More than 80 percent of Minnesota employers are cautiously optimistic about the state?s economic future, but they are not confident the state has fully emerged from the lingering four-year economic slump.?
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These findings highlighted the ninth annual Minnesota Business Barometer Survey of owners and managers of 350 businesses with at least five employees. It was co-sponsored by the 2,400-member Minnesota Chamber of Commerce and Himle Rapp and Company, a public affairs firm headquartered in Minneapolis.
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This year, questions concerning the economy continued to provide mixed results. For the first time in several years, the survey showed that optimism is slowly returning among businesses. Thirty-one percent said the economy is getting better compared with 13 percent a year ago.
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However, only 21 percent of the respondents reported profits were better than a year ago, while 25 percent reported lower profits than in the previous year. In addition, an equal number of employers reported reducing their number of employees as reported an increase.
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The Business Barometer found 84 percent of business owners and managers stated they were very or somewhat optimistic about Minnesota?s economic future over the next decade.?
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?While business owners have a positive long-term outlook, the survey identifies real barriers to job creation,? Minnesota Chamber President David Olson said. ?To cash in on this long-term optimism, the governor and Legislature must take timely action to address these concerns if they want companies to stay and invest in Minnesota now.?
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While 55 percent of survey respondents rated Minnesota as having a good business climate compared with other states, they also identified five key barriers that must be addressed to strengthen the business environment:
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<</strong> Taxes remain a key obstacle to job creation, identified by seven out of 10 employers as one of the two most important barriers in Minnesota. The tax burden continues to grow compared with five years ago.
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<</strong> The stability and predictability of government regulations are important factors in business decisions to invest in Minnesota operations.
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<</strong> Costs continue to rise for employers who provide health insurance. Businesses are not yet looking to eliminate the employee benefit but are seeking ways to manage this cost.
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<</strong> Half the employers surveyed reported there are enough skilled workers available in their industry. When gaps arise, employers identify training rather than a shortage of workers as the primary workforce barrier. ?
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<</strong> Electricity costs continue to be a concern, and reliability is beginning to surface as a larger factor for some business owners and managers.
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?Business Barometer respondents identified four primary goals for any tax reform: Simplify; tax voluntary behavior; make revenues predictable; tax activity and not income.
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The survey was conducted in July and August and has a margin of error of 5.3 percent.
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