Release Date: 09/ 01/ 2005
CONTACT: Brad Jones, (573) 634-7660, or Nancy St. Pierre, (214) 614-3008
Quarterly survey also shows increase in satisfaction with state’s direction
JEFFERSON CITY, Mo. -- Missouri small businesses continue to provide a boost to the state’s economy, and there has been a significant increase in the number of small-business owners who indicate they are satisfied with the direction the state is headed, according to the third quarter Missouri Small-Business ConditionsSM report released today by the National Federation of Independent Business, the nation’s largest small-business advocacy organization.
Small-business owners appear to be basking in the glow of arguably one of the best state legislative sessions in recent memory, where comprehensive tort and workers’ compensation reforms were passed, as well as the recent signing by Gov. Matt Blunt of one of the nation’s most powerful regulatory fairness laws.
Seventy percent of small-business owners polled in August indicated they were “somewhat to very satisfied” with the direction Missouri is headed, an overall 7-point gain from May.
“The Missouri legislature and the Blunt administration have provided many tools for the small-business community to continue its growth and significant contribution to Missouri’s economy,” said Brad Jones, NFIB/Missouri state director. “The reforms passed during the 2005 session and a strengthened regulatory flexibility law have positioned the state to be one of the premier places to do business and encourage entrepreneurship.”
The state’s small businesses continued to thrive during the summer and forecast continued optimism through the end of the year, according to the NFIB report. A net 66 percent of those polled indicated a good outlook for business through the next three months. Missouri small business also continued a positive trend throughout the survey as compared to neighboring Illinois, whose small businesses continue to struggle.
Also of note is the increasing number of small-business owners who indicated their purchase prices rising, while a decreasing number are passing those increases on to their consumers. In Missouri, a net 58 percent indicated their purchase prices increased; only a net 18 percent have increased selling prices.
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. The final 2005 survey will be released Dec. 1.
| Missouri Small-Business ConditionsSM | ||||||
| This chart shows the results from Missouri and its comparative standing among selected states in the region. | ||||||
| Mo. | Ill. | Iowa | Tenn. | |||
| Business Climate | Survey Date | |||||
| Overall state business environment | ||||||
| Net % supportive of small business | 8/2005 | 28 | 18 | 32 | 32 | |
| Prior qtr. | 29 | 6 | 34 | 32 | ||
| Business conditions in market area | ||||||
| Net % "good" | 8/2005 | 44 | 31 | 41 | 40 | |
| Prior qtr. | 43 | 30 | 45 | 44 | ||
| Net % "improving" | 8/2005 | 11 | 8 | 5 | 6 | |
| Prior qtr. | 15 | 10 | 9 | 14 | ||
| Outlook for business | ||||||
| Net % "good" in next three months | 8/2005 | 66 | 51 | 55 | 62 | |
| Prior qtr. | 62 | 61 | 64 | 61 | ||
| Reason for optimism | ||||||
| % Sales prospects | 8/2005 | 43 | 49 | 41 | 37 | |
| Prior qtr. | 42 | 46 | 41 | 45 | ||
| % Lower costs | 8/2005 | 4 | 3 | 1 | 3 | |
| Prior qtr. | 2 | 5 | 3 | 2 | ||
| % Price increases | 8/2005 | 3 | 1 | 2 | 4 | |
| Prior qtr. | 5 | 4 | 5 | 2 | ||
| % Greater productivity | 8/2005 | 12 | 16 | 17 | 16 | |
| Prior qtr. | 16 | 12 | 14 | 15 | ||
| % Government policies | 8/2005 | 6 | 2 | 2 | 4 | |
| Prior qtr. | 4 | 5 | 4 | 4 | ||
| % Seasonal weather | 8/2005 | 11 | 11 | 9 | 10 | |
| 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 | ||
| Mo. | Ill. | Iowa | Tenn. | |||
| Sales and earnings (last quarter) | ||||||
| Sales | ||||||
| Net % sales "good" | 8/2005 | 46 | 39 | 43 | 41 | |
| Prior qtr. | 45 | 34 | 55 | 36 | ||
| Profits | ||||||
| Net % profits "good" | 8/2005 | 27 | 22 | 25 | 27 | |
| Prior qtr. | 24 | 15 | 33 | 24 | ||
| Employment | ||||||
| Current job openings (one or more) | ||||||
| % "Yes" | 8/2005 | 20 | 18 | 18 | 20 | |
| Prior qtr. | 19 | 19 | 16 | 15 | ||
| Per employee payroll cost | ||||||
| Net % "risen" | 8/2005 | 13 | 17 | 18 | 15 | |
| Prior qtr. | 16 | 11 | 16 | 13 | ||
| Employee cost pressures (greater) | ||||||
| % Wages | 8/2005 | 58 | 51 | 56 | 59 | |
| Prior qtr. | 54 | 51 | 58 | 53 | ||
| % Benefits | 8/2005 | 24 | 34 | 28 | 24 | |
| Prior qtr. | 26 | 29 | 24 | 29 | ||
| Mo. | Ill. | Iowa | Tenn. | |||
| Productivity | ||||||
| Upgraded technology/processes (last three months) | ||||||
| % "Yes" | 8/2005 | 42 | 45 | 38 | 41 | |
| Prior qtr. | 46 | 44 | 33 | 40 | ||
| Made capital expenditure(s) (last three months) | ||||||
| % "Yes" | 8/2005 | 40 | 43 | 43 | 39 | |
| Prior qtr. | 43 | 43 | 36 | 38 | ||
| Made expenditure to train employee(s) (last three months) | ||||||
| % "Yes" | 8/2005 | 38 | 39 | 40 | 39 | |
| Prior qtr. | 35 | 40 | 33 | 36 | ||
| Capacity utilization - can increase sales 10% without new inputs | ||||||
| % "Yes" | 8/2005 | 54 | 54 | 52 | 49 | |
| Prior qtr. | 49 | 56 | 53 | 56 | ||
| Credit availability (last three months) | ||||||
| % All credit needs satisfied | 8/2005 | 39 | 40 | 41 | 35 | |
| Prior qtr. | 41 | 41 | 41 | 43 | ||
| % All credit needs not satisfied | 8/2005 | 6 | 5 | 6 | 6 | |
| Prior qtr. | 5 | 6 | 4 | 5 | ||
| % No credit needs | 8/2005 | 47 | 49 | 47 | 53 | |
| Prior qtr. | 45 | 46 | 49 | 47 | ||
| Mo. | Ill. | Iowa | Tenn | |||
| Prices | ||||||
| Purchasing prices (last three months) | ||||||
| Net % increased | 8/2005 | 58 | 51 | 59 | 58 | |
| Prior qtr. | 53 | 47 | 58 | 52 | ||
| Selling prices (last three months) | ||||||
| Net % increased | 8/2005 | 18 | 14 | 15 | 13 | |
| Prior qtr. | 20 | 17 | 22 | 17 | ||
| Miscellaneous | ||||||
| Involvement in start of another business | ||||||
| % "Yes" | 8/2005 | 13 | 9 | 9 | 10 | |
| Prior qtr. | 11 | 9 | 9 | 11 | ||
| Single most important business problem | ||||||
| % Weak sales | 8/2005 | 9 | 9 | 9 | 8 | |
| Prior qtr. | 12 | 13 | 9 | 10 | ||
| % Taxes | 8/2005 | 9 | 13 | 10 | 13 | |
| Prior qtr. | 12 | 15 | 11 | 11 | ||
| % Employee quality/costs | 8/2005 | 12 | 8 | 8 | 10 | |
| Prior qtr. | 7 | 6 | 7 | 9 | ||
| % Insurance | 8/2005 | 20 | 14 | 20 | 19 | |
| Prior qtr. | 19 | 17 | 19 | 15 | ||
| % Big-business competition | 8/2005 | 13 | 15 | 18 | 11 | |
| Prior qtr. | 12 | 14 | 17 | 15 | ||
| % Inflation/Rising prices | 8/2005 | 13 | 11 | 11 | 13 | |
| Prior qtr. | 13 | 13 | 17 | 14 | ||
| % Credit availability/Interest rates | 8/2005 | 4 | 3 | 2 | 2 | |
| Prior qtr. | 3 | 3 | 4 | 4 | ||
| % Regulations/Red tape | 8/2005 | 6 | 9 | 9 | 8 | |
| Prior qtr. | 8 | 8 | 7 | 8 | ||
| Missouri Quarterly Spotlight | |
| In general, how satisfied are you with the direction that Missouri is headed? Are you very satisfied, somewhat satisfied, not too satisfied or not at all satisfied? | |
| Very satisfied | 11% |
| Somewhat satisfied | 59% |
| Not too satisfied | 16% |
| Not at all satisfied | 7% |
| Don't know/Refused | 7% |
| Total | 100% |
| What do you value most in the area where you do business? | |
| Quality of life | 39% |
| Physical environment | 5% |
| Opportunity | 15% |
| Vibrance and vitality | 2% |
| My roots are here | 32% |
| Other | 2% |
| Don't know/Refused | 5% |
| Total | 100% |
The Poll
NFIB’s Missouri Small-Business ConditionsSM is a telephone survey of a random sample of Missouri 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.
