LANSING – The Small Business Association of Michigan’s latest quarterly Small Business Barometer survey shows that 28 percent of small business owners report that their profits went up in the second quarter of 2006, up sharply from the 15 percent who reported higher profits in the first quarter.
The brighter profit picture is contributing to more aggressive hiring plans. Thirty-six percent of small business owners say they expect to hire additional workers in the next year. That?s the highest percentage since the middle of 2000.
?This could be the beginning of a real comeback for the small business economy,? said SBAM Vice President Communications Michael Rogers. ?Since 2000, more small businesses reported decreases in profits than reported increases ? the opposite of what we saw during the roaring economy of the 1990s. But now, those trend lines are close to crossing again. It really illustrates the resiliency and adaptability of small business owners in the face of economic adversity and Michigan?s tax and regulatory burden.?
Tempering the small business optimism is continuing disgruntlement about Michigan?s tax and regulatory system. Thirty-nine percent give the fairness of the tax system a negative rating ? the highest level since 1993. Ten percent are positive and 51 percent are neutral. Twenty-seven percent give a negative rating to the regulatory environment, up seven percentage points from the previous quarter. Sixteen percent are positive and 57 percent are neutral.
The percentage of small business owners surveyed giving a positive rating to the performance of the Gov. Jennifer Granholm fell to 13 percent, its lowest level in the history of the Barometer.
The quarterly Barometer survey is sponsored by SBAM with the participation and support of the Center for Urban Studies of Wayne State University. The survey was conducted by Public Policy Associates of Lansing.
