Thanks for participating in our 2010 Q3 economic survey, which was conducted in September. Question-by-question results are below, but before you wade through those, let us take you through the highlights:
The availability of equity funding and credit top Nashville entrepreneurs’ concerns heading into the end of the year. Despite these concerns, a majority plan to increase spending on staffing, compensation and technology.
When compared to the same survey from the first quarter of 2010, 60% remain concerned or very concerned about the economic climate, that percentage is down from 82% six months ago.
Full results and observations below. If you have any questions or comments about the results, or want to weigh in with your insights, please leave a comment on the post. Drum roll please…
1. Please rate your level of concern about the effect of the U.S. financial climate on your business.
- 39% Very concerned
- 23% Concerned
- 29% Neutral
- 10% Unconcerned
- 0% Very unconcerned
(Compared to our Q1 2010 survey, the ‘Very concerned’ group of responders rose 10%, from 29%)
2. Please rate your level of concern about securing funding for your business.
- 10% Very concerned
- 23% Concerned
- 32% Neutral
- 29% Unconcerned
- 7% Very unconcerned
(‘Very concerned’ group down 15%, from 25%, from the Q1 survey)
3. Please rate your level of concern about the impact of rising health care costs on your business.
- 32% Very concerned
- 39% Concerned
- 19% Neutral
- 10% Unconcerned
- 0% Very unconcerned
(‘Very concerned’ responders rose 11%, from 21%)
4. How do you believe your business will be affected by the new health reform act?
- 19% Very negative effect
- 42% Somewhat negative effect
- 29% No effect
- 7% Somewhat positive effect
- 3% Very positive effect
(61% of responders believe that the health care reform act will have a negative effect, compared to 10% who believe that the reform will have a positive effect)
Further insights from those anticipating a negative effect (these are anonymous of course!): “hiring freeze until understand costs;” “the cost of an employee will increase, which reduces ROI;” “It will cause private health insurance premiums to rise, as has already happened.”
Further insights from those anticipating no effect, or a positive effect: “This will add what the insurance industry really, really needs: Competition;” “Based on what I have reviewed from health care experts, it shouldn’t have an effect on a business our size.”
5. What factors do you see being of the most concern to entrepreneurs starting a business today?
- 42% Availability of equity funding
- 61% Availability of credit
- 16% Availability of customers
- 29% Availability of skilled workers
- 3% Availability of materials
- 23% Rapidly changing materials
- 32% Government regulations/interference
(Availability of credit is up from 39% in the first quarter, availability of funding is also up from 32%)
6. How do you expect your spending to change on staffing?
- 7% Increase substantially
- 52% Increase slightly
- 32% Stay the same
- 10% Decrease slightly
- 0% Decrease substantially
(60% will increase on staffing, down from 75% at the beginning of the year)
7. How do you expect your spending to change on employee compensation?
- 7% Increase substantially
- 45% Increase slightly
- 42% Stay the same
- 3% Decrease slightly
- 3% Decrease substantially
(Spending on compensation will increase for 54%, down from 63%)
8. How do you expect your spending to change on employee benefits?
- 3% Increase substantially
- 7% Increase slightly
- 84% Stay the same
- 7% Decrease slightly
- 0% Decrease substantially
9. How do you expect your spending to change on business travel?
- 3% Increase substantially
- 32% Increase slightly
- 58% Stay the same
- 3% Decrease slightly
- 3% Decrease substantially
10. How do you expect your spending to change on technology?
- 16% Increase substantially
- 42% Increase slightly
- 36% Stay the same
- 7% Decrease slightly
- 0% Decrease substantially
(60% will increase spending, down from 68% during the first quarter)
11. How do you expect your spending to change on marketing/advertising/PR?
- 13% Increase substantially
- 42% Increase slightly
- 45% Stay the same
- 0% Decrease slightly
- 0% Decrease substantially
(No respondent plans to decrease spending in these categories)
12. How do you expect your spending to change on outsourced business services?
- 3% Increase substantially
- 36% Increase slightly
- 61% Stay the same
- 0% Decrease slightly
- 0% Decrease substantially
(No decreases in this category either)
13. How much of a priority will “green” initiatives be for your business between now and the end of the year?
- 10% Much greater priority
- 3% Somewhat greater priority
- 48% About the same
- 19% Somewhat less priority
- 0% Much less priority
- 19% We don’t participate in any green initiatives
14. How do you expect your revenues to change in 2010 vs. 2009?
- 45% Increase substantially
- 42% Increase slightly
- 7% Stay the same
- 7% Decrease slightly
- 0% Decrease substantially
(The category of responders who believe that there revenues will increase substantially increased 9% from 36% in Q1)
15. Considering the current economic climate, how likely would your be to start a new business in 2010 compared to 2009?
- 23% Very likely
- 36% Somewhat likely
- 26% Equally as likely
- 13& Somewhat unlikely
- 3% Very unlikely
