Release Date: 06/ 01/ 2005
CONTACT: Mike Hickey, (651) 293-1283 or Kevin Walter, (614) 221-4107
MINNESOTA -- Minnesota's overall small-business climate is improving according to the most recent Minnesota Small-Business ConditionsSM study. The new report's data, released today by the small-business group the National Federation of Independent Business /Minnesota, provides an overview of small-business conditions within Minnesota and compares them with neighboring and other states.
"The report is a mix of positive and not-so-positive news," said Mike Hickey, NFIB/Minnesota state director. "While Minnesota's business climate lags behind neighboring states Iowa and Wisconsin, it falls in the middle of the 26 states surveyed."
A net 26 percent (percent positive minus percent negative) of Minnesota's small-business owners believe the state's business climate is supportive. Iowa is at 34 percent and Wisconsin is at 38 percent. The average net percentage for all states surveyed regarding their respective business environment was 22 percent. North Carolina had the highest net percentage (42 percent) and Washington state had the lowest at negative 4 (-4) percent.
Minnesota was comparable to Iowa and Wisconsin in current business conditions. A net 41 percent saw business conditions in their market area as good compared to 45 percent in Iowa and 40 percent in Wisconsin. Owners also are optimistic about the future. A net 61 percent of Minnesota's small-business owners characterize the outlook for business over the next three months as "good."
When asked their most important business problem, Minnesota small-business owners cited the cost of insurance as the most serious of all conditions. "This comes as no surprise. Our members continue to be plagued by the high cost of insurance, especially health insurance, with no relief in sight," said Hickey.
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. For information about the Small-Business ConditionsSM project and other small-business research studies conducted by the NFIB Research Foundation, visit www.NFIB.com/research.
| Minnesota Small-Business ConditionsSM | ||||||
| This chart shows the results from Minnesota and its comparative standing among selected nearby states. | ||||||
| Minn. | Iowa | Wis. | ||||
| Business Climate | Survey Date | |||||
| Overall state business environment | ||||||
| Net % supportive of small business | 5/2005 | 26 | 34 | 31 | ||
| Prior qtr. | 27 | 33 | 22 | |||
| Business conditions in market area | ||||||
| Net % "good" | 5/2005 | 41 | 45 | 40 | ||
| Prior qtr. | 38 | 37 | 33 | |||
| Net % "improving" | 5/2005 | 15 | 9 | 19 | ||
| Prior qtr. | 12 | 15 | 10 | |||
| Outlook for business | ||||||
| Net % "good" in next three months | 5/2005 | 61 | 64 | 68 | ||
| Prior qtr. | 63 | 61 | 66 | |||
| Reason for optimism | ||||||
| % Sales prospects | 5/2005 | 46 | 41 | 44 | ||
| Prior qtr. | 57 | 42 | 59 | |||
| % Lower costs | 5/2005 | 2 | 3 | 2 | ||
| Prior qtr. | 2 | 3 | 1 | |||
| % Price increases | 5/2005 | 5 | 5 | 5 | ||
| Prior qtr. | 3 | 4 | 5 | |||
| % Greater productivity | 5/2005 | 13 | 14 | 14 | ||
| Prior qtr. | 15 | 16 | 12 | |||
| % Government policy | 5/2005 | 3 | 4 | 4 | ||
| Prior qtr. | 3 | 5 | 3 | |||
| % Seasonal/Weather | 5/2005 | 12 | 18 | 15 | ||
| Prior qtr. | - | - | - | |||
| Reason for pessimism | ||||||
| % Sales prospects | 5/2005 | IC* | IC | IC | ||
| Prior qtr. | IC | IC | IC | |||
| % Cost increases | 5/2005 | IC | IC | IC | ||
| Prior qtr. | IC | IC | IC | |||
| % Pressure on selling prices | 5/2005 | IC | IC | IC | ||
| Prior qtr. | IC | IC | IC | |||
| % Lower productivity | 5/2005 | IC | IC | IC | ||
| Prior qtr. | IC | IC | IC | |||
| % Government policy | 5/2005 | IC | IC | IC | ||
| Prior qtr. | IC | IC | IC | |||
| Minn. | Iowa | Wis. | ||||
| Sales and earnings (last quarter) | ||||||
| Sales | ||||||
| Net % sales "good" | 5/2005 | 39 | 55 | 43 | ||
| Prior qtr. | 27 | 44 | 37 | |||
| Profits | ||||||
| Net % profits "good" | 5/2005 | 23 | 33 | 23 | ||
| Prior qtr. | 12 | 29 | 20 | |||
| Employment | ||||||
| Current job openings (one or more) | ||||||
| % "Yes" | 5/2005 | 16 | 16 | 20 | ||
| Prior qtr. | 16 | 15 | 19 | |||
| Per employee payroll cost | ||||||
| Net % "risen" | 5/2005 | 17 | 16 | 12 | ||
| Prior qtr. | 22 | 13 | 23 | |||
| Employee cost pressures (greater) | ||||||
| % Wages | 5/2005 | 51 | 58 | 53 | ||
| Prior qtr. | 53 | 55 | 52 | |||
| % Benefits | 5/2005 | 30 | 24 | 33 | ||
| Prior qtr. | 30 | 26 | 35 | |||
| Minn. | Iowa | Wis. | ||||
| Productivity | ||||||
| Upgraded technology/processes (last three months) | ||||||
| % "Yes" | 5/2005 | 47 | 33 | 41 | ||
| Prior qtr. | 46 | 41 | 46 | |||
| Made capital expenditure(s) (last three months) | ||||||
| % "Yes" | 5/2005 | 46 | 36 | 41 | ||
| Prior qtr. | 46 | 46 | 55 | |||
| Made expenditure to train employee(s) (last three months) | ||||||
| % "Yes" | 5/2005 | 41 | 33 | 36 | ||
| Prior qtr. | 47 | 37 | 43 | |||
| Capacity utilization - can increase sales 10% without new inputs | ||||||
| % "Yes" | 5/2005 | 53 | 53 | 56 | ||
| Prior qtr. | 56 | 51 | 48 | |||
| Credit availability (last three months) | ||||||
| % All credit needs satisfied | 5/2005 | 43 | 41 | 41 | ||
| Prior qtr. | 35 | 47 | 45 | |||
| % All credit needs not satisfied | 5/2005 | 5 | 4 | 6 | ||
| Prior qtr. | 8 | 5 | 8 | |||
| % No credit needs | 5/2005 | 43 | 49 | 46 | ||
| Prior qtr. | 52 | 43 | 43 | |||
| Minn. | Iowa | Wis. | ||||
| Prices | ||||||
| Purchasing prices (last three months) | ||||||
| Net % increased | 5/2005 | 56 | 58 | 54 | ||
| Prior qtr. | 60 | 50 | 58 | |||
| Selling prices (last three months) | ||||||
| Net % increased | 5/2005 | 19 | 22 | 20 | ||
| Prior qtr. | 21 | 14 | 15 | |||
| Miscellaneous | ||||||
| Involvement in start of another business | ||||||
| % "Yes" | 5/2005 | 9 | 9 | 8 | ||
| Prior qtr. | 12 | 10 | 9 | |||
| Single most important business problem | ||||||
| % Weak sales | 5/2005 | 13 | 9 | 10 | ||
| Prior qtr. | 12 | 8 | 9 | |||
| % Taxes | 5/2005 | 11 | 11 | 15 | ||
| Prior qtr. | 8 | 9 | 12 | |||
| % Employee quality/costs | 5/2005 | 7 | 7 | 6 | ||
| Prior qtr. | 9 | 8 | 9 | |||
| % Insurance | 5/2005 | 18 | 19 | 23 | ||
| Prior qtr. | 21 | 19 | 25 | |||
| % Big-business competition | 5/2005 | 14 | 12 | 15 | ||
| Prior qtr. | 17 | 17 | 14 | |||
| % Inflation/Rising prices | 5/2005 | 14 | 19 | 13 | ||
| Prior qtr. | 13 | 10 | 14 | |||
| % Credit availability/Interest rates | 5/2005 | 3 | 4 | 3 | ||
| Prior qtr. | 2 | 1 | 3 | |||
| % Regulations/Red tape | 5/2005 | 7 | 7 | 4 | ||
| Prior qtr. | 8 | 11 | 7 | |||
| Minnesota Quarterly Spotlight | |
| In general, how satisfied are you with the direction that Minnesota is headed? | |
| Very satisifed | 6% |
| Somewhat satisfied | 55% |
| Not too satisfied | 19% |
| Not at all satisfied | 13% |
| Don't know/Refused | 7% |
| Total | 100% |
| What do you value most in the area where you do business? | |
| Quality of life | 42% |
| Physical environment | 6% |
| Opportunity | 12% |
| Vibrance and vitality | 4% |
| My roots are here | 29% |
| Other | 1% |
| Don't know/Refused | 5% |
| Total | 100% |
The Poll
NFIB’s Minnesota Small-Business ConditionsSM is a telephone survey of a random sample of Minnesota 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.
