Small businesses expect the West Michigan economy to slow down in the coming year, according to a recent survey by the Center for Entrepreneurship in the Seidman School of Business at Grand Valley State University.
The center, with the support of First Community Resources Inc., conducts quarterly surveys of confidence among regional small businesses, including those in Kent, Ottawa, Muskegon, and Allegan counties. In July, 97 responses were received from 300 queries mailed to small businesses with fewer than 25 employees.
The index of projected confidence in next year's economy slipped to 73 percent, down from 81 percent confidence in the current economy. This marks the highest recorded difference between present and future confidence.
The 81 percent confidence in the current economy has remained the same for the past three years.
The survey also determined the following:
Employment changes
In the next six months about 18 percent of respondents expect additions to their workforces. In the long-term, 13 percent of respondents said they expect their employment to increase by 50 percent or more in the next two years. This is the lowest response since the survey began in January 1997.
Sales Changes
Forty-three percent of respondents expect sales to increase, continuing a downward trend of the past four quarters from a high of 58 percent. Considering only those expecting increases, their average increase was 14 percent, the lowest level yet reported.
