EDC shares results of Business Climate Survey in Sarasota County

SARASOTA (April 28, 2010) – A survey of business owners/managers in Sarasota County showed that dissatisfaction with the overall business climate is at an all-time high, growing to 84% in 2010 from 76% in 2008, according to Kathy Baylis, president and CEO of the Economic Development Corporation of Sarasota County (EDC). The EDC commissioned the survey and presented the results today to the Sarasota County Board of County Commissioners.

“Businesses are continuing to struggle with the condition of the economy and finding more work,” Baylis said. “There is some indication that we may have seen the worst, however, as fewer respondents thought the overall business climate was worse than two years ago. The change is small, but the trend is moving in the right direction.”

The top five business climate issues identified in the 2010 survey were:

• Affordability/cost of living (e.g. housing)
• Direct costs (e.g. cost of labor, energy costs and renting space)
• Taxes (e.g. income and property taxes)
• Workforce (e.g. availability and quality)
• Financing/insurance availability (e.g. commercial property insurance)

 “The survey showed that business owners/managers don’t really distinguish between the overall economy and local business climate impacts on their businesses,” Baylis said. “This creates a challenge for us to identify those factors that we can act on locally, so we made a point of digging deeper.”

The survey also reported that 80 percent of local businesses are working to adapt to the new economic climate, by adding new products or services, reducing staff, lowering prices, closing branches, and increasing or decreasing advertising, Baylis said. Securing financing continues to be an obstacle to growth.

The survey asked questions and developed statistics to show the gap between the business climate factors that respondents think are important and how satisfied they are with those factors. Based on that information, the survey presented suggestions on ways the local business climate could be improved. Suggestions include:

• Continue narrowing the gap between “importance” and “satisfaction” in the areas of affordability/cost of living and direct  costs/taxes.
• Address regulations hindering business success like taxes, permit process, sign process, building regulations and impact  fees.
• Target industry groups and regions that have higher dissatisfaction levels and unique needs. Conduct qualitative research  to uncover the issues at a deeper level and address solutions by industry and region.
• Demonstrate local government support of business expansion by building pro-expansion awareness among businesses.
• Increase awareness of the EDC and other local government services that can help businesses.

The EDC has conducted the business climate survey every two years since 2005 to assess the issues and challenges facing business owners in Sarasota County; assess benchmarks for the economic environment now vs. two years ago; understand the importance of and satisfaction with key economic issues; and understand awareness of the EDC and use of its services.

The telephone survey of 307 business owners/managers was conducted in January 2010 drawing respondents from the Sarasota County Tax Collector’s database. The list was stratified by industry and geography. The survey has a 95% confidence interval and a margin of error of 5.57%. The survey report, prepared by Kempton Research and Planning, is available online at www.edcsarasotacounty.com.

The EDC of Sarasota County is the private, not-for-profit corporation leading the community’s economic development strategy to add high-wage jobs and diversify the local economy. The EDC provides business assistance to companies in Sarasota County and helps forge solutions to community challenges that affect quality of life. The EDC works in partnership with chambers of commerce, local governments and other organizations throughout the county and the region. For more information, visit www.edcsarasotacounty.com.

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