The economy is slowing and unemployment is rising.
But if the confidence of small businesses is anything to go by, then Orange County could dodge the economic storm lingering over other parts of the country.
A recent Union Bank of California survey found most small businesses in OC are optimistic about 2001.
The survey focused on the top concerns of small businesses, their anticipated capital spending in 2001 and their hiring trends this year.
“When small businesses do well, it helps the county,” said Mike Sullins, senior vice president and regional manager at Union Bank. “If our customers are positive, then we go ahead and support them.”
Sixty-four percent of small businesses surveyed said they expected to make more profit in 2001 than they did last year. Only 14% said their profits would be lower. Another 20% felt that their profits would remain at last year’s level.
Still, small businesses are concerned about the slowing economy.
Only 45% of those surveyed said their payrolls would be higher this year than last, while 42% said their employment would remain the same. One in 10 said they might need fewer employees than last year.
Despite a national dip in capital spending, about half, or 49%, of OC small businesses surveyed said they plan to spend more on business assets this year. The remainder said they do not have any capital expenditure plans for this year.
The survey showed that the economy was the top concern for 29% of the business surveyed. Interestingly, California’s power crisis was not a big worry for the small businesses.
“I think the small businesses in Orange County will not be impacted by the slowdown in the economy mainly because of diversity,” Sullins said. “I am not overly concerned about 2001.” n
