Release Date: 12/ 01/ 2005
CONTACT: Melody Harrison, (404) 876-8516 or Jim Brown, (615) 874-5288
Georgia Entrepreneurs Resilient in Face of Inflationary Pressure, Shed Light on Immigrant Labor
ATLANTA -- Business conditions in Georgia remain good and the state's business environment is still among the nation's best, but optimism from small-business owners faded this quarter, according to the Georgia Small-Business ConditionsSM. The report's data, which was released today by the National Federation of Independent Business/Georgia, provides an overview of small-business conditions within Georgia and compares them with neighboring states.
A net 46 percent (positive percent minus negative percent) of Georgia respondents said business conditions are "good," a solid reading but lower than September's net 52 percent. Georgia trailed only Florida (net 50 percent) in its peer group, besting South Carolina (net 45 percent), Tennessee (net 43 percent) and North Carolina (net 38 percent).
Still, there is some slippage from earlier in the year. A net 14 percent of respondents said business conditions are "improving," down significantly from a net 25 percent in September. A net 44 percent said sales are "good," down from a net 52 percent in September, while a net 28 percent said profits are "good," down from a net 35 percent last quarter.
Georgia's business environment remains among the best in the nation, with a net 36 percent calling it "supportive." The reading was No. 2 among 26 states in the survey group and best among six Southeast states. In addition, 72 percent of respondents are "satisfied" with the direction Georgia is headed while 22 percent said they are "dissatisfied."
"Business conditions in Georgia remain very good, but there are signs momentum is shifting in a post-Katrina environment," NFIB/Georgia State Director Melody Harrison said. "Georgia continues to compare favorably to peer states in the Southeast, but many entrepreneurs are feeling pinched in the short term by rising energy prices and pressure on sales and profits."
Average prices small businesses paid for goods and services rose, as 59 percent reported increases in the most recent quarter, up from 56 percent in September. Sixty-seven percent said prospects over the next few months look "good," down from 71 percent in September.
Asked to list their single most important problem facing their business today, 15 percent said inflation and rising prices, 14 percent said big-business competition, 13 percent said taxes, another 13 percent said employee quality or costs, and 11 percent said insurance.
The Small-Business ConditionsSM 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.
| Georgia Small-Business ConditionsSM | ||||||
| This chart shows the results from Georgia and its comparative standing among selected nearby states. | ||||||
| Ga. | Fla. | N.C. | S.C. | Tenn. | ||
| Business Climate | Survey Date | |||||
| Overall state business environment | ||||||
| Net % supportive of small business | 11/2005 | 36 | 25 | 32 | 33 | 31 |
| Prior qtr. | 37 | 29 | 38 | 40 | 32 | |
| Business conditions in market area | ||||||
| Net % "good" | 11/2005 | 46 | 50 | 38 | 45 | 43 |
| Prior qtr. | 52 | 55 | 43 | 45 | 40 | |
| Net % "improving" | 11/2005 | 14 | 18 | 10 | 15 | 9 |
| Prior qtr. | 25 | 25 | 14 | 14 | 6 | |
| Outlook for business | ||||||
| Net % "good" in next three months | 11/2005 | 63 | 68 | 60 | 56 | 62 |
| Prior qtr. | 67 | 69 | 65 | 62 | 62 | |
| Reason for optimism | ||||||
| % Sales prospects | 11/2005 | 45 | 38 | 45 | 42 | 51 |
| Prior qtr. | 51 | 42 | 43 | 40 | 37 | |
| % Lower costs | 11/2005 | 3 | 3 | 3 | 4 | 5 |
| Prior qtr. | 5 | 4 | 2 | 3 | 3 | |
| % Price increases | 11/2005 | 3 | 5 | 3 | 8 | 5 |
| Prior qtr. | 1 | 4 | 4 | 3 | 4 | |
| % Greater productivity | 11/2005 | 17 | 16 | 2 | 13 | 16 |
| Prior qtr. | 11 | 13 | 18 | 17 | 16 | |
| % Government policy | 11/2005 | 6 | 4 | 3 | 5 | 5 |
| Prior qtr. | 6 | 4 | 4 | 1 | 4 | |
| % Seasonal/Weather | 11/2005 | 8 | 12 | 4 | 10 | 5 |
| Prior qtr. | 8 | 12 | 9 | 11 | 10 | |
| Reason for pessimism | ||||||
| % Sales prospects | 11/2005 | IC* | IC | IC | IC | IC |
| Prior qtr. | IC | IC | IC | IC | IC | |
| % Cost increases | 11/2005 | IC | IC | IC | IC | IC |
| Prior qtr. | IC | IC | IC | IC | IC | |
| % Pressure on selling prices | 11/2005 | IC | IC | IC | IC | IC |
| Prior qtr. | IC | IC | IC | IC | IC | |
| % Lower productivity | 11/2005 | IC | IC | IC | IC | IC |
| Prior qtr. | IC | IC | IC | IC | IC | |
| % Government policies | 11/2005 | IC | IC | IC | IC | IC |
| Prior qtr. | IC | IC | IC | IC | IC | |
| Ga. | Fla. | N.C. | S.C. | Tenn. | ||
| Sales and earnings (last quarter) | ||||||
| Sales | ||||||
| Net % sales "good" | 11/2005 | 44 | 44 | 40 | 44 | 47 |
| Prior qtr. | 52 | 53 | 53 | 55 | 41 | |
| Profits | ||||||
| Net % profits "good" | 11/2005 | 28 | 28 | 24 | 32 | 32 |
| Prior qtr. | 35 | 38 | 38 | 40 | 27 | |
| Employment | ||||||
| Current job openings (one or more) | ||||||
| % "Yes" | 11/2005 | 15 | 26 | 17 | 19 | 17 |
| Prior qtr. | 23 | 26 | 15 | 17 | 20 | |
| Per employee payroll cost | ||||||
| Net % "risen" | 11/2005 | 14 | 17 | 14 | 11 | 15 |
| Prior qtr. | 15 | 16 | 16 | 15 | 15 | |
| Employee cost pressures (greater) | ||||||
| % Wages | 11/2005 | 60 | 53 | 57 | 48 | 57 |
| Prior qtr. | 55 | 57 | 54 | 57 | 59 | |
| % Benefits | 11/2005 | 25 | 27 | 28 | 32 | 24 |
| Prior qtr. | 23 | 24 | 28 | 23 | 24 | |
| Ga. | Fla. | N.C. | S.C. | Tenn. | ||
| Productivity | ||||||
| Upgraded technology/processes (last three months) | ||||||
| % "Yes" | 11/2005 | 41 | 45 | 41 | 45 | 43 |
| Prior qtr. | 46 | 46 | 44 | 37 | 41 | |
| Made capital expenditure(s) (last three months) | ||||||
| % "Yes" | 11/2005 | 41 | 43 | 43 | 42 | 47 |
| Prior qtr. | 36 | 43 | 43 | 41 | 39 | |
| Made expenditure to train employee(s) (last three months) | ||||||
| % "Yes" | 11/2005 | 40 | 43 | 44 | 43 | 42 |
| Prior qtr. | 42 | 40 | 42 | 43 | 39 | |
| Capacity utilization - can increase sales 10% without new inputs | ||||||
| % "Yes" | 11/2005 | 64 | 55 | 54 | 48 | 58 |
| Prior qtr. | 61 | 55 | 52 | 54 | 49 | |
| Credit availability (last three months) | ||||||
| % All credit needs satisfied | 11/2005 | 43 | 42 | 38 | 40 | 37 |
| Prior qtr. | 39 | 41 | 39 | 38 | 35 | |
| % All credit needs not satisfied | 11/2005 | 6 | 7 | 8 | 10 | 8 |
| Prior qtr. | 5 | 5 | 5 | 6 | 6 | |
| % No credit needs | 11/2005 | 47 | 46 | 51 | 44 | 52 |
| Prior qtr. | 52 | 48 | 52 | 49 | 53 | |
| Ga. | Fla. | N.C. | S.C. | Tenn. | ||
| Prices | ||||||
| Purchasing prices (last three months) | ||||||
| Net % increased | 11/2005 | 57 | 59 | 64 | 62 | 64 |
| Prior qtr. | 55 | 55 | 54 | 53 | 58 | |
| Selling prices (last three months) | ||||||
| Net % increased | 11/2005 | 16 | 23 | 18 | 20 | 21 |
| Prior qtr. | 17 | 20 | 14 | 14 | 13 | |
| Miscellaneous | ||||||
| Involvement in start of another business | ||||||
| % "Yes" | 11/2005 | 11 | 14 | 12 | 10 | 10 |
| Prior qtr. | 13 | 13 | 9 | 9 | 10 | |
| Single most important business problem | ||||||
| % Weak sales | 11/2005 | 9 | 9 | 8 | 6 | 9 |
| Prior qtr. | 11 | 7 | 9 | 11 | 8 | |
| % Taxes | 11/2005 | 13 | 7 | 9 | 11 | 14 |
| Prior qtr. | 13 | 8 | 13 | 14 | 13 | |
| % Employee quality/costs | 11/2005 | 13 | 11 | 11 | 12 | 8 |
| Prior qtr. | 13 | 12 | 10 | 7 | 10 | |
| % Insurance | 11/2005 | 11 | 15 | 14 | 14 | 9 |
| Prior qtr. | 12 | 16 | 17 | 16 | 19 | |
| % Big-business competition | 11/2005 | 14 | 15 | 16 | 14 | 13 |
| Prior qtr. | 15 | 14 | 14 | 11 | 11 | |
| % Inflation/Rising prices | 11/2005 | 15 | 15 | 17 | 16 | 22 |
| Prior qtr. | 12 | 14 | 12 | 15 | 13 | |
| % Credit availability/Interest rates | 11/2005 | 5 | 5 | 3 | 4 | 4 |
| Prior qtr. | 2 | 3 | 3 | 3 | 2 | |
| % Regulations/Red tape | 11/2005 | 7 | 8 | 7 | 8 | 7 |
| Prior qtr. | 9 | 8 | 8 | 6 | 8 | |
| Georgia Quarterly Spotlight | |
| In general, how satisfied are you with the direction that Georgia is headed? Are you very satisfied, somewhat satisfied, not too satisfied or not at all satisfied? | |
| Very satisfied | 13% |
| Somewhat satisfied | 59% |
| Not too satisfied | 15% |
| Not at all satisfied | 6% |
| Don't know/Refused | 6% |
| Total | 100% |
| Which best describes the role immigrant labor plays in your area? | |
| Provides skills not otherwise available | 9% |
| Fills jobs that otherwise wouldn't be filled | 28% |
| Crowds out American workers | 17% |
| No appreciable role | 26% |
| Don't know/Refused | 19% |
| Total | 100% |
The Poll
NFIB’s Georgia Small-Business ConditionsSM is a telephone survey of a random sample of Georgia 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.
