Survey: Business Confidence Up For 2011

Very interesting report just released on how BUSINESS OWNERS feel about prospects in the coming year... this cuts through the political posturing to get to the source... business owners.. Please email me at bf@beangroup.com and I'll send you a full copy of the report.  ~bf

Survey: Business confidence up for 2011

Business owners cautious but optimistic for 2011; employment will likely remain flat.

CONCORD, N.H. – Dec. 1, 2010 – Data from the recently completed RKM/BIA 2011 Business Outlook Survey shows that business owners are cautious but optimistic about the economy going into 2011; however, they expect current employment levels to remain the same.

Sponsored by the Business and Industry Association of New Hampshire and Portsmouth-based RKM Research and Communications, the seventh annual business outlook survey measured business confidence among a stratified random sample of 302 New Hampshire businesses. RKM polled 101 businesses with less than 10 employees and 201 with 10 or more employees, Oct. 14 – Nov. 12.

The survey assessed business confidence using four indexes to predict future outcomes – economic conditions, employment, revenue and capital expenditures – and benchmarked the index scores against survey results from previous years. The 2011 survey shows:

§  While New Hampshire businesses do not expect overall economic conditions to improve significantly, confidence remains steady going into 2011. Forty-seven (47) percent of businesses expect economic conditions to get better in 2011, 29 percent expect them to stay the same and 16 percent expect them to get worse. Last year, 48 percent of businesses expected economic conditions to get better, 31 percent expected them to stay the same and 16 percent expected conditions to worsen.

§  The large majority of businesses expect their number of employees to stay the same in the next 12 months; however, numbers are improved from last year. In 2011, 19 percent of businesses expect the overall number of employees working at their company to increase, while 73 percent expect it to stay the same and 4 percent expect it to decrease. Last year, 13 percent of businesses expected the overall number of employees working at their company to increase, 78 percent expected it to stay the same and 4 percent expected it to decrease.

§  Future revenue expectations have improved from last year. Forty-eight (48) percent of businesses expect their annual revenue to increase in 2011, as compared to 36 percent in 2010. In 2011, 27 percent expect revenue to stay the same and 18 percent expect it to decrease. Last year, 40 percent expected revenue to stay the same and 18 percent expected it to decrease.

§  Expectations for future capital expenditures improved significantly from 2009. The Index of Future Capital Expenditures is 58.4 in 2010, up from 49.5 in 2009. This is the highest this index has been since 2006 (59.5). Thirty (30) percent of businesses expect their capital expenditures to increase in 2011, 57 percent expect them to remain unchanged and only 9 percent expect to spend less on capital investments. Last year, 24 percent of businesses expected capital expenditures to increase, 50 percent expected them to stay the same and 22 percent expected to spend less on capital investments.

Survey respondents were also asked to identify top concerns facing their business in the coming year. Poor economic conditions again topped the list with 37 percent of business owners citing it as their top challenge for 2011. Eight (8) percent of respondents identified the high cost of health insurance as the second ranked business challenge, followed by high business taxes as number three (7 percent of respondents).

Other concerns include the lack of capital, poor weather conditions, high interest rates, too many environmental regulations, government regulation, lack of qualified labor and foreign competition.

According to Jim Roche, president of the Business and Industry Association, the survey results confirm a challenging environment for most businesses. “While officially in ‘recovery,’ the economy remains uncertain. Business owners and managers view 2011 with a strong degree of cautious optimism.”

“Now, more than ever, it is crucial to support business-friendly policies in our state,” continued Roche. “The private sector is on the road to revitalizing New Hampshire’s economy. It is critical to keep New Hampshire’s cost of doing business as low as possible if we are to encourage business investment and job growth.”