SBA Accepting Proposals For Women’s
Center Projects
Small-business optimism decreased slightly last month. But signs indicate the economy is very solid for small businesses, with a few signs of a “soft landing” ahead.
So said the Small Business Economic Trends report from the Education Foundation of the Washington, D.C.-based advocacy group the National Federation of Independent Businesses.
The small business report showed that the Small Business Optimism Index, a 10-component measure of the economic status, plans and expectations of America’s small firms, fell from 101.9 in August to 101.1 in September.
Of the 10 index components, three posted gains while seven lost ground. However, the declines in the components were modest, dropping the index by less than a point, said William Dunkelberg, chief economist at the NFIB Education Foundation.
Hiring plans lost two points, falling to 18 percent of all firms , not including those planning reductions. That was four points shy of the record, Dunkelberg said.
About 55 percent of all firms reported difficulty either filling jobs, or finding qualified labor. About one-third of the companies surveyed reported increasing labor compensation, but only 7 percent cited labor costs as their main business concern, he said.
Also, 13 percent of all firms reported raising average selling prices, up three points this month, Dunkelberg said.
This indicator shows inflation rising much faster than in the past two years. In 1999, 5 percent of firms reported raising prices; in 1998 the figure was 2 percent.
“At least the frequency of price hikes has not risen past the June mark of 19 percent , good news for the inflation-fighters,” Dunkelberg said.
Dunkelberg said labor-related issues continue to vex small business owners, primarily the scarcity of qualified skilled and unskilled workers.
The rate at which sales increased among small businesses remained constant from August to September. About a third reported higher sales in the last three months, while 21 percent reported lower sales. This is the lowest reading of the sales indicator this year.
“If anything can slow the economy, a reduction in consumer spending and an increase in the savings rate would have to be at the top of the list,” Dunkelberg said.
Dunkelberg also noted a disquieting trend in small business plans for expansion. These capital spending plans continued to display substantial volatility, a pattern similar to that which preceded the recessions in 1980-82 and 1990-91, he said.
Earnings, meanwhile, improved slightly, gaining one point. Despite the one-point gain, earnings are at their third-lowest level of the year, Dunkelberg said.
Extrapolating from current trends, Dunkelberg predicted that the economy could experience a “soft landing” in the first or second quarter of 2001.
“The second half of 2000 will be stronger than most economists have predicted. Then, by April 15, the impact of the stock market on paper wealth and on actual capital gains and losses will invade reality and consumer spending will slow. The economy will continue to grow, but at a substantially slower rate,” he said.
The NFIB Education Foundation has issued its Small Business Economic Trends reports for more than a quarter-century. The latest report is based on a September survey of 561 small business owners from throughout the nation.
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You Go, Girl: The Office of Women’s Business Ownership, part of the U.S. Small Business Administration, announced Oct. 19 it is accepting applications and proposals for Women’s Business Center projects.
The projects will provide business training, counseling and other technical assistance services to women business owners and women who want to start businesses, said Sally Murrell, spokeswoman for the Office of Women’s Business Ownership.
The application deadline is 4 p.m. Eastern time, Dec. 7, she said.
For application materials, visit the SBA Web site at (www.sba.gov). For more information, call Sally Murrell at (202) 205-6673 or Mina Bookhard, Office of Procurement and Grants Management, at (202) 205-7080.
Bucks For Education: Chula Vista Center handed out more than $10,000 in cash awards to six area schools participating in the shopping mall’s “Cash Back for Schools” promotion.
The event, jointly sponsored by the mall and California Bank & Trust, awarded $10,750 to area schools, said Susan Lipp, marketing manager for Chula Vista Center.
The Cash Back for Schools promotion ran from Aug. 28 to Oct. 15. Shoppers were asked to save their Chula Vista Center receipts from purchases made during this time and the schools with the highest average point per student won the prizes, Lipp said.
First place went to Sacred Heart Parish School, which collected $4,000. Chula Vista Hills School came in second, with $3,000, while Hilltop Middle School won $2,000. St. Rose of Lima School won $1,000, while Chula Vista High School came in fifth place with $500, she said.
A drawing was held of a $250 prize for each of the remaining schools, and Harborside Elementary School in Chula Vista won $250, Lipp said.
Send small business and retail news to Lee Zion at lzion@sdbj.com.
