Small Business Survey : More Good Times Expected Here

Orange County small-business owners were more prosperous than the national average for the last year, and they expect the good times to continue, according to Arthur Andersen & Co.’s Third Annual Small Business Survey.

Half of the approximately 500 chief executives of county-based companies who participated in the survey said they expect sales increases of more than 10% in the next year. Nationwide, 35% of the more than 21,000 exectives surveyed predicted such increases.

Fifty-one percent of county respondents said their companies are more profitable than last year, compared to 45% nationwide.

Reports of the death of manufacturing in Orange County are premature if the survey is accurate. Of the county companies surveyed, 38% were manufacturers, compared to 31% nationally. Service companies accounted for 33% of those surveyed here.

SURVEY RESULTS

Change from Forecast for Previous Year Next Year Orange Co. National Orange Co. National SALES Increase greater than 10% 51% 42% 50% 35% Increase 5% to 10% 20% 20% 24% 27% Increase up to 5% 5% 9% 9% 13% Stay about the same 14% 16% 14% 18% Decrease 10% 13% 3% 7% EMPLOYEE COMPENSATION Increase greater than 10% 22% 14% 18% 10% Increase 5% to 10% 44% 39% 42% 38% Increase up to 5% 25% 32% 31% 36% Stay about the same 6% 13% 8% 15% Decrease 3% 2% 1% 1% NUMBER OF EMPLOYEES Increase greater than 10% 33% 21% 24% 15% Increase 5% to 10% 12% 13% 19% 15% Increase up to 5% 12% 14% 18% 18% Stay about the same 30% 39% 32% 44% Decrease 13% 13% 7% 8%

Source: 1988 Arthur Andersen & Co. Small Business Survey TYPE OF BUSINESS

Orange Co. National Manufacturing 38% 31% Service 33% 26% Distribution 15% 20% Retail 8% 14% Other 6% 9%

Source: 1988 Arthur Anderson & Co. Small Business Survey

PROFITABILITY

Compared to previous year Less profitable National: 25% Orange Co.: 21% About the same National: 30% Orange Co.: 28% More profitable National: 45% Orange Co.: 51%

Source: 1988 Arthur Andersen & Co. Small Business Survey