FAIRFIELD COUNTY, Conn. -- Connecticut continues to see business growth and the highest number of profitable companies in nearly a decade, according to the BlumShapiro and the Connecticut Business and Industry Association (CBIA) 14th annual survey.
This year’s survey, released by BlumShapiro and the CBIA at The Connecticut Economy Conference at the Hartford Downtown Marriott, shows that 63 percent of businesses surveyed showed a profit this past year—the best this survey has seen since 2006.
“The ability of Connecticut’s businesses to rise above the state’s public policy and economic shortcomings and continue to remain profitable lends optimism to this year’s survey,” BlumShapiro West Hartford Managing Partner Joseph Kask said in a statement.
A primary area of concern is the expansion of businesses over the next five years, with 31 percent of businesses considering out-of-state options for growth.
“The overriding consensus of this year’s survey is the need for state lawmakers to engage business leaders to create a more business-friendly climate in Connecticut, by enhancing the dialogue on taxes and competiveness,” BlumShapiro partner Andrew Lattimer said at the event.
This year’s survey also found that the majority of Connecticut businesses do not have a succession plan in place, which is consistent with a new study released this past summer by BlumShapiro and Baker Tilly International.
The study, entitled "Succession Reset: Family Business Succession in the 21st Century," showed that nearly 80 percent of family-owned businesses are not prepared for when current management steps down.
Additional survey findings include:
- 48 percent of those responding say taxes are the biggest concern of businesses, and 53 percent say reducing taxes is the best way to enhance business competitiveness.
- 82 percent of those surveyed indicated they are either growing (32 percent) or holding steady (50 percent).
- 37 percent of businesses expect a sale or transfer of the company in the next 10 years, while 46 percent of businesses do not.
- 91 percent of businesses consider Connecticut’s business friendliness to be worse than in states outside of the northeast.
- 33 percent of companies surveyed export goods or services, and, among them, 10 percent attribute at least 40 percent of their sales to exports, while close to half (47 percent) say exports account for 10-39 percent of their sales revenue.
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