Release Date: 09/ 01/ 2005
CONTACT: Michael Fields, (803) 254-1476 or Jim Brown, (615) 874-5288
Nearly Seven in 10 Palmetto State Entrepreneurs Have Growth Plans
COLUMBIA, S.C. -- Sales and profits in South Carolina are among the best in the nation, according to this quarter’s South Carolina Small-Business ConditionsSM. The report’s data, which was released today by the National Federation of Independent Business/South Carolina, provides an overview of small-business conditions within South Carolina and compares them with neighboring states.
A net 55 percent (positive percent minus negative percent) of respondents said sales are “good,” up from a net 49 percent in June and net 43 percent in March. A net 40 percent said profits are “good,” the second-highest reading among the 26 states surveyed and best in the Southeast peer group. This quarter’s figure was above the net 34 percent reading in June and well above the net 24 percent reading in March. Sixty-nine percent of respondents have growth plans, either to expand slowly (47 percent) or rapidly (22 percent), while 21 percent said they plan to “stay the same” and 3 percent plan to “consolidate some.”
“The Small-Business ConditionsSM survey data indicates entrepreneurs are busy filling orders, taking care of their customers and earning profits – a very good sign for South Carolina’s economy,” NFIB/South Carolina State Director Michael Fields said. “Some of this quarter’s strength may be due to seasonality and a strong tourist season, but the results speak for themselves – South Carolina’s risk-takers are working in one of the best areas of the country.”
A net 45 percent of the state’s small employers believed business conditions in their market area are “good,” unchanged from last quarter and slightly ahead of North Carolina (net 43 percent) but behind Georgia (net 52 percent). Only a net 14 percent, however, said business conditions are “improving,” a steady decline from June (net 22 percent) and March (net 26 percent). The lower reading is an indication business conditions are leveling off at a relatively high level. A net 62 percent said their outlook for business is “good” over the next three months, a seven-percentage point decline from June.
Inflationary pressures appear to be building. Average payroll cost has risen, according to 18 percent of respondents, up from last quarter’s 12 percent. Average prices paid for goods and services rose again this quarter to a net 53 percent, up from a net 51 percent and net 49 percent in the June and March quarters, respectively.
Asked to rank their most important business problem, South Carolina small-business owners cited insurance (16 percent), inflation and rising prices (15 percent), taxes (14 percent), and big-business competition (12 percent).
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.
| South Carolina Small-Business ConditionsSM | ||||||
| This chart shows the results from South Carolina and its comparative standing among selected nearby states. | ||||||
| S.C. | Ga. | N.C. | ||||
| Business Climate | Survey Date | |||||
| Overall state business environment | ||||||
| Net % supportive of small business | 8/2005 | 40 | 37 | 38 | ||
| Prior qtr. | 38 | 36 | 42 | |||
| Business conditions in market area | ||||||
| Net % "good" | 8/2005 | 45 | 52 | 43 | ||
| Prior qtr. | 45 | 45 | 44 | |||
| Net % "improving" | 8/2005 | 14 | 25 | 14 | ||
| Prior qtr. | 22 | 26 | 25 | |||
| Outlook for business | ||||||
| Net % "good" in next three months | 8/2005 | 62 | 67 | 65 | ||
| Prior qtr. | 69 | 64 | 65 | |||
| Reason for optimism | ||||||
| % Sales prospects | 8/2005 | 40 | 51 | 43 | ||
| Prior qtr. | 43 | 40 | 39 | |||
| % Lower costs | 8/2005 | 3 | 5 | 2 | ||
| Prior qtr. | 4 | 6 | 3 | |||
| % Price increases | 8/2005 | 3 | 1 | 4 | ||
| Prior qtr. | 3 | 6 | 4 | |||
| % Greater productivity | 8/2005 | 17 | 11 | 18 | ||
| Prior qtr. | 15 | 13 | 12 | |||
| % Government policy | 8/2005 | 1 | 6 | 4 | ||
| Prior qtr. | 3 | 6 | 4 | |||
| % Seasonal/Weather | 8/2005 | 11 | 8 | 9 | ||
| Prior qtr. | - | - | - | |||
| Reason for pessimism | ||||||
| % Sales prospects | 8/2005 | IC* | IC | IC | ||
| Prior qtr. | IC | IC | IC | |||
| % Cost increases | 8/2005 | IC | IC | IC | ||
| Prior qtr. | IC | IC | IC | |||
| % Pressure on selling prices | 8/2005 | IC | IC | IC | ||
| Prior qtr. | IC | IC | IC | |||
| % Lower productivity | 8/2005 | IC | IC | IC | ||
| Prior qtr. | IC | IC | IC | |||
| % Government policy | 8/2005 | IC | IC | IC | ||
| Prior qtr. | IC | IC | IC | |||
| S.C. | Ga. | N.C. | ||||
| Sales and earnings (last quarter) | ||||||
| Sales | ||||||
| Net % sales "good" | 8/2005 | 55 | 52 | 50 | ||
| Prior qtr. | 49 | 42 | 45 | |||
| Profits | ||||||
| Net % profits "good" | 8/2005 | 40 | 35 | 32 | ||
| Prior qtr. | 34 | 28 | 32 | |||
| Employment | ||||||
| Current job openings (one or more) | ||||||
| % "Yes" | 8/2005 | 17 | 23 | 15 | ||
| Prior qtr. | 21 | 18 | 19 | |||
| Per employee payroll cost | ||||||
| Net % "risen" | 8/2005 | 15 | 15 | 17 | ||
| Prior qtr. | 12 | 12 | 12 | |||
| Employee cost pressures (greater) | ||||||
| % Wages | 8/2005 | 57 | 55 | 54 | ||
| Prior qtr. | 60 | 60 | 57 | |||
| % Benefits | 8/2005 | 23 | 23 | 28 | ||
| Prior qtr. | 21 | 21 | 24 | |||
| S.C. | Ga. | N.C. | ||||
| Productivity | ||||||
| Upgraded technology/processes (last three months) | ||||||
| % "Yes" | 8/2005 | 37 | 46 | 44 | ||
| Prior qtr. | 42 | 43 | 34 | |||
| Made capital expenditure(s) (last three months) | ||||||
| % "Yes" | 8/2005 | 41 | 36 | 43 | ||
| Prior qtr. | 39 | 36 | 42 | |||
| Made expenditure to train employee(s) (last three months) | ||||||
| % "Yes" | 8/2005 | 43 | 42 | 42 | ||
| Prior qtr. | 35 | 40 | 41 | |||
| Capacity utilization - can increase sales 10% without new inputs | ||||||
| % "Yes" | 8/2005 | 54 | 61 | 52 | ||
| Prior qtr. | 50 | 49 | 49 | |||
| Credit availability (last three months) | ||||||
| % All credit needs satisfied | 8/2005 | 38 | 39 | 39 | ||
| Prior qtr. | 40 | 43 | 39 | |||
| % All credit needs not satisfied | 8/2005 | 6 | 5 | 5 | ||
| Prior qtr. | 5 | 7 | 7 | |||
| % No credit needs | 8/2005 | 49 | 52 | 52 | ||
| Prior qtr. | 50 | 42 | 48 | |||
| S.C. | Ga. | N.C. | ||||
| Prices | ||||||
| Purchasing prices (last three months) | ||||||
| Net % increased | 8/2005 | 53 | 55 | 54 | ||
| Prior qtr. | 51 | 49 | 51 | |||
| Selling prices (last three months) | ||||||
| Net % increased | 8/2005 | 14 | 17 | 14 | ||
| Prior qtr. | 21 | 15 | 15 | |||
| Miscellaneous | ||||||
| Involvement in start of another business | ||||||
| % "Yes" | 8/2005 | 9 | 13 | 9 | ||
| Prior qtr. | 9 | 10 | 11 | |||
| Single most important business problem | ||||||
| % Weak sales | 8/2005 | 11 | 11 | 9 | ||
| Prior qtr. | 9 | 13 | 10 | |||
| % Taxes | 8/2005 | 14 | 13 | 13 | ||
| Prior qtr. | 13 | 13 | 10 | |||
| % Employee quality/costs | 8/2005 | 7 | 13 | 10 | ||
| Prior qtr. | 9 | 12 | 8 | |||
| % Insurance | 8/2005 | 16 | 12 | 17 | ||
| Prior qtr. | 14 | 11 | 17 | |||
| % Big-business competition | 8/2005 | 11 | 15 | 14 | ||
| Prior qtr. | 13 | 11 | 14 | |||
| % Inflation/Rising prices | 8/2005 | 15 | 12 | 12 | ||
| Prior qtr. | 16 | 16 | 16 | |||
| % Credit availability/Interest rates | 8/2005 | 3 | 2 | 3 | ||
| Prior qtr. | 3 | 3 | 2 | |||
| % Regulations/Red tape | 8/2005 | 6 | 9 | 8 | ||
| Prior qtr. | 8 | 7 | 5 | |||
* Insufficient cases
| South Carolina Quarterly Spotlight | |
| Which best describes your long-term intentions for your business? Would you like to... | |
| Grow rapidly | 22% |
| Grow slowly | 47% |
| Stay about the same | 21% |
| Consolidate some | 3% |
| Don't know/Refused | 8% |
| Total | 100% |
The Poll
NFIB’s South Carolina Small-Business ConditionsSM is a telephone survey of a random sample of South Carolina 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.
