On October 23rd, 2014, we updated our
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Researched small businesses and the effects of the recession
Interpreted the collected data
Finalized information collected from the surveys and came up with conclusions that will be stated later
Research Planning:Small Businesses During the Recession *Research articles online that were based on small businesses and the recession *Chose relevant factors about small businesses in the recession Some articles we read were:
“Recession and Small Business”
“Why Most Small Businesses Will Beat the Recession”
“Small-business owners, hit by recession, seek remedies”
“Even in Recession, Some Small Businesses Grow”
Small Business Statistics(In General) Three quarters of small businesses put surviving the recession down to the strength of their own determination and initiative. Only 23% of respondents felt it had been easy to access external help and advice during the recession.
What are the Most Profitable Small Businesses in a Recession (in General) Dentists Accountants Lawyers Doctors Their profit margins range from 11.5% to nearly 17% net profit.
7 Recession Effectsof the Recession Cycle Consumer Spending Might Go Down. Competition Could Get Fierce. Your Expenses Will Go Up. Your Business Will Become Unpredictable. Interest Rates Might Come Down. You Could Get A Chance To Invest Outside Your Business. Your Employees Could Demand Higher Salaries.
6 Essential Small Business Recession Survival Questions What are my most profitable activities right now that are likely to remain consistent and keep producing in the current environment? Do these activities produce enough profit to warrant a business to support them? What activities are least profitable that I can no longer afford to do? What are my exact costs each month, and what can I do without? How can I subcontract and hand off all work that does not directly product a profit? How can I leverage my tangible and intangible assets to profit in different ways? From the Small Business Association by Stuart Burkow
Data Collection & Preparation
Distribution of Surveys Our Survey
Creating Questions for Our Survey The opinions we will collect are what impact the recession has had on customer spending for a specific business. The second opinion we will collect is what techniques are effective in combating the recession. The last opinion we will collect is which businesses are most likely to strive during a recession. In regards to our sampling plan, we plan on dispersing within the areas of Wilkes-Barre, Kingston, Moosic, Scranton, and West Pittston to find small and local businesses. The people who will be surveyed will be employees of these businesses who know the effect of what the recession has done. Opinions Sampling Plan
Our Survey Questions We will use a variety of surveying questions involving some fill-in, ranking answers and picking the best answer that applies. Question Format Target Audience We plan to survey small businesses in and around the town. We will survey all types of small businesses that are privately owned. We do not wish to include chain businesses into our project. We will survey all types of businesses such as restaurants, shops, cafés, flower shops, consignment shops, and grocery stores, etc.
Our Survey Questions Demographic/Target Audience The following questions are asking businesses about the following: What age group describes you? How long have you worked for this company? How long has the company been in business? Age (circle age group): 15-19 20-29 30-39 40+ How long have you worked for this company? Less than 12 months About a year More than ___(insert #) years How long has the company been in business? ___ year(s) & ___ month(s)
Behavioral The following questions are asking businesses about the following: How businesses have changed their business to attract customers over the last year. Has the business’ inventory purchasing changed in the last year? The primary business strategy used for keeping business successful. The amount sales have increased or decreased in the last year.
Opinions What impact the recession has had on customer spending for business? What techniques are effective in combating the recession? Which businesses are most likely to strive during a recession? The following questions are asking businesses about the following:
Analysis & Interpretation
Graphs & Charts
Sampling Plan Stratified Sampling Locations Small Business Around Campus Moosic West Pittston
Respondents Handed out 60 Surveys Method of Distribution 39 replies Paper
Confidence Interval What is the proportion (with 90% certainty) that owns a retail small business? Sample Proportion .33 Sample Size 39 Critical Measure 1.64 Standard error 8%
24% chance the business type is not a restaurant or retail
Decrease Customer Spending and Sales 6.48% chance that that a food type business has both decreased customer spending and decreased sales 0.922% chance that a retail type business has both decreased customer spending and decreased sales
Increase Customer Spending and Sales 0.231% chance that a food type business has both increased customer spending and increased sales 4.938% chance that a retail type business has both increased customer spending and increased sales
Average Company Age (Years)
Recession Impact of Spending Based on Age
Sales Based on Age
Recession’s Effect on Sales Sales have not decreased slightly or greatly. Sales have decreased slightly or greatly.
Recession’s Effect on Sales (Continued) Accept Null, Sales have not decreased by 50% since the recession began.
Recession Effect on Customer Spending Customers do not decrease spending slightly or greatly at small businesses Customers decrease spending slightly or greatly at small businesses
Recession Effect on Customer Spending Accept null, Customers do not decrease spending by half at small businesses during recession
Most Profitable Business Type Retail businesses are more profitable Retail businesses are not more profitable
Most Profitable Business Type (Continued) Accept null, Retail businesses are not believed by half or more than half of other businesses to be the most profitable during a recession.
Successful Recession Business Strategies
Successful Recession Business Strategies (Continued) Reject null, Increasing customer service is said by local businesses to be a more successful business strategy for small businesses than selling low priced products and services
Best Industry During Recession
Best Industry During Recession (Continued) Reject null, Small retail businesses sales have increased more than small food businesses sales during the recession.
REGRESSION ANALYSIS On the relationships between the company’s age and sales within the past year.
REGRESSION ANALYSIS (cont’d)
REGRESSION ANALYSISScatter Plot
Reporting Food businesses overall decreased in customer spending and sales--6.48% vs. 0.922% for retail Location and customer service most frequent strategies Small business sales have not significantly decreased Customer spending has not significantly decreased Findings
Reporting Retail not believed to be most profitable by other businesses Customer service better business strategy than low prices Retail sales reported significantly higher than food sales during recession Findings (continued)
Reporting Starting a new business: Start a retail business Focus on location and customer service Not necessarily unsuccessful during recession (sales and spending not decreased significantly) Improve current business: Make customer service a high priority Not low prices Meaning of Findings
Reporting Test the survey questions before handing out Ask more directly related questions (employee age irrelevant) Pass out more surveys to closer represent population Include service businesses more in sampling Improving Study
Small Business Survival Suggestions, Strategies, Tips, and Help
Coping in a RecessionCalm Recession Fears: 5 Steps to Success 1. Hold onto Your Best Clients 2. Keep Control Over Your Inventory Do your best to take care of their needs Keep in constant touch so that they remember your business when they need something Special discounts or promotions Watch over and monitor inventory and rotate as much as you can Place orders accordingly Saving money
Calm Recession Fears: 5 Steps to Success (cont’d) Letting go of inefficient employees Raise stronger employee salaries Aggressive in marketing and advertising campaigns Increase market presence 3. Hold onto Your Best Employees 4. Increase Your Market Presence
Calm Recession Fears: 5 Steps to Success (cont’d) Get rid of credit cards if used to buy luxurious items Browse other businesses when finding price and quality Split large expenses to smaller ones 5. Keep Control Over Expenses Follow these 5 Steps to Success to make your small business emerge leaner and economically fitter.
Since the recession began, sales have not decreased within small businesses.
Customer spending has not decreased by half within small businesses.
Retail businesses are not believed to be the most profitable during a recession.
An increase in customer service is a successful strategy rather than selling low priced goods or services.
Within small business, retail stores have increase sales compared to food venues.
There is no connection between how many years a company has been active and its past year's sales.
Works Cited 7 Recession Effects of the Recession Cycle http://www.morebusiness.com/7-effects-economic-cycle 8 Ways to Recession Proof Your Business Opportunities http://www.morebusiness.com/8-ways-recession-proof-business 10 Causes of Economic Recession http://www.morebusiness.com/10-signs-recession Business Week: Why Most Small Businesses Will Beat the Recession http://www.businessweek.com/smallbiz/content/jan2009/sb2009015_212410.htm Coping in a Recession: Calm Recession Fears: 5 Steps to Success http://www.morebusiness.com/navigate-recession-headwind CNN: Small-Business Owners, Hit by Recession Seek Remedies http://www.cnn.com/2009/US/12/06/small.business.recession
Works Cited (cont’d) National Business Association: The 6 Essential Small Business Recession Survival Question http://www.nationalbusiness.org/nbaweb/Newsletter2009/2637.htm NY Times: Some Small Businesses Grown, Even in a Recession http://www.nytimes.com/2009/11/25/business/smallbusiness/25growth.html One of 3 Small Businesses Unaffected by Recession http://www.bytestart.co.uk/content/news/1_12/small-business-recession-effect.shtml Preparing for a Recession: How to Survive a Recession http://www.morebusiness.com/survive-economic-recession Recession and Small Business http://www.smallbusinessnotes.com/aboutsb/recession.html Tips for Small Businesses to Survive Recession http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/03/22/BUSQVMKH3.DTL