NFIB survey: Georgia small business owners still bullish on state

Business conditions in Georgia rank among the nation's best, but
optimism from small-business owners faded this quarter, according to
the Georgia Small-Business Conditions report published today by the
National Federation of Independent Business/Georgia.

A net 46 percent (positive percent minus negative percent) of
respondents in Georgia said business conditions are "good," lower than
September's net 52 percent. A net 14 percent of respondents said
business conditions are "improving," down from a net 25 percent in
September. A net 44 percent said sales are "good," down from a net 52
percent in September. And a net 28 percent said profits are "good,"
down from a net 35 percent last quarter.

In addition, 72 percent of respondents are "satisfied" with the
direction Georgia is headed, while 22 percent said they are
"dissatisfied."

"Business conditions in Georgia remain very good, but there are signs
momentum is shifting in a post-Katrina environment," said Melody
Harrison, NFIB/Georgia state director. "Georgia continues to compare
favorably to peer states in the Southeast, but many entrepreneurs are
feeling pinched in the short term by rising energy prices and pressure
on sales and profits."

Average prices small businesses paid for goods and services rose, as
59 percent reported increases in the most recent quarter, up from 56
percent in September. Sixty-seven percent said prospects over the next
few months look "good," down from 71 percent in September.

Asked to list the single most important problem facing their business
today, 15 percent said inflation and rising prices, 14 percent said
big-business competition, 13 percent said taxes, another 13 percent
said employee quality or costs, and 11 percent said insurance.

The NFIB Research Foundation provides policy-makers, media, educators,
small-business owners and other interested parties empirically based
information on small business and small-business owners. The
Foundation is affiliated with the Washington, D.C.-based National
Federation of Independent Business, the nation's largest small- and
independent-business advocacy organization.

The Georgia Small-Business Conditions report is compiled through a
random telephone survey of businesses that employ between one and 250
people in a for-profit business. The MRCGroup of Las Vegas conducts
the survey for the NFIB Research Foundation.

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