A report by the College of Business Administration at Cal State San Marcos suggests that local businessowners are starting to have more confidence in the economy, an important indicator that many experts say can help forecast economic growth.
The Business Confidence Report surveyed business executives from 200 companies from North County and San Diego about their economic outlook for 2012 as compared with the previous year.
Nearly 60 percent of business leaders surveyed said they have a positive outlook for their industry in 2012, and 28 percent predict that the economic performance will stay the same as 2011.
The report suggests that this rosy collective outlook is the result of projections for employment, profit and revenue. One-third of the participants said they plan to hire more workers in 2012, while two-thirds predict increased revenue and 55 percent expect more profits.
Jim Harmerly, director of business community relations for the College of Business Administration, said the outlook of business leaders is important, as it could be a predictor of economic trends.
He explained that a southern California study has shown that executives trust the opinions of their industry peers and overwhelmingly turn to them to make sense of the economy, more so than the media, politicians or business advisors. Those business to business exchanges can then influence an owner's decision. Confidence, or the lack thereof, affects how business owners operate and invest in their business.
"Despite what media, Wall Street or Capitol Hill says about the state of the economy, business owners are generally optimistic, which is significant since uncertainty can affect critical business decisions," Harmerly said.
However, the report also states that business growth could be hampered by external factors. The respondents cited governmental regulations and the availability of credit as the largest threats to the growth and properity of their companies.
Robert Brown, professor of economics at Cal State San Marcos, said the report offers a "reliable gauge of business confidence and the general economic outlook in our region," something he said was not previously available.
"Local economic activity is a key component in planning for businesses, yet North San Diego County previously lacked a source for this information," Brown said. "The report fills this important role,"
Organizers of the report say they will survey more than 1,000 businesses for the 2013 forecast report, which will be available late this year and published in 2013.
Results for a similar report sponsored by the California Chamber of Commerce that surveyed 699 business executives reached similar conclusions, although that report also found that business owners are concerned that the state is "heading in the wrong track."
The results of the 2012 Business Climate Study state that for their own businesses, More than two-fifths of the respondent said their own business outlook will be getting better next year, and 45 percent said it will stay the same. Only 14 percent said it would get worse.
In the state survey, released by the e California Foundation for Commerce and Education, 31 percent of businesses said they plan on adding employees next year, and improvement from 27 percent the previous year.
In the statereport, business owners said it's getting harder to do business in the state, with the top issues being "too much government regulation," high state and local taxes and the state budget deficit.
The Business Confidence Report surveyed business executives from 200 companies from North County and San Diego about their economic outlook for 2012 as compared with the previous year.
Nearly 60 percent of business leaders surveyed said they have a positive outlook for their industry in 2012, and 28 percent predict that the economic performance will stay the same as 2011.
The report suggests that this rosy collective outlook is the result of projections for employment, profit and revenue. One-third of the participants said they plan to hire more workers in 2012, while two-thirds predict increased revenue and 55 percent expect more profits.
Jim Harmerly, director of business community relations for the College of Business Administration, said the outlook of business leaders is important, as it could be a predictor of economic trends.
He explained that a southern California study has shown that executives trust the opinions of their industry peers and overwhelmingly turn to them to make sense of the economy, more so than the media, politicians or business advisors. Those business to business exchanges can then influence an owner's decision. Confidence, or the lack thereof, affects how business owners operate and invest in their business.
"Despite what media, Wall Street or Capitol Hill says about the state of the economy, business owners are generally optimistic, which is significant since uncertainty can affect critical business decisions," Harmerly said.
However, the report also states that business growth could be hampered by external factors. The respondents cited governmental regulations and the availability of credit as the largest threats to the growth and properity of their companies.
Robert Brown, professor of economics at Cal State San Marcos, said the report offers a "reliable gauge of business confidence and the general economic outlook in our region," something he said was not previously available.
"Local economic activity is a key component in planning for businesses, yet North San Diego County previously lacked a source for this information," Brown said. "The report fills this important role,"
Organizers of the report say they will survey more than 1,000 businesses for the 2013 forecast report, which will be available late this year and published in 2013.
Results for a similar report sponsored by the California Chamber of Commerce that surveyed 699 business executives reached similar conclusions, although that report also found that business owners are concerned that the state is "heading in the wrong track."
The results of the 2012 Business Climate Study state that for their own businesses, More than two-fifths of the respondent said their own business outlook will be getting better next year, and 45 percent said it will stay the same. Only 14 percent said it would get worse.
In the state survey, released by the e California Foundation for Commerce and Education, 31 percent of businesses said they plan on adding employees next year, and improvement from 27 percent the previous year.
In the statereport, business owners said it's getting harder to do business in the state, with the top issues being "too much government regulation," high state and local taxes and the state budget deficit.