Small Business Views Connecticut’s Conditions Favorably

WASHINGTON, D.C. — Connecticut’s overall business climate has remained stable, according to the Connecticut Small Business Conditions report. The new report’s data, which was released this month by the National Federation of Independent Business/Connecticut, provides an overview of small-business conditions within Connecticut and compares them with neighboring states.

“While there are still plenty of problems facing small firms today — from the high cost of health insurance to soaring unemployment insurance rates and mandated business costs — the overall outlook of small business owners is good,” said Armando Paolino, NFIB/Connecticut state director.

A net 14 percent of the state’s small employers believed the business environment was “supportive.” However, a net 33 percent reported business conditions in their market area as “good.” They also saw those conditions improving. A net 67 percent characterized the outlook for business over the next three months as “good,” citing sales prospects as the primary reason for their view.

Small business hiring has been steady in the last three months, with 22 percent noting they had “one or more” current job openings. Over the same three-month period, 43 percent of small business owners made capital expenditures. While 47 percent of the respondents reported spending on technology upgrades, the number of owners making expenditures for employee training was also 45 percent.

Of those surveyed in Connecticut a net 18 percent indicated that profits were “good” and a net 40 percent characterized sales as “good.” Overall, a net 60 percent of small employers reported that over the last three months their purchasing prices rose while a net 22 percent reported they had increased selling prices.

When asked to rank their most important business problem, Connecticut’s small business owners ranked insurance and competition from big business as the most serious of all conditions.

“As we see from the finding, the cost of insurance continues to be the dominant problems facing small firms today. Lawmakers have to get a handle on insurance costs,” said Mr Paolino.

The Small Business Conditions reports are developed from surveys of small business owners in 26 selected states. The surveys are designed to determine the condition of the small business economy in each particular state.

The surveys are conducted every three months and results are released on the first day of the month following completion.