|
Next, 28%stated they started their business from the ground up, often working in basements and
<br /> L- after-hours until it grew. Seventeen percent cited using a great deal of hard work to get their
<br /> business off the ground, 7%stated they built the organization themselves, and 4%stated they
<br /> opened the business because they needed money. To finance their business, 5%stated they used
<br /> personal finances,4% received bank loans, and 3%a family loan.
<br /> Of the 977 responses to the question, 'Have you ever considered moving your business to
<br /> another part of the state?', 66%stated that they have not considered such a move. Of the people
<br /> who did respond that they had thought of moving, many gave responses regarding moving outside
<br /> of Minnesota, skewing the results. Of those that had considered a move, 19%wanted to do so to
<br /> access a better business environment (often citing moving to South Dakota to leave Minnesota's
<br /> taxes and regulations). Next, 6%would move to access better opportunities, and 6%would choose
<br /> to expand. As for why these people chose to stay, 144 responded. Of these 144, 63%cited having
<br /> roots in the area that would prevent a move, 21%could not leave the convenience and stability of
<br /> their present situation, and 20%could not afford the cost, nor the effort of a move.
<br /> Business Environment
<br /> Respondents were asked to choose among 8 different actions they could have taken in
<br /> response to the recession, and 1060 responded. More than half froze or cut wages (55%), followed
<br /> by 47%who cut back scheduled hours for employees, 41%who reduced purchases of outside
<br /> contract services, 36%who froze or cut benefits, 34%who laid off workers, 20%who increased
<br /> hours rather than hire new workers, and 10%who increased contracting instead of adding staff.
<br /> Respondents averaged picking more than two of these methods. Also, these business owners filled
<br /> in responses to other actions they have taken due to the recession. Eight percent stated they have
<br /> `' not been affected, 8% reduced expenses and overhead, 6% made substantial personal cutbacks, 3%
<br /> deferred maintenance and other capital projects, 2%adjusted their pricing (either increasing or
<br /> decreasing their prices), 2%engaged in a hiring freeze, and 2%decreased their inventory.
<br /> 935 business owners discussed who they turn to when they have questions about their
<br /> business. 63%stated using their CPAs, 57%talked to other business owners, 44%discussed the
<br /> matter with their attorney, and 31% used networks, groups, and their Chamber of Commerce.
<br /> Further of note is the 9%that used online resources (often citing using the government's websites),
<br /> 8%that used MN government departments, 8%that used banks, and 6%that used consultants.
<br /> Government Assistance
<br /> Business owners were asked to state if they received government assistance. Overall, 6%
<br /> did not respond to the question, 16%stated that they did receive assistance, and 78%stated that
<br /> they did not. Of the 1014 respondents, 46%stated that they received a SBA Loan, 14% received a
<br /> grant, 9% received JOBZ, and 6% received Energy Assistance. When calculating these percentages
<br /> throughout the whole respondent population,the results would be (8%, 2%, 2%, and 1%,
<br /> respectively). Out of 73 respondents, 29%stated that they heard about the program from their
<br /> banker, 15% heard it from their association, 8%from SBA counseling, and 8%from their own
<br /> research.
<br /> Of 740 respondents, 32%feel that loans/grants are the most important form of government
<br /> assistance. This number is followed by 28%that cited tax assessments/less taxes, 23%who want
<br /> less government in business, and 8%who want better regulations. Only 54 responded to what they
<br /> feel is least important. Overall, 41%cited incentives, 35%cited Energy Improvement, 15%grants,
<br /> and 9%subsidies.
<br />
|