North Shore Poised for Small Business Growth

Enterprise Center survey released today shows strong commitment to job growth by North Shore small businesses in 2010

 Salem MA—December 10, 2009—53% of businesses surveyed by the Enterprise Center at Salem State College—a small business growth center—report that they are “highly likely” to grow in 2010 and 31% plan to hire employees in 2010.  Extrapolated throughout Essex County this result implies that small businesses (sole proprietors plus businesses with 25 or fewer employees) could add as many as 13,000 jobs in 2010.   The survey was taken in October and November 2009.

“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% 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.”

 More than 80% of respondents expect to sell more products or services, 53% plan to come out with a new product or service.  27% expect to expand within the US and another 12% see themselves expanding internationally.  17% want more office space and 19% will expand by adding more equipment.

 “This is a very upbeat report.  Of those who plan to grow 66% say they will do so without additional funding. But for those seeking funding 50% plan to go to a bank, 57% would like to find angel investors, and 35% will ask family and friends,” Sullivan said.

 Businesses on the Enterprise Center’s mailing list were invited to participate.  459 or 12% responded.  “Our programs fit well with the needs identified by the survey,” said Sullivan.  68% say they need Sales, Marketing, and Social Media, while 52% identify Strategic Planning.

 The Enterprise Center’s programs are geared toward small businesses and start-ups.  This is reflected by the survey in which 90% of respondents were sole proprietors or businesses with no more than 25 employees.  The most encouraging results in the entire survey is that a surprising number of businesses responding (132) plan to create new jobs in the coming year:

 Of sole proprietors plus those now employing 25 or fewer people, 32% expect to hire new employees.  If they do so, 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.  (Larger businesses responding to the survey expect to barely hold their own.)  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.

 By themselves these small companies could account for more than 3 % job growth in the entire economy next year.  However, this result might not be as beneficial as it seems.  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. “.