Small business sentiment holds steady in California

Small business is the engine room of the larger economy. It’s where ideas start and fail, develop and die and where those that survive, get stronger and thrive.

Thumbtack.com is a web portal where a consumer can find a professional resource to complete any project, anywhere, anytime. From painting a home to training a dog to finding a wedding planner to finding a voice coach. It has annual revenue of over one billion dollars and completes over five million projects each year.

Thumbtack.com has just completed a national survey of business owner sentiment, that is, they wanted to know from small business owners what they think and feel about the economy.

What’s happening in California?

The national small business economic optimism in October came in with a score of 63.75 on a 100-point scale. California came in just under at 63 and was ranked 11th nationwide.
For California, in January to March the score was 65 while April to August the score was 64.
Midwestern and northeastern states were the least optimistic in October, while only southern states as a region had a better outlook than the national average. Sentiment in the west has for the past three months closely mirrored the national average.

What’s California’s top problems?

The survey asked the question of small business owners, what are your top problems and received 838 responses.

As the graphic shows below, 16.6% of respondents identified uncertain economic conditions, 13.5% said access to credit, 10.4% highlighted other issues, 10% mentioned competition from big business or overseas and 9.2% said poor sales.

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How does the future look?

Below is a graphic that shows how small business owners feel about the future or their sentiment. (To make the graphic larger, simply click on it.)

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The survey asked a range of questions including financial and revenue outlook, as well as profitability, business conditions, getting loans, hiring employees, passing on costs and more.

A very negative response was in dark blue, a negative response was in light blue, a neutral response was gray, a positive response was light orange and a very positive response was bright orange.

Some of the questions asked and the response is as follows.

How do you feel your company’s financial situation will be in three months from now? 73.6% said it will be a little better or substantially better.
How do you expect your company’s revenue to change over the next three months? 70.2% said it would increase by at least 1% and more than 10%.
How do you expect your company’s profitability to change over the next three months? 66.1% said it would increase by at least 1% and more than 10%.
How do you expect business conditions in the general economy will be in the next 3 months compared to now? 49.9% said it would be a little to much better than it is now.
Have you filled or attempted to fill any full-time or part-time job openings over the past three months? 72% said no.

If you would like more information about the survey, please click this link.

The economy constantly and often dynamically changes momentum. Do you remember a few weeks ago we were worrying about the slow down in China, what has happening in Greece and Spain?

These worries are part of the global capitalist system but in the US, the economy appears to be gaining strength with California enjoying its share.

Hopefully with some rain over the next few months, the concerns from the drought will fade and we have made an adjustment of how to use much less water.

If you would like more information about selling a business, buying a business, buying a franchise or a related service such as valuing a business, please visit my webpage Services and choose from the drop down menu the information you would like.

For more immediate help, you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

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