SMALL BUSINESS : County Companies Fail to Fare Well in Survey of Southland Enterprises

Orange County made a rather weak showing in a recent survey of Southern California businesses. For starters, companies here rated lowest in their enthusiasm for staying put in California. Loyalty was greatest in Los Angeles, where 83% of respondents said they have no plans to move--compared to 76% in San Diego and 72% in Orange County.

Other statistics: Only 51% of the Orange County companies reported making a profit in their 1992 fiscal year, compared to 69% in Los Angeles and 67% in San Diego.

The Los Angeles office of the Arthur Andersen accounting firm interviewed 277 companies, including 87 in Orange County, for the survey.

Don Dahl, a partner in Arthur Andersen’s Irvine office, said Orange County fared the worst because a disproportionate number of manufacturing and real estate companies responded to the firm’s faxed questionnaires.

“Those are two industries that have been extremely hard hit by the recession,” Dahl said.

Furthermore, many entrepreneurs came here “seeking a certain lifestyle” that has begun to elude them, Dahl said, and therefore are more likely to consider relocating.

“A lot of people based their businesses in Orange County to escape the congestion and crime found in other areas,” he said. “But over the past few years, Orange County has started to feel more like a big city.”

On a brighter note, 36% of the Orange County companies expect to add employees to their payroll this year. Twenty-eight percent of the Los Angeles respondents and 40% of San Diego companies said they would beef up their staffs.

“That’s a good sign of optimism,” Dahl said. “Southern California is starting to see a glimmer of hope.”