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Thursday, Mar 28, 2024

Pessimism Not the Only Business Story

Giovis Valley area small businesses and entrepreneurs are feeling pretty pessimistic about the economy. Unfortunately, they’re virtually hamstrung to improve it. Banks are more stingy than ever and have their own problems to deal with. At the ground level, there are Valley business bankers who would love nothing more than to approve small business loans to fund expansion projects and job creation. But they’re on lock-down as corporate requires them to conduct risk assessments that even some of the most financially sound companies can’t pass. Most small business owners can’t pull equity out of their homes. Their homes have lost considerable value. And while there are funds available through the Valley Economic Development Center and other U.S. Small Business Administration-approved lenders, there is only so much money to go around. Meanwhile, many companies are simply trying to hang on; layoffs are a means to survive. On Page One, we delve into the local small business sentiment and explore the factors hindering economic recovery efforts — stagnant job growth, reflective in the county’s 12.5 percent unemployment rate and a dismal housing market. According to the Los Angeles County Business Federation, about 80 percent of small business owners in Los Angeles County expected to either freeze hiring or lay off workers in the coming six months. BizFed, which comprises of 92 area chambers of commerce, business improvement districts, ethnic business groups and independent companies, surveyed 326 area businesses during the month of September and only 21 percent said they planned to expand hiring in the coming months. That’s down significantly from the 33 percent who said they planned to increase their workforce earlier this year. The survey also found that 70 percent of business owners and managers believed the outlook for the economy was flat or worse. We hear from business owners such as Pam Berg, owner of MMP Printing and Digital Graphics of Panorama City, whose business has been cut in half, and Geno De Vandry, president of Deking Screw Products Inc., who had to reduce his workforce when the recession zapped the majority of his business; despite a recent rise in revenues, he’s still not confident enough to reinvest in the company and hire back employees. I attended the Valley Industry and Commerce Association’s 23rd Annual Business Forecast Conference, held Oct. 28 at the Universal Hilton. I moderated a panel discussion on the real estate market, called “Is Anybody Buying it?” and heard other business leaders and local economists talk about the state of the economy. While the mood was glum, it wasn’t all doom and gloom— there are bright spots in the Valley’s economy, such as the health care industry. Many high-tech companies are flourishing and employ high-paying workers. Still, you’re almost considered a fool today if you have a sunny, optimistic attitude. That said there are plenty of good stories out there about companies that are growing and hiring. Here at the Business Journal, we think it’s crucial to share these stories — celebrate achievement and keep alive the hope for a better tomorrow. In each and every issue we feature an entrepreneur in the greater Valley region. The criteria are pretty simple: the business must generate at least $1 million in revenue and be willing to share revenue and employment figures that chart growth over a two-year period. This issue, we feature Carrie Nebens, president of Equis Staffing (see page 12). So far this year, she has already posted $4.6 million in revenue, up 70 percent from all of last year. Last month, we featured Earthly Body Inc., a Chatsworth beauty products manufacturer. The company’s revenues grew 60 percent to $8 million last year, and this year, CEO and President Kevin Wachs expects to hit $10 million. There also was 3ality Technica, a Burbank 3D software and camera rig company with 2010 revenues of $21.4 million. The company now has 100 employees, nearly double what it had a year ago. We love writing these stories. Want to help us spread more good news? Write in. Promote your growth story or tell us about someone you know. And don’t miss our next issue, devoted to the Valley’s fastest growing companies. Business Journal Editor Jaclyn Giovis can be reached at (818) 316-3126 or by e-mail at [email protected]

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