Los Angeles is often snubbed on lists of the country’s best places to do business. But small-business owners here are more optimistic about their potential for growth and the economy than even in perennially high-ranking cities like Atlanta.
Hundreds of local small-firm owners gathered at a conference at Dodger Stadium last week to discuss their financial concerns. Results of a survey conducted at the event indicate that they are far more optimistic than those in other cities about the short- and long-term economic outlook.
Angelenos projected higher revenue growth than business owners in other cities, as well.
Why the overwhelming optimism? “Maybe it’s the air,” joked Jeff Kiesel, president of General Electric Co.’s Small Business Solutions, which sponsored the event. “Businesses are starting up all over the place. What used to be a field is now an office park. There’s just overall strength, and entrepreneurial spirit is just a natural for this booming economy.”
GE Small Business Solutions provides financial services to businesses with less than $20 million in annual revenues. Founded early this year, the unit set off on a road tour of various U.S. cities to survey small-business owners about their concerns and financial assistance needs (as well as to tout the company’s services).
Los Angeles was the sixth stop on the tour, after Chicago, Dallas, Atlanta, Boston, and San Francisco. Yet to come are New York, Cleveland, Seattle and Phoenix.
Atlanta’s small-business owners expect to see revenue growth of 25 percent this year; L.A. business owners projected growth of greater than 29 percent. Average projected growth for the other cities was 20 percent.
As for confidence in the economy over the next year, 60 percent of Angelenos surveyed are very confident, compared to 55 percent of Atlanta’s respondents, Kiesel said.
The top three concerns of local small-business owners were all tied to success and growth: managing cash flow to finance growth, finding and keeping good employees, and using e-business opportunities and technology effectively.
Business owners in other cities were more concerned about federal and state regulations and the cost of insurance and health care.
To some local small-business professionals, the results are not surprising.
“With such a diverse population in L.A., there’s a fortune of opportunities,” said Anthony Raissen, founder of BreathAsure Inc.
Others agreed that L.A.’s diversity strengthens its economy.
“People understand that there’s all kinds of little niches when you’re in an area like Los Angeles,” said Jack Kyser, chief economist at the L.A. County Economic Development Corp. “When there are industries popping up here and there, people say, ‘There is opportunity; I just have to keep my eyes and ears open and I will discover my own lucrative niche.'”
At last week’s meeting, not even the recent roller-coaster conditions on Wall Street could dampen spirits. After all, many small-business owners rely on their own efforts to build their fortunes, rather than on investing in high-risk IPOs.
“Those I spoke with said, ‘It’s about time (the market corrected),'” Kiesel said. “‘People (at public companies) who make money should be rewarded (on Wall Street). Those who don’t, it’s time for them to come down to earth.'”
