U.S. small businesses recorded 6 percent growth in operating income in the fourth quarter 1996, but regional performances were disproportionate, with the West pulling the nation, and the Midwest sluggish.
According to results of a small-business survey by accounting franchiser Padgett Business Services, the West posted a 22 percent rise in operating income compared with the fourth quarter 1995. In the Midwest, income rose 2.4 percent, while in the East, it remained flat. Operating income in the South advanced 5.9 percent.
Partly explaining the Midwest's marginal increase is its rise in payroll expenses. The region reported a 15.3 percent gain in the quarter, compared with last year, while the other regions reported 7.8 percent to 8.6 percent increases. Total expenses for the Midwest exceeded the national average - 6.7 percent, vs. 6.4 percent - but were lower than the expenses of the West and South.
Padgett questioned more than 3,000 business owners for the survey, titled The Engine of Our Economy, which is produced quarterly. The margin of error was 2 percent at a 95 percent confidence level. Questioning took place Dec. 31.
Web site lists HMOs
Small businesses can compare health maintenance organizations at The BuyersZone Internet site http://www.buyerszone.com
You'll find a state-by-state list of HMOs that cover small businesses. The site also lists the minimum number of employees needed for coverage and the percentage of board-certified primary-care providers in the plan.
Old reliable financing
America's fastest-growing companies are financed the same as most others, a survey by Coopers & Lybrand LLP concludes.
''The primary funding sources . . . remain the old standbys: profits and working capital, commercial bank loans, leasing, credit cards, strategic alliances, personal resources and private investors, including venture capital,'' reports the firm's newsletter, Growing Your Business.
Other findings: Funding sources are more focused and offer flexible terms; and venture capital firms remain very selective, looking for payoffs 20 to 30 times their investments.
- Compiled by Lisa Biank Fasig and from Enquirer news services
