Small-Business Conditions

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

View the data below for more information on the 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 31 3.0 3.0 3.0
Supportive 298 28.4 28.4 31.4
Neutral 299 28.5 28.5 59.9
Not Supportive 189 18.0 18.0 77.8
Not at All Supportive 96 9.1 9.1 86.9
DK 127 12.1 12.1 99.0
Refuse 10 1.0 1.0 100.0
Total 1050 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 118 11.2 11.2 11.2
Good 442 42.1 42.1 53.3
Just OK 335 31.9 31.9 85.3
Poor 95 9.0 9.0 94.3
Very Poor 32 3.1 3.1 97.4
DK 26 2.5 2.5 99.8
Refuse 2 .2 .2 100.0
Total 1050 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 59 5.6 5.6 5.6
Slowly Improving 147 14.0 14.0 19.7
Improving 42 4.0 4.0 23.6
Stable 629 59.9 59.9 83.6
Deteriorating 41 3.9 3.9 87.5
Slowly Deteriorating 71 6.8 6.8 94.3
Rapidly Deteriorating 29 2.8 2.8 97.0
DK 29 2.8 2.8 99.8
Refuse 2 .2 .2 100.0
Total 1050 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 480 45.7 45.7 45.7
No 555 52.9 52.9 98.6
DK 15 1.4 1.4 100.0
Total 1050 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 406 38.7 38.7 38.7
No 621 59.2 59.2 97.8
DK 23 2.2 2.2 100.0
Total 1050 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 406 38.7 38.7 38.7
No 623 59.3 59.3 98.0
DK 20 1.9 1.9 99.9
Ref 1 .1 .1 100.0
Total 1050 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 202 19.2 19.2 19.2
No 845 80.5 80.5 99.7
DK 3 .3 .3 100.0
Total 1050 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 222 21.1 21.1 21.1
Fallen 48 4.5 4.5 25.7
Stayed the same 711 67.7 67.7 93.4
DK 61 5.8 5.8 99.2
Ref 8 .8 .8 100.0
Total 1050 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 545 51.9 51.9 51.9
Benefits 276 26.2 26.2 78.1
Both the same 71 6.7 6.7 84.8
Neither 83 7.9 7.9 92.7
DK 71 6.7 6.7 99.4
Ref 6 .6 .6 100.0
Total 1050 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 194 18.5 18.5 18.5
Increased Somewhat 353 33.6 33.6 52.1
Increased [no amount] 42 4.0 4.0 56.1
About the Same 415 39.5 39.5 95.6
Decreased [no amount] 7 .6 .6 96.3
Decreased Somewhat 4 .4 .4 96.6
Decreased a Lot 0 .0 .0 96.7
DK 34 3.3 3.3 99.9
Ref 1 .1 .1 100.0
Total 1050 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 50 4.8 4.8 4.8
Increased Somewhat 165 15.7 15.7 20.5
Increased [no amount] 24 2.3 2.3 22.7
About the Same 726 69.2 69.2 91.9
Decreased [no amount] 11 1.1 1.1 93.0
Decreased Somewhat 20 1.9 1.9 94.9
Decreased a Lot 2 .2 .2 95.0
DK 45 4.3 4.3 99.4
Ref 7 .6 .6 100.0
Total 1050 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. 386 36.7 36.7 36.7
All of my credit needs were NOT satisfied. 88 8.3 8.3 45.1
I did not want to borrow. 515 49.0 49.0 94.1
DK 59 5.6 5.6 99.7
Ref 3 .3 .3 100.0
Total 1050 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 130 12.4 12.4 12.4
Good 421 40.1 40.1 52.5
Just OK 344 32.8 32.8 85.3
Poor 83 7.9 7.9 93.2
Very Poor 18 1.7 1.7 94.9
DK 47 4.5 4.5 99.4
Ref 7 .6 .6 100.0
Total 1050 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 82 7.8 7.8 7.8
Good 372 35.4 35.4 43.3
Just OK 414 39.4 39.4 82.7
Poor 109 10.4 10.4 93.1
Very Poor 28 2.6 2.6 95.7
DK 40 3.8 3.8 99.5
Ref 5 .5 .5 100.0
Total 1050 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 561 53.4 53.4 53.4
No 381 36.3 36.3 89.7
DK 99 9.4 9.4 99.1
Ref 9 .9 .9 100.0
Total 1050 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 133 12.6 12.6 12.6
No 889 84.7 84.7 97.3
DK 28 2.7 2.7 100.0
Ref 0 .0 .0 100.0
Total 1050 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 234 22.3 22.3 22.3
Good 437 41.7 41.7 63.9
Just OK 270 25.7 25.7 89.7
Poor 36 3.5 3.5 93.1
Very Poor 18 1.8 1.8 94.9
DK 52 4.9 4.9 99.8
Ref 2 .2 .2 100.0
Total 1050 100.0 100.0

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Q18. Why do you think so?

Frequency Percent Valid Percent Cumulative Percent
Valid Sales prospects 283 26.9 42.1 42.1
Lower costs 37 3.5 5.5 47.6
Price increases 30 2.9 4.5 52.1
Greater productivity, such as better equipment or a great hi 113 10.8 16.9 69.0
Government policies, such as regulations and taxes 32 3.1 4.8 73.8
SEASONAL WEATHER 58 5.6 8.7 82.5
Other 53 5.0 7.9 90.4
DK 61 5.8 9.1 99.5
Ref 4 .3 .5 100.0
Total 671 63.9 100.0
Missing System 379 36.1

Total 1050 100.0


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Q19. Why do you think so?

Frequency Percent Valid Percent Cumulative Percent
Valid Sales prospects 14 1.4 26.1 26.1
Cost increases 8 .7 14.2 40.3
Pressure on selling prices 2 .2 3.3 43.6
Lower productivity, such as loss of a key employee or aging 2 .2 3.3 46.9
Government policies, such as regulations and taxes 13 1.3 24.5 71.5
SEASONAL WEATHER 3 .3 5.0 76.4
Other 11 1.1 20.1 96.6
DK 1 .1 1.8 98.3
Ref 1 .1 1.7 100.0
Total 55 5.2 100.0
Missing System 995 94.8

Total 1050 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 90 8.6 8.6 8.6
Taxes 114 10.9 10.9 19.5
Employee quality or costs 107 10.2 10.2 29.7
Insurance 141 13.4 13.4 43.1
Big business competition 168 16.0 16.0 59.2
Inflation and rising prices 132 12.6 12.6 71.7
Credit availability or interest rates 29 2.8 2.8 74.5
Regulations Red tape 79 7.6 7.6 82.1
Other 52 5.0 5.0 87.1
DK 69 6.6 6.6 93.7
Ref 33 3.1 3.1 96.7
NONE NO PROBLEMS 34 3.3 3.3 100.0
Total 1050 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 67 6.4 6.4 6.4
Somewhat satisfied 427 40.6 40.6 47.0
Not too satisfied 268 25.5 25.5 72.5
Not at all satisfied 182 17.3 17.3 89.8
DK 97 9.2 9.2 99.0
Ref 10 1.0 1.0 100.0
Total 1050 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 144 13.7 13.7 13.7
Fills jobs that otherwise wouldn't be filled 301 28.7 28.7 42.4
Crowds out American workers 94 9.0 9.0 51.4
No appreciable role 302 28.8 28.8 80.1
DK 177 16.9 16.9 97.0
Ref 31 3.0 3.0 100.0
Total 1050 100.0 100.0
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