Local Business Climate

1. 1

   Sixty-five (65) percent of small-business owners think their local community has a favorable business climate, including 9 percent who think the climate is very favorable. In contrast, 20 percent think their community’s climate is unfavorable, including 5 percent who think it is very unfavorable.

2. 2

   Among the characteristics of the local business climate most valued by small-business owners are: community support, people working together, a strong customer base, constant growth/expansion, a close-knit community, opportunity/potential, diversity/variety, and quality of life. Among the characteristics of the local business climate least valued are: government interference/regulations, cost of doing business/taxes, no support/encouragement, competition, closed businesses, and a no-change attitude.

3. 3

   Two-thirds think a “real community spirit” exists in their area. Other factors influencing the business climate most favorably include the local business community working closely together; cooperative relations between the public school system and the local business community; and, local colleges and universities, bankers and investors, and community organizations going out of their way to help local businesses, including those just starting.

4. 4

   Half (50%) disagree with the proposition that local governments in the area go out of their way to create a favorable business climate.

5. 5

   Small-business owners typically assess the entrepreneurial attitudes exhibited by people in the community as positive. For example, 74 percent believe that the local business community is open to new-comers and 65 percent think that their community’s social values and culture stress the responsibility of the individual to manage his or her own life. But more disagree than agree that young people in the community are encouraged to be independent and start their own businesses.

6. 6

   Eighty-six (86) percent own a business that was founded in the community.

7. 7

   Twenty-four (24) percent are currently planning or considering a significant expansion of their business. Most (69%) intend to expand in their community. Of those intending to locate outside their community, business imperatives are pulling half of them to locate outside it and the local business climate is pushing 25 percent out of town.

8. 8

   Thirteen (13) percent are giving serious consideration to relocating their business outside the community where it is now located. Thirty-one (31) percent indicate that attractive conditions elsewhere are pulling them away while 47 percent say local business conditions are pushing them out.

9. 9

   Most small-business owners live near their businesses. It takes almost half (47%) just five minutes or less to commute between their home and business. Another 20 percent make the trip in six to 10 minutes.

10. 10

    Seventy-eight (78) percent of small-business owners have not moved their personal residence since occupying their current business premises. Of those who have moved their personal residence, somewhat over half have moved it closer to the business and somewhat under half have moved it farther away.

Volume 6, Issue 2, 2006
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation

• 2Was your business founded in the community where it is now located? Top 100
• 9Overall, is your community's business climate very favorable, favorable, neither favorable nor unfavorable, unfavorable, or very unfavorable? Top 100
• 1A(agree/disagree) The local media does a good job of covering community business news.
• 1B(agree/disagree) A real community spirit exists in your area.
• 1C(agree/disagree) Bankers and investors in the community go out of their way to help local businesses, including people trying to start them.
• 1D(agree/disagree) The local public school system works cooperatively with local business groups.
• 1E(agree/disagree) Local governments in the area go out of their way to create a favorable business climate for local businesses, including people trying to start them.
• 1F(agree/disagree) The local business community works closely together.
• 1G(agree/disagree) Local community groups and organizations go out of their way to support local businesses, including people trying to start them.
• 1H(agree/disagree) Area colleges and universities go out of their way to work with local businesses, including people trying to start them.
• 2aHow many years have you personally operated the business in this community?
• 3Has the community in which your current business is located changed dramatically, quite a bit, modestly, or not changed since you first started operation there?
• 3aHas the change in the community resulted in a more favorable, less favorable, or no change in the business climate?
• 4Are you currently planning or considering significant expansion of your business?
• 4aWill that expansion, if you go forward, occur in your current community or elsewhere?
• 4a1Why somewhere else? Is it because:?
• 5Are you considering moving your business to a different community?
• 5aWhy are you considering a move? Is it because:?
• 6About how long is the drive, in minutes, from where you live to where your business is located?
• 7Since first occupying your current business location, have you moved your personal residence much farther from it, farther, closer, much closer, or has there been no change?
• 8A(agree/disagree) The social values and culture of the community emphasize self-sufficiency, autonomy, and personal initiative.
• 8B(agree/disagree) Most leaders in your community are people who own their own businesses.
• 8C(agree/disagree) The social values and culture of the community encourage entrepreneurial risk-taking.
• 8D(agree/disagree) The local business community is open to new-comers.
• 8E(agree/disagree) Those with successful businesses get a lot more attention and admiration within the community.
• 8F(agree/disagree) Young people in the community are encouraged to be independent and start their own business.
• 8G(agree/disagree) The social values and culture of the community emphasize creativity and innovativeness.
• 8H(agree/disagree) The community has many examples of well-respected people who made a success of themselves by starting a business.
• 8I(agree/disagree) The social values and culture of the community stress the responsibility the individual has to manage his or her own life.