The document summarizes research conducted on the effects of the recession on small businesses. Surveys were distributed to small businesses in various locations to collect data on the recession's impacts and effective strategies for small businesses. The data was analyzed using various statistical techniques and showed that small business sales and customer spending have not significantly decreased during the recession. Retail businesses were not found to be the most profitable. Increasing customer service was identified as a more successful business strategy than lowering prices. The study provided recommendations for small businesses to focus on customer service and not assume the recession will necessarily hurt their business.

1. John Burke, Lorelay Corona, Rachel Holfelder, Julia Salem, Angela Van Strander, & Matt VitalBA 319: Final PresentationSmall Business During the Recession

2. OverviewThe Dilemma/Issue at Hand

3. Background Info

4. Research Planning

5. Prevention, Survival Tips, etc.

6. Data Collection & Preparation

7. Surveys

8. Analysis & Interpretation

9. Confidence Intervals

10. Graphs & Charts

11. Hypothesis Tests

12. Regression

13. Reporting

14. SuggestionsFrom Santa...

15. The Dilemma/Issue at Hand(Background Info)Researched small businesses and the effects of the recession

16. Distribute surveys

17. Interpreted the collected data

18. Finalized information collected from the surveys and came up with conclusions that will be stated laterResearch 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 recessionSome articles we read were:“Recession and Small Business”

19. “Why Most Small Businesses Will Beat the Recession”

20. “Small-business owners, hit by recession, seek remedies”

21. “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.

22. What are the Most Profitable Small Businesses in a Recession (in General)DentistsAccountantsLawyersDoctorsTheir profit margins range from 11.5% to nearly 17% net profit.

23. 7 Recession Effectsof the Recession CycleConsumer 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.

24. 6 Essential Small Business Recession Survival QuestionsWhat 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

25. Data Collection & Preparation

26. Distribution of SurveysOur Survey

27. Creating Questions for Our SurveyThe 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.OpinionsSampling Plan

28. Our Survey QuestionsWe will use a variety of surveying questions involving some fill-in, ranking answers and picking the best answer that applies.Question FormatTarget AudienceWe 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.

29. Our Survey QuestionsDemographic/Target AudienceThe 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 monthsAbout a yearMore than ___(insert #) yearsHow long has the company been in business?___ year(s) & ___ month(s)

30. BehavioralThe 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.

31. BehavioralQuestions

32. OpinionsWhat 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:

33. Opinion Questions

34. Analysis & InterpretationConfidence Intervals

35. Graphs & Charts

36. Hypothesis Tests

37. RegressionSampling PlanStratified SamplingLocationsSmall BusinessAround CampusMoosicWest Pittston

38. Respondents Handed out 60 SurveysMethod of Distribution39 repliesPaper

39. Confidence IntervalWhat is the proportion (with 90% certainty) that owns a retail small business?Sample Proportion .33 Sample Size 39Critical Measure 1.64 Standard error 8%

40. Confidence Interval Cont…Upper Limit 46%Lower Limit 21%

41. Types of Businesses34% chance the business type is retail

42. 42% chance the business type is restaurant

43. 24% chance the business type is not a restaurant or retail Decrease Customer Spending and Sales6.48% chance that that a food type business has both decreased customer spending and decreased sales0.922% chance that a retail type business has both decreased customer spending and decreased sales

44. Increase Customer Spending and Sales0.231% chance that a food type business has both increased customer spending and increased sales4.938% chance that a retail type business has both increased customer spending and increased sales

45. Average Company Age (Years)

46. Recession Impact of Spending Based on Age

47. Sales Based on Age

49. Recession’s Effect on SalesSales have not decreased slightly or greatly.Sales have decreased slightly or greatly.

50. Recession’s Effect on Sales (Continued)Accept Null, Sales have not decreased by 50% since the recession began.

51. Recession Effect on Customer SpendingCustomers do not decrease spending slightly or greatly at small businesses Customers decrease spending slightly or greatly at small businesses

52. Recession Effect on Customer SpendingAccept null, Customers do not decrease spending by half at small businesses during recession

53. Most Profitable Business TypeRetail businesses are more profitableRetail businesses are not more profitable

54. 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.