A record number of area small businesses express confidence for 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 small businesses in west Michigan, including Kent, Ottawa, Muskegon and Allegan counties. In September, 144 responses were received from 300 queries mailed to west Michigan small businesses with fewer than 25 employees.
The survey also showed a record confidence level in the present economy, with 83 percent of respondents indicating confidence currently. The number is the highest level of confidence that has been recorded since the surveys began in June, 1997.
The survey also determined the following:
Employment changes
In the next six months about 85 percent of respondents expect no additions to employment (note that these firms are on average very small, with fewer than five employees). For those expecting increases, their average increase is about 26 percent. In the long term, 19 percent of respondents said they expect their employment to increase by 50 percent or more in the next two years. This is within the range of prior surveys.
Sales Changes
Forty-eight percent of respondents expect sales to increase, a level similar to recent surveys. Considering only those expecting increases, their average increase was 16 percent, slightly lower than the levels seen earlier in the year.
Impact of the Route 131 S-Curve Reconstruction
As a special question, business owners from the four counties in west Michigan were asked to assess the impact the reconstruction of the S-Curve will have on their sales during the closure. Sixty-five percent said they expect no impact. Another 17 percent said they did not have enough information to judge at this point. Thus about 18 percent of businesses expect the closure to affect their sales, either for better or worse. In fact, about a quarter of those expecting an impact said they expect higher sales due to the closure.
