owners were very, very concerned. This time 63%. So it's dropped nine percentage points from our last survey. But again, it's the number one concern.


                                   When it comes to your taxes and concern over corporate taxes, that also reached a five year low. And this was at 37% this fall, and that's down 14 percentage points from the fall of 2017. So, although there are concerns and these are still the top two concerns of business owners, it's dropped significantly since last survey.


Kate Delaney:            Sharon, when you look at that, what are some of the other things that small business owners are concerned about? What else is on their mind?


Sharon Miller:            You know, there's concern about trade policy, tariffs, there is concern about commodities prices, the dollar, the stock market, compliance and government regulation. So, all the things that I sort of bucket into, as really not controllable for business owners. And so these are things going on around them in the economy and the broader market, they have a lot of control over their business plan, around their business. But a lot of these issues and we can't control what's going to happen with the stock market. It's up, it's down, it's going, it's cyclical.


                                   And certainly with tax rates, where the government is setting those. So yes, we got to get out and vote, we've gotta do all those things. But when it comes to can a business owner directly control that? They can't, and so the focus in my conversations with business owners, it's about their business, how do they, in spite of everything going on around them, continue to drive forward, to grow and expand and do better this year than they did last year?


                                   And most business owners expect that the end of this year, their revenue expectations for 2018, 80% of them believe that their year-end revenue will exceed 2017, and that's pretty powerful. So, they're thinking this year's better than last year and they're thinking next year will be even better. And so, that to me is what they can directly control.


Gregg Stebben:         I love hearing about that kind of optimism. We're talking with Sharon Miller, the head of Small Business for Bank of America and the Fall 2018 bank of America Business Advantage Small Business Owner Report. It's interesting, Sharon, you mentioned what are the things that business owners can and cannot control? Well, one of the things they can control, I would think, is how they make it through a period where hiring is so challenging and so competitive. What kinds of things did you hear from small business owners there?


Sharon Miller:            Well, they are experiencing it. You're right. We are in one of the tightest job markets out there. Unemployment rate falling to 3.7%. That's the lowest since 1969. So, that was in September where we had the 3.7% unemployment rate. We are at a historical time within our economy where you know, if you want to work, you're employed. And so, it's really up to the business owners that need to focus on retention.


                                   And small businesses are experiencing a very high rate of personnel turnover. They are. I mean, just as in corporate America. So we're seeing more people going to different companies, whether it’s be they're getting more money, they get better benefits, whatever it might be. But I would say that what small business owners are thinking about in order to retain, they're talking about how do I implement a retirement package for my employees? How do I give them healthcare? How do I perhaps think about giving them a more flexible work culture?


                                   And so, there are some hiring challenges, but I think that when small business owners focus on the perks of what they can deliver, like flexible hours, maybe giving them some professional development and then when you go a step further and say why do people go to work for a small business? They go to work because they believe working at a small business has got some advantages, including the ability to have less bureaucracy. They have a more collaborative environment, more responsibility.


                                   When you're working in a company that has less than 100 employees, you're certainly going to have some greater responsibility and more impact or at least feel that you have more impact for that company. So, there can be some certainly some strategies that business leaders can implement over and above what they're doing, but I think they also have to go with what they already have and press that advantage, which is a smaller environment, less bureaucracy, more freedom for creativity, entrepreneurial and creativity development. All those things that really we hear from Millennials, from people entering the workforce. This is what they want. So, I think small business owners should be proud of that and this should be something that they can use to attract better employees.


Narrator:                    We’ve been talking with Sharon Miller, head of Small Business for Bank of America. This has been Part 1 of our interview with Sharon about the Fall 2018 Bank of America Business Advantage Small Business Owner Report. You can hear Part 2 of the interview on January 2nd, here on “The Heartbeat of Main Street” with ForbesBooks at ForbesBooks.comand Bank of America at



Stay tuned for part II

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