Release Date: 09/ 01/ 2005
CONTACT: Jason Shelley, (317) 638-4447 or Michael Diegel, (202) 554-9000
Hoosier Small-Business Owners Much More Positive Than Those in Illinois, Michigan and Ohio
INDIANAPOLIS, Ind. -- Indiana’s overall business climate remains positive and better than the neighboring states of Illinois, Michigan and Ohio, according to the Indiana Small-Business ConditionsSM report. The report’s data, which was released today by the National Federation of Independent Business/Indiana, provides an overview of small-business conditions within Indiana and compares them with neighboring states.
“Hoosier small-business owners feel good about their business environment, but energy and employee compensation costs appear to be eating into profits,” said Jason Shelley, NFIB/Indiana state director.
Indiana’s business environment is significantly more positive than surveyed surrounding states. Indiana’s business climate currently registers a net 28 percent (positive percent minus negative percent). Illinois, in contrast, is a net 18 percent, Michigan is a net 8 percent and Ohio is a net 11 percent.
“Sixty-one percent said that they are satisfied with the direction Indiana is headed, while only 32 percent responded they are unsatisfied,” said Shelley. “Couple that with a net 56 percent positive outlook for business in the next three months, up a net 4 percent from June, and there is reason for optimism for Hoosier entrepreneurs.”
Indiana small-business owners again ranked the cost of insurance most frequently as their single most important problem. The cost of insurance has been the number one business problem in every 2005 Indiana Small-Business ConditionsSM report.
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.
| Indiana Small-Business ConditionsSM | ||||||
| This chart shows the results from Indiana and its comparative standing among selected states in the region. | ||||||
| Ind. | Ill. | Mich. | Ohio | |||
| Business Climate | Survey Date | |||||
| Overall state business environment | ||||||
| Net % supportive of small business | 8/2005 | 28 | 18 | 8 | 11 | |
| Prior qtr. | 32 | 6 | 7 | 8 | ||
| Business conditions in market area | ||||||
| Net % "good" | 8/2005 | 29 | 31 | 2 | 20 | |
| Prior qtr. | 31 | 30 | 0 | 23 | ||
| Net % "improving" | 8/2005 | 9 | 8 | -5 | 2 | |
| Prior qtr. | 12 | 10 | -4 | 4 | ||
| Outlook for business | ||||||
| Net % "good" in next three months | 8/2005 | 56 | 51 | 41 | 49 | |
| Prior qtr. | 52 | 61 | 52 | 51 | ||
| Reason for optimism | ||||||
| % Sales prospects | 8/2005 | 45 | 49 | 42 | 50 | |
| Prior qtr. | 47 | 46 | 38 | 40 | ||
| % Lower costs | 8/2005 | 4 | 3 | 3 | 4 | |
| Prior qtr. | 2 | 5 | 3 | 2 | ||
| % Price increases | 8/2005 | 5 | 1 | 2 | 2 | |
| Prior qtr. | 3 | 4 | 5 | 6 | ||
| % Greater productivity | 8/2005 | 12 | 16 | 11 | 12 | |
| Prior qtr. | 12 | 12 | 12 | 17 | ||
| % Government policy | 8/2005 | 5 | 2 | 4 | 3 | |
| Prior qtr. | 4 | 5 | 2 | 6 | ||
| % Seasonal/Weather | 8/2005 | 8 | 11 | 10 | 8 | |
| 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 | ||
| Ind. | Ill. | Mich. | Ohio | |||
| Sales and earnings (last quarter) | ||||||
| Sales | ||||||
| Net % sales "good" | 8/2005 | 37 | 39 | 22 | 34 | |
| Prior qtr. | 35 | 34 | 24 | 33 | ||
| Profits | ||||||
| Net % profits "good" | 8/2005 | 14 | 22 | 0 | 13 | |
| Prior qtr. | 19 | 15 | 6 | 17 | ||
| Employment | ||||||
| Current job openings (one or more) | ||||||
| % "Yes" | 8/2005 | 19 | 18 | 17 | 17 | |
| Prior qtr. | 16 | 19 | 16 | 17 | ||
| Per employee payroll cost | ||||||
| Net % "risen" | 8/2005 | 12 | 17 | 8 | 12 | |
| Prior qtr. | 14 | 11 | 11 | 9 | ||
| Employee cost pressures (greater) | ||||||
| % Wages | 8/2005 | 57 | 51 | 50 | 50 | |
| Prior qtr. | 55 | 51 | 52 | 52 | ||
| % Benefits | 8/2005 | 26 | 34 | 31 | 33 | |
| Prior qtr. | 30 | 29 | 30 | 30 | ||
| Ind. | Ill. | Mich. | Ohio | |||
| Productivity | ||||||
| Upgraded technology/processes (last three months) | ||||||
| % "Yes" | 8/2005 | 41 | 45 | 38 | 40 | |
| Prior qtr. | 38 | 44 | 39 | 40 | ||
| Made capital expenditure(s) (last three months) | ||||||
| % "Yes" | 8/2005 | 42 | 43 | 35 | 40 | |
| Prior qtr. | 38 | 43 | 39 | 39 | ||
| Made expenditure to train employee(s) (last three months) | ||||||
| % "Yes" | 8/2005 | 39 | 39 | 36 | 39 | |
| Prior qtr. | 35 | 40 | 42 | 35 | ||
| Capacity utilization - can increase sales 10% without new inputs | ||||||
| % "Yes" | 8/2005 | 49 | 54 | 53 | 50 | |
| Prior qtr. | 57 | 56 | 51 | 50 | ||
| Credit availability (last three months) | ||||||
| % All credit needs satisfied | 8/2005 | 35 | 40 | 31 | 37 | |
| Prior qtr. | 38 | 41 | 34 | 36 | ||
| % All credit needs not satisfied | 8/2005 | 5 | 5 | 7 | 6 | |
| Prior qtr. | 6 | 6 | 10 | 7 | ||
| % No credit needs | 8/2005 | 53 | 49 | 55 | 51 | |
| Prior qtr. | 50 | 46 | 49 | 51 | ||
| Ind. | Ill. | Mich. | Ohio | |||
| Prices | ||||||
| Purchasing prices (last three months) | ||||||
| Net % increased | 8/2005 | 55 | 51 | 55 | 55 | |
| Prior qtr. | 57 | 47 | 50 | 51 | ||
| Selling prices (last three months) | ||||||
| Net % increased | 8/2005 | 16 | 14 | 10 | 16 | |
| Prior qtr. | 17 | 17 | 15 | 17 | ||
| Miscellaneous | ||||||
| Involvement in start of another business | ||||||
| % "Yes" | 8/2005 | 8 | 9 | 9 | 8 | |
| Prior qtr. | 12 | 9 | 10 | 12 | ||
| Single most important business problem | ||||||
| % Weak sales | 8/2005 | 11 | 9 | 17 | 13 | |
| Prior qtr. | 9 | 13 | 16 | 12 | ||
| % Taxes | 8/2005 | 15 | 13 | 11 | 18 | |
| Prior qtr. | 15 | 15 | 11 | 11 | ||
| % Employee quality/costs | 8/2005 | 9 | 8 | 7 | 8 | |
| Prior qtr. | 4 | 6 | 5 | 8 | ||
| % Insurance | 8/2005 | 16 | 14 | 17 | 13 | |
| Prior qtr. | 18 | 17 | 20 | 18 | ||
| % Big-business competition | 8/2005 | 13 | 15 | 11 | 14 | |
| Prior qtr. | 15 | 14 | 11 | 13 | ||
| % Inflation/Rising prices | 8/2005 | 13 | 11 | 14 | 12 | |
| Prior qtr. | 13 | 13 | 10 | 15 | ||
| % Credit availability/Interest rates | 8/2005 | 2 | 3 | 3 | 3 | |
| Prior qtr. | 4 | 3 | 1 | 3 | ||
| % Regulations/Red tape | 8/2005 | 6 | 9 | 5 | 8 | |
| Prior qtr. | 8 | 8 | 8 | 7 | ||
| Indiana Quarterly Spotlight | |
| In general, how satisfied are you with the direction that Indiana is headed? Are you very satisfied, somewhat satisfied, not too satisfied or not at all satisfied? | |
| Very satisfied | 11% |
| Somewhat satisfied | 51% |
| Not too satisfied | 21% |
| Not at all satisfied | 11% |
| Don't know/Refused | 7% |
| Total | 100% |
| What do you value most in the area where you do business? | |
| Quality of life | 33% |
| Physical environment | 7% |
| Opportunity | 14% |
| Vibrance and vitality | 1% |
| My roots are here | 38% |
| Other | 3% |
| Don't know/Refused | 4% |
| Total | 100% |
The Poll
NFIB’s Indiana Small-Business ConditionsSM is a telephone survey of a random sample of Indiana 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.
