Release Date: 09/ 01/ 2005
CONTACT: Vickie Agler, (303) 860-1778, or Nancy St. Pierre, (214) 614-3008
DENVER, Colo. -- Colorado’s small businesses experienced a significant lift in sales and profits as the small-business community continued to boost the state’s economy, according to the Colorado Small-Business ConditionsSM report released today by the National Federation of Independent Business, the nation’s largest small-business advocacy organization.
A net 13 percent more small-business owners reported good sales in August than in June; a net 12 percent more indicated that they had “good” profits. Positive economic trends continue for Colorado with a net 44 percent of small-business owners reporting they are optimistic about their business for the remainder of the year. The primary reason for their optimism is sales prospects.
“The NFIB research released today continued to prove that as small businesses experience growth and success, so does the economy,” said Vickie Agler, NFIB/Colorado state director. “Colorado’s economy has experienced steady growth throughout this year, and small businesses have played a crucial role in its continued health and strengthening of our economy.”
On the downside, small-business owners increasingly indicated their purchase prices are rising, while a decreasing number are passing those increases on to their consumers. In Colorado, a net 50 percent indicated their purchase prices increased over the last three months, a 16 percent jump from May; yet, only a net 17 percent increased selling prices in that time frame.
Energy and compensation costs are important drivers of the higher prices small-business owners face. However, immigrant labor appears less of an influence on the latter than may be thought. A majority of respondents indicated that immigrant labor was somewhat to not at all important in the local labor market. Twenty-nine percent of those surveyed indicated immigrant labor fills jobs that otherwise wouldn't be filled, while 12 percent reported that immigrant labor crowds out American workers. A net 29 percent also said immigrant labor played no appreciable role in their community. The survey questions did not distinguish between legal and illegal immigrants.
The Small-Business Conditions reports are developed from surveys of small-business owners in selected states. The surveys are designed to determine the condition of the small-business economy in each particular state. The surveys are conducted every three months and results are released on the first day of the month following completion. The text of the questions and the complete response set to the survey can be found at www.NFIB.com/research.
| Colorado Small-Business ConditionsSM | ||||||
| This chart shows the results from Colorado and its comparative standing among selected states in the region. | ||||||
| Colo. | Ariz. | Mo. | Ore. | |||
| Business Climate | Survey Date | |||||
| Overall state business environment | ||||||
| Net % supportive of small business | 8/2005 | 28 | 36 | 28 | 13 | |
| Prior qtr. | 32 | 32 | 29 | 20 | ||
| Business conditions in market area | ||||||
| Net % "good" | 8/2005 | 44 | 63 | 44 | 41 | |
| Prior qtr. | 39 | 60 | 43 | 30 | ||
| Net % "improving" | 8/2005 | 20 | 30 | 11 | 12 | |
| Prior qtr. | 23 | 29 | 15 | 20 | ||
| Outlook for business | ||||||
| Net % "good" in next three months | 8/2005 | 64 | 76 | 66 | 64 | |
| Prior qtr. | 61 | 68 | 62 | 64 | ||
| Reason for optimism | ||||||
| % Sales prospects | 8/2005 | 44 | 38 | 43 | 44 | |
| Prior qtr. | 39 | 46 | 42 | 36 | ||
| % Lower costs | 8/2005 | 1 | 3 | 4 | 2 | |
| Prior qtr. | 3 | 3 | 2 | 1 | ||
| % Price increases | 8/2005 | 3 | 5 | 3 | 3 | |
| Prior qtr. | 3 | 3 | 5 | 4 | ||
| % Greater productivity | 8/2005 | 10 | 13 | 11 | 11 | |
| Prior qtr. | 18 | 17 | 16 | 16 | ||
| % Government policy | 8/2005 | 4 | 3 | 6 | 4 | |
| Prior qtr. | 3 | 3 | 4 | 4 | ||
| % Seasonal/Weather | 8/2005 | 11 | 11 | 11 | 12 | |
| Prior qtr. | - | - | - | - | ||
| Reason for pessimism | ||||||
| % Sales prospects | 8/2005 | IC* | IC | IC | IC | |
| Prior qtr. | IC | IC | IC | IC | ||
| % Cost increases | 8/2005 | IC | IC | IC | IC | |
| Prior qtr. | IC | IC | IC | IC | ||
| % Pressure on selling prices | 8/2005 | IC | IC | IC | IC | |
| Prior qtr. | IC | IC | IC | IC | ||
| % Lower productivity | 8/2005 | IC | IC | IC | IC | |
| Prior qtr. | IC | IC | IC | IC | ||
| % Government policies | 8/2005 | IC | IC | IC | IC | |
| Prior qtr. | IC | IC | IC | IC | ||
| Colo. | Ariz. | Mo. | Ore. | |||
| Sales and earnings (last quarter) | ||||||
| Sales | ||||||
| Net % sales "good" | 8/2005 | 52 | 60 | 46 | 52 | |
| Prior qtr. | 39 | 61 | 45 | 45 | ||
| Profits | ||||||
| Net % profits "good" | 8/2005 | 33 | 46 | 26 | 34 | |
| Prior qtr. | 21 | 41 | 24 | 21 | ||
| Employment | ||||||
| Current job openings (one or more) | ||||||
| % "Yes" | 8/2005 | 19 | 29 | 20 | 17 | |
| Prior qtr. | 20 | 22 | 19 | 18 | ||
| Per employee payroll cost | ||||||
| Net % "risen" | 8/2005 | 12 | 20 | 13 | 25 | |
| Prior qtr. | 14 | 19 | 16 | 20 | ||
| Employee cost pressures (greater) | ||||||
| % Wages | 8/2005 | 56 | 55 | 58 | 53 | |
| Prior qtr. | 53 | 54 | 54 | 56 | ||
| % Benefits | 8/2005 | 22 | 23 | 24 | 28 | |
| Prior qtr. | 27 | 26 | 26 | 20 | ||
| Colo. | Ariz. | Mo. | Ore. | |||
| Productivity | ||||||
| Upgraded technology/processes (last three months) | ||||||
| % "Yes" | 8/2005 | 42 | 43 | 42 | 45 | |
| Prior qtr. | 47 | 48 | 46 | 43 | ||
| Made capital expenditure(s) (last three months) | ||||||
| % "Yes" | 8/2005 | 39 | 43 | 40 | 43 | |
| Prior qtr. | 43 | 41 | 43 | 41 | ||
| Made expenditure to train employee(s) (last three months) | ||||||
| % "Yes" | 8/2005 | 41 | 43 | 38 | 41 | |
| Prior qtr. | 45 | 39 | 35 | 40 | ||
| Capacity utilization - can increase sales 10% without new inputs | ||||||
| % "Yes" | 8/2005 | 52 | 63 | 54 | 54 | |
| Prior qtr. | 53 | 52 | 49 | 57 | ||
| Credit availability (last three months) | ||||||
| % All credit needs satisfied | 8/2005 | 37 | 41 | 39 | 39 | |
| Prior qtr. | 39 | 38 | 41 | 36 | ||
| % All credit needs not satisfied | 8/2005 | 5 | 4 | 6 | 7 | |
| Prior qtr. | 6 | 7 | 5 | 6 | ||
| % No credit needs | 8/2005 | 49 | 50 | 47 | 48 | |
| Prior qtr. | 49 | 47 | 45 | 51 | ||
| Colo. | Ariz. | Mo. | Ore. | |||
| Prices | ||||||
| Purchasing prices (last three months) | ||||||
| Net % increased | 8/2005 | 50 | 49 | 58 | 55 | |
| Prior qtr. | 34 | 57 | 53 | 62 | ||
| Selling prices (last three months) | ||||||
| Net % increased | 8/2005 | 17 | 16 | 18 | 20 | |
| Prior qtr. | 15 | 24 | 20 | 23 | ||
| Miscellaneous | ||||||
| Involvement in start of another business | ||||||
| % "Yes" | 8/2005 | 10 | 12 | 13 | 13 | |
| Prior qtr. | 12 | 10 | 11 | 8 | ||
| Single most important business problem | ||||||
| % Weak sales | 8/2005 | 7 | 8 | 9 | 10 | |
| Prior qtr. | 12 | 9 | 12 | 10 | ||
| % Taxes | 8/2005 | 11 | 7 | 9 | 9 | |
| Prior qtr. | 10 | 7 | 12 | 9 | ||
| % Employee quality/costs | 8/2005 | 11 | 15 | 12 | 10 | |
| Prior qtr. | 9 | 13 | 7 | 9 | ||
| % Insurance | 8/2005 | 16 | 12 | 20 | 17 | |
| Prior qtr. | 15 | 14 | 19 | 17 | ||
| % Big-business competition | 8/2005 | 16 | 15 | 13 | 14 | |
| Prior qtr. | 17 | 14 | 12 | 10 | ||
| % Inflation/Rising prices | 8/2005 | 13 | 14 | 13 | 11 | |
| Prior qtr. | 14 | 13 | 13 | 17 | ||
| % Credit availability/Interest rates | 8/2005 | 3 | 3 | 4 | 3 | |
| Prior qtr. | 3 | 3 | 3 | 2 | ||
| % Regulations/Red tape | 8/2005 | 5 | 7 | 6 | 9 | |
| Prior qtr. | 4 | 11 | 8 | 9 | ||
| Colorado Quarterly Spotlight | |
| How important is immigrant labor to business in your area? Is it very important, somewhat important, not too important or not at all important? | |
| Very important | 19% |
| Somewhat important | 25% |
| Not too important | 15% |
| Not at all important | 31% |
| Don't know/Refused | 11% |
| Total | 100% |
| Which best describes the role immigrant labor plays in your area? | |
| Provides skills not otherwise available | 7% |
| Fills jobs that otherwise wouldn't be filled | 29% |
| Crowds out American workers | 12% |
| No appreciable role | 29% |
| Don't know/Refused | 24% |
| Total | 100% |
The Poll
NFIB’s Colorado Small-Business ConditionsSM is a telephone survey of a random sample of Colorado small employers regarding business conditions within the state. “Small employer” is defined here as employing between one and 250 people (not including the owner(s)) in a for-profit business. Each edition of the survey has a minimum of 350 respondents. The sampling error is ± 5 percentage points. Data are collected quarterly in the months of February, May, August and November, beginning in February 2005. The MRCGroup of Las Vegas conducts the survey for the NFIB Research Foundation.
The Sponsor
The NFIB Research Foundation is a 501 (c)(3) organization that provides policy-makers, media, educators, small-business owners and other interested parties empirically based information on small business and small-business owners. The Foundation is affiliated with the National Federation of Independent Business, the nation’s largest small- and independent-business advocacy organization, and is located in Washington, D.C.
