The smallest firms in west Michigan are expressing a record level of confidence for their businesses next year.
The latest quarterly survey of small business confidence, conducted by GVSU's Center for Entrepreneurship, expressed a confidence level of 80 percent for next year, the highest since the quarterly confidence index began in June, 1997. More than 300 businesses with fewer than 25 employees received the recent survey, and 87 responded.
This record level reflects the growing and continuing optimism of west Michigan small businesses, said Tom Dandridge, the center's director.
Dandridge also noted that 75 percent of the businesses responding to the January survey do not expect to hire additional employees in the next six months. Of those who do expect to hire, the average anticipated employment increase is 24 percent.
Note that these are very small firms, Dandridge points out. The average company has fewer than five employees, and some employ only one person.
He added that all of the small firms planning to hire will look locally for employees. Most, 81 percent, will seek referrals from existing employees. Other recruiting tools indicated were newspaper ads (55%), trade associations (34%), recruiting at colleges (29%), and use of the Internet (23%).
Finally, 42 percent of the small businesses surveyed expected sales to increase in the next six months. The average projected sales increase is 15 percent.
Overall, these projections present a picture of continued optimism and expectations of stability, not dramatic change or growth for this very significant portion of the economy, Dandridge said.
