A survey of small businesses on Cape Ann and the North Shore shows that owners are optimistic when it comes to growth in the coming year.
Fifty-three percent 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 32 percent 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.
"We were very surprised so many people expected to grow," said Jennifer Lincoln, the center's marketing director.
"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."
Other results of the survey:
More than 80 percent 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.
12 percent see themselves expanding internationally.
17 percent want more office space.
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; 17 percent of the list is comprised of businesses located on Cape Ann. About 450 or 12 percent of businesses responded.
"Our programs fit well with the needs identified by the survey," said Sullivan. Of those answering the survey, 68 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. This is reflected by the survey in which 90 percent of respondents were sole proprietors or businesses with no more than 25 employees. The most encouraging results in the entire survey is that a 132 of businesses plan to create new jobs in the coming year.
If they do so, the surveyed small businesses alone will create at least 131 jobs by next year. Larger businesses responding to the survey expect to barely hold their own. Since small businesses account for roughly 160,000 jobs in Essex County, the survey's sample suggests county-wide job growth of 13,000.
By themselves these small companies could account for more than 3 percent job growth in the entire economy next year. 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."
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