The American Express OPEN Small Business Monitor, released each spring and fall since 2002, is based on a nationally representative sample of small business owners/managers of companies with fewer than 100 employees.

Noteworthy Arizona business owner highlights are as follows:

• More than three-quarters (77%) say they are “very happy” with their lives
• More than three-quarters of entrepreneurs (76%) are confident they can access the capital they need to build their business
• They have a similarly positive outlook for their business prospects over the next six months (56%), when compared with their counterparts in the West (56%) and business owners overall (54%)
• They are less likely to plan to make capital investments over the next six months, (47%) compared to business owners overall (55%) and in the West (54%)
• Just forty-five percent say that the economy stresses them out
• They are less likely (39%) to report having cash flow issues than business owners overall (49%) and in the West (41%)
• They are less likely to say they are on track to save the funds they need for retirement (37%) when compared to business owners overall (54%) and in the West (46%)

o   On average business owners believe they will need $1,250,000 to retire

• One-in-five say that their business is “Riding High” and they have grown their business despite the effect of the economy (20% vs. 14% in the West and 11% of business owners overall)
• They are much less likely to plan to hire within the next six months (13%) than business owners in the West and overall (each, 35%)
• Over the last three years, on average they have experienced nine percent revenue growth compared to seventeen percent growth experienced by business owners in the West and fourteen percent overall

Business Outlook and Managing the Economy

According to the Monitor, Arizona business owners’ have a similarly positive outlook for their business prospects over the next six months (56%), when compared with their counterparts in the West (56%) and business owners overall (54%).  Just forty-five percent say that the economy stresses them out. The most important priorities for Arizona business owners are growing their business and keeping/maintaining current business and sources of revenue (each, 37%).

One-in-five Arizona business owners say that their business is “riding high” and they have grown their business despite the effect of the economy (20% vs. 14% in the West and 11% of business owners overall). Over the last three years, Arizona entrepreneurs on average experienced nine percent revenue growth compared to seventeen percent growth experienced by business owners in the West and fourteen percent overall. The biggest challenges to growth are the uncertain economy and the fact that they are too busy satisfying existing customers to find new ones (29%, each).

More than half (54%) of entrepreneurs say membership in a community of growth-focused business owners would be helpful in growing their business and one third (33%) say “connections”—understanding the power of networking as a key to running a thriving business are most important to be able to grow.

Hiring Plans and Employees

Arizona business owners are much less likely to plan to hire within the next six months (13%) than business owners in the West and overall (each, 35%). Nearly three-quarters of business owners (72%) say they hire as needed when the business grows, as opposed to hiring in order to grow the business (just, 10%).

Thinking about which position they would like to fill that would most help in their business, social media expert (21%) is the clear winner, followed by accountant/bookkeeper (10%), staff (8%), marketing/ advertising person (7%), secretary /receptionist (6%), assistant (5%), sales person (4%) and  technician or publicist (each, 3%).

Nearly one-third (31%) of Arizona business owners say their business mantra is “you are only as good as your people.”  More than six-in-ten (61%) say they communicate openly with employees about the health of their business. A greater number, more than seven-in-ten (72%) say their employees productivity has increased over the last year.  Forty-three percent offer healthcare benefits to employees.

Addressing Cash Flow Issues and Profitability

Arizona business owners are less likely (39%) to report having cash flow issues than business owners overall (49%) and in the West (41%). Twenty percent of entrepreneurs cite the ability to pay bills on time as their biggest concern, followed by having enough cash to win new business (7%), accounts receivable (6%) and the ability to meet payroll and the ability to accurately track cash flow (each, 3%).

In order for their business to achieve a desired level of profitability, fifty-four percent of Arizona entrepreneurs say they don’t need to raise prices, thirty-seven percent need to raise prices over the next six months but can’t due to market constraints and six percent need to raise prices to achieve profitability and will do so.

Investments in the Company

Arizona business owners are less likely to plan to make capital investments over the next six months, (47%) compared to business owners overall (55%) and in the West (54%).  For Arizona entrepreneurs technology investments lead the category (31%). Additional investments include office equipment (14%), office furnishings (8%), real estate investments (7%) and manufacturing/productionequipment (6%).

More than three-quarters of entrepreneurs (76%) are confident they can access the capital they need to build their business.

Connecting with Customers and Giving Back to Community

Nearly all (98%) Arizona business owners say providing good customer service is essential to their business success. Sixty percent analyze customer or other data for their business.  The biggest barrier to implementing data analytics is time (54%). Seventy-three percent see the value in analyzing data (sales, customer/other) to better reach their customers and sixty-five percent says data analysis makes their marketing more effective.

Nearly nine-in-ten (88%) Arizona entrepreneurs say their local community is small business friendly.  A similar number (87%) say they give back to their community by donating time, money or merchandise.

Social Media Usage

Among the nearly six-in-ten Arizona business owners (57%) who use social media for their business, the greatest number are using Facebook (41%) followed by Google+ (24%), LinkedIn (23%), Twitter (20%), Instagram (14%), foursquare (12%), YouTube (8%), blogs (7%) and Pinterest (5%).  The top reason Arizona business owners use social media to drive sales (42%).Twenty-nine percent say that social media has helped their business survive in a challenging economy. Thirty-five percent say they plan to increase their company’s focus on social media over the next year but sixty-four percent say social media is a “time-suck” or burden.

Work/Life Balance

Eighty-three percent of business owners in Arizona say the rewards being an entrepreneur outweigh the demands. More than three-quarters (76%) say they are “very happy” with their lives and eighty-two percent attribute their happiness entirely or somewhat to being an entrepreneur. Arizona entrepreneurs are more likely to discuss business with their spouse or significant other than business owners overall (88% vs. 83%). Sixty-nine percent say their spouse/significant other has an accurate picture of their business’ finances.

Retirement

Arizona business owners are less likely to say they are on track to save the funds they need for retirement (37%) when compared to business owners overall (54%) and in the West (46%). More than six-in-ten (61%) are worried about their ability to save for retirement. On average business owners believe they will need $1,250, 000 to retire. Fifty-four percent say they will need to work longer and put off retirement due to the economy/recession.

                                                                                                                                    Survey Methodology                                                                                                                                    American Express OPEN Small Business Monitor, released each spring and fall, is based on a nationally representative sample of 1150 small business owners/managers of companies with fewer than 100 employees. The anonymous survey was conducted via telephone by Ebiquity February 24-March 18, 2014. The poll has a margin of error of +/- 3.0%.

States within the West include Montana, Wyoming, Idaho, Nevada, Utah, Colorado, Arizona, California, New Mexico, Washington, Oregon and Arizona.