Small-Business Conditions

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Southern California Small-Business Conditions, December 2005
12/01/2005

View the data below for more information on the Southern California Small-Business ConditionsSM survey for November 2005.
Q1. Do you consider the California business environment, including government officials, bankers, media outlets, community organizations, etc., to be highly supportive, supportive, neutral, not supportive or not at all supportive of small business?

Frequency Percent Valid Percent Cumulative Percent
Valid Highly Supportive 10 2.9 2.9 2.9
Supportive 94 26.9 26.9 29.7
Neutral 101 28.9 28.9 58.6
Not Supportive 61 17.4 17.4 76.0
Not at All Supportive 35 10.0 10.0 86.0
DK 45 12.9 12.9 98.9
Refuse 4 1.1 1.1 100.0
Total 350 100.0 100.0

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Q2. Do you believe that business conditions in your market area are CURRENTLY very good, good, just OK, poor, or very poor?

Frequency Percent Valid Percent Cumulative Percent
Valid Very good 37 10.6 10.6 10.6
Good 145 41.4 41.4 52.0
Just OK 111 31.7 31.7 83.7
Poor 33 9.4 9.4 93.1
Very Poor 12 3.4 3.4 96.6
DK 11 3.1 3.1 99.7
Refuse 1 .3 .3 100.0
Total 350 100.0 100.0

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Q3. Are they improving, deteriorating, or more or less stable?

Frequency Percent Valid Percent Cumulative Percent
Valid Rapidly Improving 18 5.1 5.1 5.1
Slowly Improving 45 12.9 12.9 18.0
Improving 16 4.6 4.6 22.6
Stable 212 60.6 60.6 83.1
Deteriorating 15 4.3 4.3 87.4
Slowly Deteriorating 23 6.6 6.6 94.0
Rapidly Deteriorating 9 2.6 2.6 96.6
DK 11 3.1 3.1 99.7
Refuse 1 .3 .3 100.0
Total 350 100.0 100.0

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Q4. Over the last three months, have you upgraded the technology or changed the processes you use in order to make your business more productive?

Frequency Percent Valid Percent Cumulative Percent
Valid Yes 166 47.4 47.4 47.4
No 178 50.9 50.9 98.3
DK 6 1.7 1.7 100.0
Total 350 100.0 100.0

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Q5. Over the last three months have you made one or more expenditures to purchase capital equipment or business vehicles, or to up-grade your facilities?

Frequency Percent Valid Percent Cumulative Percent
Valid Yes 132 37.7 37.7 37.7
No 208 59.4 59.4 97.1
DK 10 2.9 2.9 100.0
Total 350 100.0 100.0

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Q6. Over the last three months, have you made one or more expenditures directly or indirectly to train or upgrade the skills of one or more employees?

Frequency Percent Valid Percent Cumulative Percent
Valid Yes 139 39.7 39.7 39.7
No 202 57.7 57.7 97.4
DK 9 2.6 2.6 100.0
Total 350 100.0 100.0

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Q7. Do you currently have one or more job openings?

Frequency Percent Valid Percent Cumulative Percent
Valid Yes 71 20.3 20.3 20.3
No 278 79.4 79.4 99.7
DK 1 .3 .3 100.0
Total 350 100.0 100.0

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Q8. Over the last three months, has your average per employee payroll cost risen, fallen or stayed about the same?

Frequency Percent Valid Percent Cumulative Percent
Valid Risen 77 22.0 22.0 22.0
Fallen 13 3.7 3.7 25.7
Stayed the same 235 67.1 67.1 92.9
DK 22 6.3 6.3 99.1
Ref 3 .9 .9 100.0
Total 350 100.0 100.0

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Q9. Which cost pressures are greater for your business...

Frequency Percent Valid Percent Cumulative Percent
Valid Wages 185 52.9 52.9 52.9
Benefits 94 26.9 26.9 79.7
Both the same 19 5.4 5.4 85.1
Neither 25 7.1 7.1 92.3
DK 24 6.9 6.9 99.1
Ref 3 .9 .9 100.0
Total 350 100.0 100.0

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Q10. In the last three months, have the AVERAGE prices you paid for the goods and services purchased for your business increased, decreased or stayed about the same?

Frequency Percent Valid Percent Cumulative Percent
Valid Increased a Lot 62 17.7 17.7 17.7
Increased Somewhat 121 34.6 34.6 52.3
Increased [no amount] 18 5.1 5.1 57.4
About the Same 134 38.3 38.3 95.7
Decreased [no amount] 2 .6 .6 96.3
Decreased Somewhat 1 .3 .3 96.6
DK 12 3.4 3.4 100.0
Total 350 100.0 100.0

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Q11. In the last three months, have you increased, decreased or kept your AVERAGE selling prices about the same?

Frequency Percent Valid Percent Cumulative Percent
Valid Increased a Lot 17 4.9 4.9 4.9
Increased Somewhat 49 14.0 14.0 18.9
Increased [no amount] 8 2.3 2.3 21.1
About the Same 242 69.1 69.1 90.3
Decreased [no amount] 5 1.4 1.4 91.7
Decreased Somewhat 7 2.0 2.0 93.7
Decreased a Lot 1 .3 .3 94.0
DK 18 5.1 5.1 99.1
Ref 3 .9 .9 100.0
Total 350 100.0 100.0

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Q12. Which BEST describes your situation over the last three months?

Frequency Percent Valid Percent Cumulative Percent
Valid All of my credit needs were satisfied. 131 37.4 37.4 37.4
All of my credit needs were NOT satisfied. 34 9.7 9.7 47.1
I did not want to borrow. 169 48.3 48.3 95.4
DK 15 4.3 4.3 99.7
Ref 1 .3 .3 100.0
Total 350 100.0 100.0

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Q13. Over the last three months, have sales been...?

Frequency Percent Valid Percent Cumulative Percent
Valid Very Good 39 11.1 11.1 11.1
Good 137 39.1 39.1 50.3
Just OK 121 34.6 34.6 84.9
Poor 27 7.7 7.7 92.6
Very Poor 6 1.7 1.7 94.3
DK 17 4.9 4.9 99.1
Ref 3 .9 .9 100.0
Total 350 100.0 100.0

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Q14. Over the last three months, have profits been...?

Frequency Percent Valid Percent Cumulative Percent
Valid Very Good 28 8.0 8.0 8.0
Good 123 35.1 35.1 43.1
Just OK 136 38.9 38.9 82.0
Poor 40 11.4 11.4 93.4
Very Poor 10 2.9 2.9 96.3
DK 11 3.1 3.1 99.4
Ref 2 .6 .6 100.0
Total 350 100.0 100.0

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Q15. Could you increase sales by 10 percent WITHOUT purchasing new equipment or hiring more employees?

Frequency Percent Valid Percent Cumulative Percent
Valid Yes 188 53.7 53.7 53.7
No 120 34.3 34.3 88.0
DK 38 10.9 10.9 98.9
Ref 4 1.1 1.1 100.0
Total 350 100.0 100.0

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Q16. At this time are you actively involved or investing in the startup of another business, separate and distinct from this one?

Frequency Percent Valid Percent Cumulative Percent
Valid Yes 48 13.7 13.7 13.7
No 294 84.0 84.0 97.7
DK 8 2.3 2.3 100.0
Total 350 100.0 100.0

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Q17. What are the prospects for your business over the next several months?

Frequency Percent Valid Percent Cumulative Percent
Valid Very Good 76 21.7 21.7 21.7
Good 147 42.0 42.0 63.7
Just OK 88 25.1 25.1 88.9
Poor 11 3.1 3.1 92.0
Very Poor 7 2.0 2.0 94.0
DK 21 6.0 6.0 100.0
Total 350 100.0 100.0

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Q18. Why do you think so?

Frequency Percent Valid Percent Cumulative Percent
Valid Sales prospects 96 27.4 43.0 43.0
Lower costs 14 4.0 6.3 49.3
Price increases 9 2.6 4.0 53.4
Greater productivity, such as better equipment or a great hi 41 11.7 18.4 71.7
Government policies, such as regulations and taxes 11 3.1 4.9 76.7
SEASONAL WEATHER 14 4.0 6.3 83.0
Other 14 4.0 6.3 89.2
DK 23 6.6 10.3 99.6
Ref 1 .3 .4 100.0
Total 223 63.7 100.0
Missing System 127 36.3

Total 350 100.0


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Q19. Why do you think so?

Frequency Percent Valid Percent Cumulative Percent
Valid Sales prospects 6 1.7 33.3 33.3
Cost increases 3 .9 16.7 50.0
Government policies, such as regulations and taxes 5 1.4 27.8 77.8
Other 4 1.1 22.2 100.0
Total 18 5.1 100.0
Missing System 332 94.9

Total 350 100.0


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Q20. I am going to read you a list of possible business problems. What is the single most important problem facing your business today?

Frequency Percent Valid Percent Cumulative Percent
Valid Weak Sales 29 8.3 8.3 8.3
Taxes 39 11.1 11.1 19.4
Employee quality or costs 31 8.9 8.9 28.3
Insurance 43 12.3 12.3 40.6
Big business competition 64 18.3 18.3 58.9
Inflation and rising prices 49 14.0 14.0 72.9
Credit availability or interest rates 11 3.1 3.1 76.0
Regulations Red tape 24 6.9 6.9 82.9
Other 18 5.1 5.1 88.0
DK 21 6.0 6.0 94.0
Ref 9 2.6 2.6 96.6
NONE NO PROBLEMS 12 3.4 3.4 100.0
Total 350 100.0 100.0

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SS1. In general, how satisfied are you with the direction that California is headed? Are you very satisfied, somewhat satisfied, not too satisfied or not at all satisfied?

Frequency Percent Valid Percent Cumulative Percent
Valid Very satisfied 22 6.3 6.3 6.3
Somewhat satisfied 145 41.4 41.4 47.7
Not too satisfied 84 24.0 24.0 71.7
Not at all satisfied 59 16.9 16.9 88.6
DK 36 10.3 10.3 98.9
Ref 4 1.1 1.1 100.0
Total 350 100.0 100.0

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SS4. Which best describes the role immigrant labor plays in your area?

Frequency Percent Valid Percent Cumulative Percent
Valid Provides skills not otherwise available 47 13.4 13.4 13.4
Fills jobs that otherwise wouldn't be filled 93 26.6 26.6 40.0
Crowds out American workers 35 10.0 10.0 50.0
No appreciable role 105 30.0 30.0 80.0
DK 59 16.9 16.9 96.9
Ref 11 3.1 3.1 100.0
Total 350 100.0 100.0
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