California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

Union Bank of California, N.A., has released their annual small business survey. 
The results illustrate that small business owners in the state have grown increasingly
cautious as the economic climate has become more uncertain.

California’s economy was identified as the No. 1 challenge facing small business owners
in this year’s survey. Previous surveys illustrated workers’ compensation costs as the top
issue since 2004.

The survey, found 52 percent of respondents statewide believe 2008 will be more profitable
than 2007, unfortunately this is a 15 percentage-point decline from last year. Respondents
are also showing caution with capital expenditures as the economy slows. Only 26 percent
plan to increase spending on equipment and building improvements in 2008, while the majority
(62 percent) plans to spend the same amount.

Staffing levels is another area where the majority of respondents plan to keep expenses in check.
Seventy-one percent expect to maintain existing levels in 2008. Only 23 percent plan to add
positions, a 7 percentage-point decline from 2007. In 2006, 36 percent of respondents expected
to add staff. While most small business owners are not expecting to hire new employees, they
are not planning layoffs, either. Ninety five percent of respondents identified they do not anticipate
layoffs in 2008.

In spite of the cautious outlook for 2008, respondents believe opportunities for growth continue to
be the No. 1 advantage of doing business in California (28 percent). Family ties ranked No. 2
(22 percent) and climate No. 3 (17 percent).

I am Tim Johnson and this has been the California Business Minute.

See full analysis at www.CalBizBlog.com

It's amazing, fantastic and incredible. . .
what was the question?

                                                             Bob Slobe
                                                             Businessman
                                                             Philanthropist
                                                             All Around Great Guy