SSC survey on business growth, hiring encouraging

SALEM – More than half the businesses surveyed by the Enterprise Center at Salem State College say they are “highly likely” to grow in 2010.The on-campus small business incubator released a report last week noting that 53 percent of the businesses surveyed expect to grow while 31 percent plan to hire employees in the coming year.The data, extrapolated from sole-proprietor businesses with 25 or fewer employees in Essex County, could add as many as 13,000 jobs over the next 12 months.The survey was taken in October and November.”That is great news,” said Christine Sullivan, executive director of the center. “We are all used to a lot of doom and gloom, but this survey tells a very different story. With 86 percent of North Shore businesses surveyed telling us that they are highly or somewhat likely to grow in 2010 we are very encouraged about the health of our business community.”The report states that more than 80 percent of respondents expect to sell more products or services; 53 percent plan to come out with a new product or service; 27 percent expect to expand within the United States; another 12 percent see themselves expanding internationally; 17 percent want more office space and 19 percent will expand by adding more equipment.”This is a very upbeat report. Of those who plan to grow, 66 percent say they will do so without additional funding. But for those seeking funding, 50 percent plan to go to a bank, 57 percent would like to find angel investors and 35 percent will ask family and friends,” Sullivan said.Businesses on the Enterprise Center’s mailing list were invited to participate. A total 459 or 12 percent responded.”Our programs fit well with the needs identified by the survey,” said Sullivan. “Sixty-eight percent say they need sales, marketing and social media, while 52 percent identify strategic planning.”The Enterprise Center’s programs are geared toward small businesses and start-ups. According to Sullivan, this is reflected by the survey in which nine of 10 respondents were sole proprietors or businesses with no more than 25 employees.The most encouraging results in the entire survey is that 132 businesses responding plan to create new jobs in the coming year, said Sullivan, adding that if that happens, the surveyed small businesses alone (221 sole proprietors plus 184 businesses employing between 1 and 25) will create at least 131 jobs by next year.”Since sole proprietors and businesses with 25 or fewer employees currently account for roughly 160,000 jobs in Essex County, our survey finding of at least 131 new jobs in the sample suggests county-wide job growth of 13,000,” she said.By themselves, these small companies could account for more than 3 percent job growth in the entire economy next year, according to Sullivan. However, this result might not be as beneficial as it seems, she said.A recent report commissioned by The Enterprise Center found that between 2001 and 2006, sole proprietors and small businesses generated significant job growth, but that half of that growth was offset by job cuts by larger businesses. “Small businesses are continuing to grow in impact,” said Sullivan. “Going forward, they will contribute more than their share to the economic recovery.”