Are San Diego Small Business Owners Truly Pessimistic about 2016?

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A recent study released by Union Bank shows that San Diego small business owners are more concerned with the local economy in this election year.  This is the result of a 23% increase in this year’s survey over last year on the question of whether the national economy is headed in the right direction.  68% of survey respondents responded negatively to this question in 2016, compared to 45% in 2015.  The survey reported that 20% more small business owners felt the California and local economies were headed in the wrong direction than last year.  On a positive note, it is interesting that 87% of the San Diego small business owners said their own businesses were headed in the right direction.

Headlines about pessimism garner interest in news stories, but the internals of the survey may actually paint a different picture.  The first qualifier provided is that the same precipitous drop occurred in 2012 – the last presidential election year.  87% thought their businesses were headed in the right direction.  31% said local economic conditions had remained about the same, and 29% noted improvement.  In other words, 60% of the survey respondents were not seeing worse local conditions in 2016.  The survey noted what we’ve witnessed from our own business client base:

San Diego small business owners “are encouraged about the future of their businesses and cautiously expanding and increasing staffing.”  It is prudent to exercise a bit of caution in an election year.  

When you factor in the substantial local political issues surrounding citizens initiatives for a new stadium and downtown convention center, with developments on the national scene such as the passing of a conservative Supreme Court Justice and a presidential election cycle, there are a lot of developments in play.

The Watkins Firm works with our clients to tighten areas of risk, and to help position businesses for potential growth opportunities.  We review our San Diego small business owners business contracts and employment agreements, handbooks and policies to ensure that our clients are positioned for successful business outcomes, while reducing the risk of disputes or litigation.  We assist with the negotiations and due diligence associated with a merger or acquisition, as clients look for opportunities to expand markets and the reach of their business.  We keep our clients abreast of the significant employment law changes in 2016, and the changes employers must make to remain in compliance with ADA and the California Fair Pay Act, while avoiding unpaid overtime disputes.

Our clients are prudently bullish about 2016, and San Diego small business owners should continue to look for ways to tighten their contracts, processes and policies while taking the steps to incrementally grow their business.  If you would like to speak with us for a free and substantive consultation we invite you to call 858-535-1511.  Our experienced team can conduct a thorough review of your existing contracts and documents, and provide the sound advice and counsel that will help your business to continue to grow and thrive.