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Survey: Chicagoland small business owners “have lost confidence in the local, state and national economies over the past year”

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* Press release…

To combat challenges created by uncertain economic conditions, Chicagoland small businesses plan to expand business operations in 2016 to continue revenue growth.

The results of the second annual Chicagoland Small Business Economic Outlook Survey, conducted by the Chicagoland Chamber of Commerce in partnership with Loyola University Chicago’s Quinlan School of Business, reveal that local business owners are realistic about the current state of business. Business owners have lost confidence in the local, state and national economies over the past year, and revenue growth remains their top concern.

“Only 28 percent of business owners surveyed believe Chicagoland’s economy will strengthen over the next year, down from 42 percent last year,” said Katie Fitzpatrick, Executive Director of Programs at the Chicagoland Chamber of Commerce. “These survey results show us that in order to combat current economic conditions and restrictive public policies, business owners are forced to be realistic and find new ways to expand their business operations.”

Key takeaways from the 2016 Chicagoland Small Business Outlook Survey:

· Small businesses are significantly less confident than last year in the economy at the local, state and national levels
· More than three in four respondents plan to grow their business [in the coming year]
· 38 percent expect to hire additional workers
· 52 percent plan to expand within Illinois (up from 45 percent last year)
· Nearly one half of respondents feel negatively impacted by local taxation
· The top three areas small businesses need support are marketing, technology and business planning

“Revenue growth remains a top concern for small businesses,” said Dr. Alexander Krasnikov, assistant professor, Loyola University Chicago’s Quinlan School of Business. “These businesses are increasingly self-reliant, looking to grow through investment in things like marketing and tech platforms, hiring part-time employees, and taking on more clients.”

Given the vital role small businesses play in creating jobs and anchoring communities, this study will be used to better understand the needs and expectations of local small businesses and entrepreneurs and help shape Chamber programs and policies to best suit the needs of small businesses in Chicagoland.

“Small businesses are the heart of Chicago’s neighborhood economy and we must continue providing them with resources they need to thrive,” said Kurt Summers, Treasurer of the City of Chicago. “I am pleased to see the results that highlight over 50 percent of small business owners surveyed are planning on expanding in Illinois in 2016. The Treasurer’s Office is committed to providing new and innovative ways to help small business owners access capital in order to grow and expand in Our Chicago.”

The 2016 Chicagoland Small Business Outlook Survey was conducted electronically in October and November of 2015, with 574 small businesses participating. Several partners contributed to the survey, including the Better Business Bureau, Constant Contact, Blue Daring the Office of the City Treasurer.

Click here for more results.

Thoughts?

* Related…

* The 10 most in-demand Chicago jobs in 2016 (that pay $60,000 plus)

* Minority business numbers growing by double digits

posted by Rich Miller
Tuesday, Jan 19, 16 @ 11:09 am

Comments

Maybe if both the Chicago and State Chamber did less complaining about and trashing Illinois, they could help their members.

Comment by 360 Degree TurnAround Tuesday, Jan 19, 16 @ 11:21 am
–· Small businesses are significantly less confident than last year in the economy at the local, state and national levels
· More than three in four respondents plan to grow their business [in the coming year]
· 38 percent expect to hire additional workers
· 52 percent plan to expand within Illinois (up from 45 percent last year)–

For all those negative thoughts, they certainly are taking positive actions.

That’s what grownups do.

Comment by Anonymous Tuesday, Jan 19, 16 @ 11:26 am
My sense is that access to customers is a more critical challenge than access to capital.

Comment by Bill White Tuesday, Jan 19, 16 @ 11:36 am
PS - Access to customers with disposable income they can spend.

Comment by Bill White Tuesday, Jan 19, 16 @ 11:36 am
The most in demand jobs all require a college education. All but one require a bachelor degree or higher. However, Governor Ahab refuses to do his job and is taking away higher education from thousands of Illinois college students. How is this long term gain for Illinois?

Comment by RIJ (formerly PolPal56) Tuesday, Jan 19, 16 @ 11:41 am
“Due to the uncertain economic conditions, we plan to expand operations in 2016.”

Oooookaaaaay…

– MrJM

Comment by @MisterJayEm Tuesday, Jan 19, 16 @ 11:42 am
“The most in demand jobs all require a college education. All but one require a bachelor degree or higher. However, Governor Ahab refuses to do his job and is taking away higher education from thousands of Illinois college students. How is this long term gain for Illinois?”
————-

Did you happen to check out the link on the top 10 job categories? Short take: They are virtually all college degrees in STEM related jobs.

Make a point of providing financial assistance to students in the STEM fields of study for those types of jobs.

I know, everybody says “You can’t do that”, or “The laws/regulations don’t allow for doing that”. Well, the reality is that it can happen if you really want to make it happen. You change the rules.

But if you are invested in maintaining the status quo, it’s not going to happen.

So if that’s the case, we’re back to stalemate.

Comment by Judgment Day Tuesday, Jan 19, 16 @ 12:19 pm
Rauner lost this group when he revealed to have no interest in building Illinois, only in tearing it down until he wins politically.

Rauner could have done what every new governor did and prove himself able to do the job, and able to build a governing consensus. Instead he torched any stability left in Illinois by “shaking up Springfield”.

He had a year to do something to replace the instability he was generating, but he kept right on creating more instability instead. Now, he has the public workforce being held as hostages until they bow down to his extremist agenda.

Businesses need stability. Venture capitalists who feed off the lifeblood of others who create business, don’t know how to create stability. A governor rich on instability, only generates what works for him - instability.

Rauner is killing Illinois.

Comment by VanillaMan Tuesday, Jan 19, 16 @ 12:32 pm
–But if you are invested in maintaining the status quo, it’s not going to happen.–

The “status quo” as of July 1, 2015, is that the state has ended funding for higher education and MAP assistance to all students.

Comment by wordslinger Tuesday, Jan 19, 16 @ 12:33 pm
== Did you happen to check out the link on the top 10 job categories? Short take: They are virtually all college degrees in STEM related jobs. ==

Are there enough STEM jobs for everyone?

Becoming a STEM qualified worker is great advice for particular individuals but does not solve the underlying problems with the economy.

Comment by Bill White Tuesday, Jan 19, 16 @ 12:33 pm
Apparently this group has decided the only solution for them is to grow their businesses enough to become part of the 10% with a goal of becoming part of the 1%.

Comment by RNUG Tuesday, Jan 19, 16 @ 12:42 pm
“Are there enough STEM jobs for everyone?

Becoming a STEM qualified worker is great advice for particular individuals but does not solve the underlying problems with the economy.”
———

Bill:

To Part 1, don’t know. Not sure. But I do know that the argument being used to promote and justify the entire H1-B program is that we (The USA) are not producing enough STEM graduates.

IMO, that’s complete, utter BS! But the pol’s on both sides have bought into it. So, let’s knock down their arguments.

You want to make a difference with jobs? Kill the H1-B program, because it’s being abused to strip jobs away from American workers (examples all over the place). But to do that, we’ve got to start by emphasizing more educational training in the STEM areas of study.

Best starting point from my POV is to limit the MAP grants to STEM areas of study.

Comment by Judgment Day Tuesday, Jan 19, 16 @ 12:50 pm
–Best starting point from my POV is to limit the MAP grants to STEM areas of study.–

That might be your “POV”, but you’re not making any kind of coherent argument.

Your ax seems to be grinding on immigration. You’ve made no case whatsoever for limiting the fields of study for MAP students.

Comment by wordslinger Tuesday, Jan 19, 16 @ 12:58 pm