HomeMy WebLinkAbout1998 05-12 CC ADJ AGENDA PKTAGENDA OF AN ADJOURNED REGULAR MEETING
NATIONAL CITY CITY COUNCIL
LARGE CONFERENCE ROOM
CIVIC CENTER
1243 NATIONAL CITY, CA
TUESDAY, MAY 12, 1998 — 3:00 P.M.
OPEN TO THE PUBLIC
ROLL CALL
1. Business Climate Survey Workshop
2. National City Higher Education Center Workshop
PUBLIC ORAL COMMUNICATIONS (Five -Minute Time Limit)
NOTE: Pursuant to State Law, items requiring Council action must be
brought back on a subsequent Council agenda unless they are of a
demonstrated emergency or urgent nature.
ADJOURNMENT
Next Regular City Council Meeting — May 12, 1998 — 6:00 p.m.
Council Chambers, Civic Center.
TAPE RECORDINGS OF EACH CITY COUNCIL MEETING ARE
AVAILABLE FOR SALE AND TO LISTEN TO
IN THE CITY CLERK'S OFFICE
City Council of the City of National City
WORKSHOP - ITEMNO. 1
TO: Chairman and Board Members
FROM: Paul Desrochers, Executive Director
SUBJECT: BUSINESS CLIMATE SURVEY
Purpose:
Discuss Business Climate Survey with members of the National School District Board,
Chamber of Commerce and the Community Development Commission.
An outcome of the Workshop discussion may include:
1. Implementation of the findings (P. 38);
2. Identification of the roles of each entity; and
3. Establishing a sub -committee to develop a public information strategy.
Background:
Mr. Rick Simms, Owner of Human Systems Consulting, conducted the survey and is
prepared to provide a summary of the findings. Exhibit "A" is a copy of the purpose and
background.
At the April 7, 1998 CDC Meeting the Business Climate Survey was distributed. The
direction at the time was to conduct a Workshop among the participants of the study.
A copy of the Survey is provided. The focus of the workshop will be to see how the
needs, as found in the survey, can be best addressed.
Topics to be discussed include:
• The need to enhance the City's image and "development" of a specific strategy to
highlight the "good" aspects of National City.
• Making Welfare Reform work.
• Job training and other educational opportunities for employees and businesses.
• Improving communication among the city schools and chamber for the benefit of the
entire community.
• Improving the Small Business Climate within the City.
1997 National City Business Climate Survey
Introduction
Background
The National City Collaborative contracted with Human Systems Consulting, Inc.
to conduct a business climate study with National City business owners
regarding the climate for doing business in National City. The study was carried
out during the months of October, November and December of 1997. This study
was part of a more comprehensive project undertaken by the National City
Collaborative to develop and support the growth of National City to create a
more livable community. It was co -sponsored by the National City
Collaborative, the National City Community Development Commission and the
National City Chamber of Commerce.
Purpose
The general purpose of The National City Business Climate Study is to provide
the National City Collaborative with National City business owners' feedback
regarding their perceptions of National City's climate for doing business. The
focus of this study is to obtain information from National City business owners
about themselves, their businesses, and the City's business economy. The
information will be used to plan and develop a technical assistance and
economic support system to insure the long-term growth and viability of National
City business community.
Specific objectives of this study are outlined below.
• To acquire feedback from business owners on their perceptions of the
National City business climate;
• To obtain information about small business owners and their business
operations;
• To identify the types of technical assistance and financial resources they
need;
• To learn how business owners see their role in welfare reform ;
• To determine whether business owners are willing to hire former welfare
recipients;
• To evaluate banking/financial service for businesses in National City;
• To gain insight on employee hiring and training needs of National City
businesses;
Human Systems Consulting February 1998
4
Exhibit
"An
1997 National City Business Climate Survey
• To learn how business owners perceive the effectiveness of National City
schools in preparing students for work;
• To obtain a rating on how business owners rate the City's effort to
establish and maintain favorable business climate; and
• To ascertain the attitudes of National City business owners toward
employing National City residents.
Methodology
Sample
The target population for this study was owners of businesses that were located
and/or operated within National City. Strict eligibility requirements were
established for participants to insure that the study sample actually represented
a cross-section of National City business owners. Eligibility was limited to
business owners who owned and operated businesses located in National City
that held, at the time of the study, a valid National City business license. The
sample population was generated by using the list of current National City
business license holders as defined by zip code.
Business location eligibility for study participation was defined from two zip
codes. The zip codes were 91950 and 91951. The license eligibility criterion
was met by using the "active list" of valid business license holders provided by
National City administration officials. There were 1980 business owners who
qualified and subsequently were included in the population sample.
Data Collection
Data and information for the study was collected in two manners: by survey
instrument and through the use of focus groups. A total of 1980 business
owners who met study eligibility criteria were mailed questionnaires on October
22,1997.
Human Systems Consulting February 1998
5
City Council of the City of National City
WORKSHOP
ITEM NO. 2
TO: Mayor and Members of the City Council
FROM: Pau] Desrochers, CDC Executive Director
SUBJECT: NATIONAL CITY HIGHER EDUCATION CENTER
Purpose:
Create a working relationship and commitment among the participants relative to the
establishment of the National City Higher Education Center.
Background:
Southwestern Community College District and San Diego State university, Local State
Legislators and the City Council are interested in locating a Center for Higher Education within
the City.
Topics to be discussed:
• Why establish a Higher Education Center in National City?
• How will the community benefit?
• What is the role of the Community College District, SDSU and the City?
• What kind of support is needed from the National and Sweetwater School District, and what
role, if any, can they play?
• What is the potential financial commitment for each entity and the State?
• What about a temporary location? What issues need to be addressed?
• Where is the best permanent location? Should a feasibility study and a site analysis be
undertaken to determine to optimal site?
• In order to keep the process moving; establish a working committee composed of
representatives from each entity.
1997 National City Business Climate Survey
Executive Summary
Human Systems Consulting, Inc. was retained by the National City Collaborative
to conduct a business climate study to obtain information from National City
business owners regarding their views pertaining to the National City, California
business climate. The study was co -sponsored by the National City
Collaborative, the National City Community Development Commission and the
National City Chamber of Commerce.
Data for the study was collected during the months of October, November and
December 1997. A total of 1980 surveys were mailed to National City business
owners between October 20-24, 1997. Additional surveys were administered at
the National City Swap Meet on November 7-8, 1997.
A total of 231 business owners responded to the mailed survey. An additional 25
respondents completed surveys at the Swap Meet, resulting in a total of 256
completed surveys.
In addition to survey data, information was also collected via focus group. Two
focus groups made of the target population were conducted on November 6 and
December 4, 1997.
There were four questions on the survey that provided respondents an
opportunity to express their perceptions of the National City business climate.
The results from three of those items were combined to generate a climate
favorability rating index. The questions used for the favorability index were:
• Overall climate for doing business in National City;
• Comparison between National City and other San Diego County
cities; and
• A rating of National City as a place to own and operate a business.
Results from the business climate favorability index indicated that 58.8% of
study respondents view the climate for business in National City as favorable.
Survey respondents were also asked to rate the National City municipal
government's effort toward creating favorable business climate. Nearly half the
study respondents, 49.6%, rated the National City government good to excellent
in its efforts to create a favorable business climate. However 43.4% rated the
municipal government's effort to be fair to poor.
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
In addition to business climate favorability, study respondents were asked to
provide input on their perceptions of:
• The cost of doing business in National City as compared to other cities
in San Diego County;
• The general competitiveness of National City businesses compared to
businesses located elsewhere in San Diego County;
• The qualifications of the National City workforce as compared to the
rest of San Diego County; and
• How effectively National City public schools prepare students for work.
Over eighty percent, 80.5%, of study respondents rated the cost of doing
business in National City as moderate to low. While 79.3% reported that they
thought National City businesses are as competitive as businesses located
elsewhere in San Diego County.
Sixty-six, 66.0% percent of study respondents considered the National City
workforce to be as qualified as workers who live and work in other parts of San
Diego County. Only 40.2% of survey respondents reported that they agreed that
National City Schools prepare students effectively for work. While nearly thirty-
four percent, 33.6%, believed that the public schools were ineffective in
preparing students. However, more than a quarter of the respondents, 26.2 %
reported that they did not know how effective the public schools are at preparing
students for work.
Respondents were also asked about business owners' responsibility to help
make welfare reform work; whether or not they plan to hire employees in the
future; their employee training needs; and if the banking industry adequately
serves the National City business community.
Fifty-five percent of respondents reported that business owners have a
responsibility to help make welfare reform work; whereas, 36.3% of study
respondents either disagreed or strongly disagreed that business owners have
any responsibility. However, when respondents were asked if they would hire a
former welfare recipient, if that person was qualified to do the job, 92.6% agreed
that they would.
To learn more about business development plans of study respondents, they
were asked about their plans to hire and train employees. Nearly seventy-five
percent, 74.6%, reported they had no plans to hire new employees in the next 24
months.
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
When asked about employee training, 68.8 % of respondents reported they
currently provide training to their employees. Time involved was identified by
24.2%, of respondents as the greatest barrier to providing employee training;
followed by cost, 21.5%; and employee turnover ,18.4%.
Respondents were asked about their businesses' financial and banking needs.
When asked about the accessibility of investment capital for National City
businesses, only 32% of respondents rated the accessibility to be good to
excellent, while 45.7 % rated accessibility to be fair to poor. There were 31.6%
of respondents who rated the banking industry's effectiveness in providing
capital for business development as either good or excellent, while 47.6% of the
respondents rated banking industry effectiveness as fair or poor.
The following summary report provides more detailed analysis of all study
findings. The questionnaire can be found in Appendix A. A summary of open-
ended question responses can be found in Appendix B. The frequency
distributions are located in Appendix C and the cross -tabulations for all items
can be found in Appendix D.
Human Systems Consulting
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February 1998
1997 National City Business Climate Survey
Introduction
Background
The National City Collaborative contracted with Human Systems Consulting, Inc.
to conduct a business climate study with National City business owners
regarding the climate for doing business in National City. The study was carried
out during the months of October, November and December of 1997. This study
was part of a more comprehensive project undertaken by the National City
Collaborative to develop and support the growth of National City to create a
more livable community. It was co -sponsored by the National City
Collaborative, the National City Community Development Commission and the
National City Chamber of Commerce.
Purpose
The general purpose of The National City Business Climate Study is to provide
the National City Collaborative with National City business owners' feedback
regarding their perceptions of National City's climate for doing business. The
focus of this study is to obtain information from National City business owners
about themselves, their businesses, and the City's business economy. The
information will be used to plan and develop a technical assistance and
economic support system to insure the long-term growth and viability of National
City business community.
Specific objectives of this study are outlined below.
• To acquire feedback from business owners on their perceptions of the
National City business climate;
• To obtain information about small business owners and their business
operations;
• To identify the types of technical assistance and financial resources they
need;
• To learn how business owners see their role in welfare reform ;
• To determine whether business owners are willing to hire former welfare
recipients;
• To evaluate banking/financial service for businesses in National City;
• To gain insight on employee hiring and training needs of National City
businesses;
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
• To learn how business owners perceive the effectiveness of National City
schools in preparing students for work;
• To obtain a rating on how business owners rate the City's effort to
establish and maintain favorable business climate; and
• To ascertain the attitudes of National City business owners toward
employing National City residents.
Methodology
Sample
The target population for this study was owners of businesses that were located
and/or operated within National City. Strict eligibility requirements were
established for participants to insure that the study sample actually represented
a cross-section of National City business owners. Eligibility was limited to
business owners who owned and operated businesses located in National City
that held, at the time of the study, a valid National City business license. The
sample population was generated by using the list of current National City
business license holders as defined by zip code.
Business location eligibility for study participation was defined from two zip
codes. The zip codes were 91950 and 91951. The license eligibility criterion
was met by using the "active list" of valid business license holders provided by
National City administration officials. There were 1980 business owners who
qualified and subsequently were included in the population sample.
Data Collection
Data and information for the study was collected in two manners: by survey
instrument and through the use of focus groups. A total of 1980 business
owners who met study eligibility criteria were mailed questionnaires on October
22,1997.
Human Systems Consulting
5
February 1998
1997 National City Business Climate Survey
To insure that the study met this objective an effort was made to insure that
micro as well as small businesses owners were included in the sample
population. This was accomplished by having a small sample of study
participants complete the climate surveys at the National City Swap Meet.
Twenty-five additional surveys were completed at the National City Swap Meet
on November 7 and 8, 1997.
To compliment data collected through the business climate survey, two focus
groups made up 17 National City business owners were conducted on
November 6 and December 4, 1997.
Questionnaire Design
The survey instrument was designed to acquire all the information needed to
meet the objectives of the study outlined above. It was developed by the Human
Systems Consulting with input from the economic work group consisting of
members of the National City Collaborative.
The survey was designed to take approximately twenty minutes to complete.
The actual average time for completion was 18 minutes. The survey instrument
was translated into Spanish to accommodate Spanish-speaking respondents. A
copy of the questionnaire can be found in Appendix A.
Tabulations
Frequency distributions included or referenced in this study report were
processed using SPSS software on an IBM compatible computer.
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
Study Findings
Participants in this study were asked to respond to a questionnaire and
participate in focus groups to provide their perceptions, views and insights about
the National City business climate and factors that impact its favorability.
The topics and issues that participants were queried on included a wide range of
questions dealing with National City as a favorable place to own and operate a
business. It also asked study respondents a variety of issues and topics that
directly and indirectly impacted the economic viability of National City and its
business owners.
Respondents were asked questions pertaining to: the favorability of National
City as a place to operate a business; their views on business owner
responsibility in welfare reform; their future business development plans as they
related to hiring and training employees; the banking industry's effectiveness in
meeting their businesses' financial needs.
Demographic Profile of Respondents
Gender
Of the 256 respondents to the mail questionnaire, there were 175 males, 68.4%,
and 74 females, 28 .9%. Seven, 2.7% of the respondents failed to provide
information about their gender. A total of 17 people participated in the two focus
groups. The gender make up of the focus groups was 46.6% female and 53.4%
male.
Female
28.9%
Refused
2.7%
Male
68.4%
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
Aaes of Respondents
There were no age requirements imposed as criteria for study participation.
The median age for study participants was 45.1 years of age. The breakdown of
study respondents age categories is illustrated in the following graph.
Q28. Please check the category which includes your age.
30.0% i 24.2% 29.7%
25.0%
20.0%
15.0%J
10.0%
5.0%1.2%
0.0%
18 to 24 25 to 29 30 to 39 40 to 49 50 to 59 60 or Refused
years years years years years older
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
Respondent Ethnicity
The following graph shows the ethnic background of respondents.
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Q29. Please check the category which best
describes your ethnicity.
Hispanic Cauc-
asian
47.7%
Afric.
Amer.
17.2%
Asian
0.8% 2.0% 3.9%
Native Other Refused
Amer.
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
Education
Over eighty percent, 82.5% of the respondents had some level of college
education. Of that number, 21.9% held a college degree and 17.6% had some
graduate work or a graduate degree.
Q31. What is your level of formal education?
Education Level Number Percentage
Some high school or Tess 9 3.5%
High school graduate 33 12.8%
Some college, trade
or vocational school 110 43.0%
College graduate 56 21.9%
Graduate work or degree 45 17.6%
Refused/Don't Know 3 1.2%
Total 256 100.0%
Human Systems Consulting
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February 1998
1997 National City Business Climate Survey
Respondents' Position in Their Company
Of the study respondents, 84.8% were owners, directing managers or presidents
of their companies. All other respondents, 14.0 % identified their position as
senior manager. Three respondents, 1.2% did not identify their position. The
following graph shows the position make up of study respondents.
Owner
President/CEO Ill 9.4%
Vice President 111 2.7%
Marketing 1.2%
Dir./Mgr. +�J Sales Dir./Mgr. , 3.1%
-i-
Other Dir./Mgr. '
Asst. Mgr. 2.3%
Supervisor 2.0%
Secretary/Admin. 0 2.0%
Pastor 4 0.4%
II
Accountant 0.4%
Refused 1.2%
10.9%
64.5%
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
The businesses represent by study respondents was a broad cross-section of
National City commerce. Twenty-eight different types of businesses were
identified by respondents. Of those 28 business types, 98.9% of the respondents
identified their business type as one of the 11 listed below in the table. The table
below depicts the diversity of businesses that were represented by study
respondents.
Q7. How would you describe the type of business you operate?
Industry
Number Percent
Retail 51 19.9%
Manufacturing 37 14.4%
Consumer Services 32 12.5%
Professional Services 31 12.1%
Wholesale Distribution 26 10.2%
Automotive 25 9.8%
Food Services 14 5.5%
Construction/Plumb./Heat./Elect 12 4.7%
Real Estate 9 3.5%
Health Care 8 3.1%
Entertainment 8 3.1%
Other 3 1.2%
Total
Human Systems Consulting
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256 100.0%
February 1998
1997 National City Business Climate Survey
To insure that the sample of respondents actually represented National City
business persons, they were asked about the geographical location of their
business. Of the study respondents, 98.8% reported that their business was
located in National City, only 1.2% reported that it was not. When respondents
were asked to identify their zip code, 93.0% of respondents identified one of the
two National City zip codes, 5.5% failed to provide a response; and 1.5%
identified zip codes outside the National City geographic boundaries.
For further sample validation, respondents were asked if they currently held a
valid National City business license. Of the 256 respondents, 96.9% reported
yes, that they did have current valid business license; 2.0% reported no; and
1.2% did not respond to the item.
Length of Time Respondents' Have Been in Business
When asked how long their business had been operating or based in National
City, respondents reported a mean length of time of 13.39 years. The longest
length of time reported was 74 years, and the shortest was 1 year, creating a
range of 73 years with a median length of 10 years.
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
Size of Respondents' Businesses
There were two items on the questionnaire that addressed business size.
Respondents were asked how many full time employees they currently employed
and what their company's gross revenue was for 1996.
Nearly eighty percent, 77%, of the respondents employed 10 or Tess full time
employees and 86.8 % employed 25 or less full time employees. The following
graph shows the number of full time employees reported by study respondents.
None 11.6%
1to5 62.1%
111.11111111.1.11
6to 10 ill
1
13.3%
11 to 25 IM 9.8%
26 to 50
51to100 I
101 to 500
Refused
5.5%
2.3%
2.7%
2.7%
Human Systems Consulting
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February 1998
1997 National City Business Climate Survey
Number of Part Time Employees
Respondents were asked about the number of part time employees their
businesses employed. The median number of part time employees reported by
respondents was 1.2 . Of the respondents, 62.9% reported employing at least
one part time employee, 34.0% reported having no part time employees and
3.1% provided no response.
Q9. How Many part time employees ( 30 hours or Tess per week) are
there currently employed in your company?
Number of Part
Time Employees Number Percentage
One or More 161 62.9%
None 87 34.0%
Don't Know/Not Sure 8 3.1%
Total 256 100.0%
Gross Revenue of Respondents' Businesses
Additional information pertaining to the size of the businesses that respondents
represented was obtained by asking respondents what their companies' gross
revenue was in 1996. The median gross revenue reported by respondents was
$288,689.47 The table below depicts the distribution of their responses to this
question.
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
Q11. What was the approximate gross revenue of your
company in 1996?
Revenue Number Percentage
Less than $25,999 36 14.1%
$26,000 to $49,999 16 6.3%
$50,000 to $99,999 24 9.44%
$100,000 to $249,999 30 11.7%
$250,000 to $499,999 42 16.4%
$500,000 to $999,999 25 9.8%
$1,000,000 to $4,999,999 36 14.1%
$5,000,000 or more 16 6.3%
No answer 31 12.1%
Total 256 100.0%
Study Respondent Perceptions of the National City Business Climate
Business Climate Favorability
The core objective of this study was learn more about how National City
business owners' perceive National City as a place to own and operate a
business. For purposes of this study this perception was operationalized as
"business climate".
There were four questions on the survey that asked specifically for respondent
input pertaining to the National City business climate. The business climate
questions were items # 12a, 12c, 13a and 26, which was an open ended
question.
When asked to rate the National City business climate, good or excellent ratings
were provided by 55.8% of respondent. There were 43.4% of the respondents
who rated the climate as fair to poor. Two or .8%, of respondents reported that
they did not know.
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
Q12a. How would you rate: The climate for doing business in National
City?
Rating Level Number Percentage
Excellent 36 14.1
Good 107 41.8%
Fair 95 37.1%
Poor 16 6.3%
Don't Know 02 0.8%
Total 256 100.0%
When comparing the business climate of National City with other cities in San
Diego County, 46.9% of respondents rated the business climate as excellent or
good. There were 49.6% who rated the business climate fair to poor when
comparing it to that of other cities in San Diego County, while nine, or 3.5% gave
no rating.
Q12c. How would you rate: The National City business climate compared
to other cities in San Diego County?
Rating Level Number Percentage
Excellent 19 7.4%
Good 101 39.5%
Fair 105 41.0%
Poor 22 8.6%
Don't Know 09 3.5%
Total 256 100.0%
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
A majority of study respondents, 74.2%, strongly agreed or agreed when asked
if they thought whether National City is a good place to own and operate a
business. However, 23.6% of respondents strongly disagreed or disagreed; and
3.1% had no opinion.
Q13a. How much do you agree with: National City is a good place to own
and operate a business.
Level of Agreement Number Percentage
Strongly Agree 17 6.6%
Agree 173 67.6%
Disagree 51 19.9%
Strongly Disagree 7 2.7%
Don't Know 8 3.1%
Total 256 100.0%
Business Climate Favorability Index
To obtain a better understanding of how respondents perceived the climate for
doing business in National City a Business Climate Favorability Index was
developed. The business climate favorability index was computed by combining
and averaging the percentage positive and contrasting that with the percentage
negative of the responses for questions 12a., 12c. and 13a.
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
The business climate favorability index indicates that nearly sixty percent, 58.7%
of respondents view the National City business climate favorably. Although a
majority of respondents rated the business climate as favorable overall, 38.7%,
rated the climate unfavorably, and 2.6% were unsure or refused to respond.
Unfawrable
38.7%
Refused
2.6%
Fawrable
58.7%
Focus Group Responses to Business Climate Favorability
This finding is supported by responses by respondents to question #26, which
was the only open ended question included in the survey. Respondents'
answers to this question were segregated into three distinct categories of
recommendation as to how the business climate could be improved.
Q26. What one thing do you think would be most likely to improve the
National City business climate?
The categories include:
1. Recommendations pertaining to how laws and regulations should be
changed to improve the business climate;
2. Recommendations pertaining to public relations and image
management; and
3. Recommendations that were more or Tess miscellaneous and non-
specific in nature but generally oriented toward business climate
improvement.
A total listing of all responses to question #26 can be found in Appendix B.
Human Systems Consulting
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February 1998
1997 National City Business Climate Survey
The majority of focus group participants reported a favorable view of National
City as a positive place to own and operate a business. However strong
recommendations were expressed conceming the role that City government
should play. Here the primary focus was on:
• Better public relations with the rest of San Diego County
• A more aggressive response to inaccurate and negative press.
• More equitable treatment by City administration of all businesses as
opposed to preferences to certain groups or industries.
• A specific strategy to highlight the "good" aspects of National City.
• A desire for City Hall to take a more assertive and responsible role in
championing National City
Rating of City Govemment's Effort to Create a Favorable Business Climate
National City municipal government was rated by 49.6% of respondents to be
either good or excellent at creating a favorable business climate. Nearly forty-
five percent, 44. 3%, rated the City's effort to create a favorable climate to be fair
or poor.
Q12b. How would you rate: National City 's municipal government's effort
to create a favorable business climate?
Favorability Rating
Number Percentage
Excellent 21 8.2%
Good 106 41.4%
Fair 87 34.0%
Poor 29 11.3%
Don't Know 13 5.1%
Total 256 100.0%
Again, these findings are supported bythe written responses to question #26 of
the survey and focus group discussions. Respondents in both venues
expressed a belief that the National City municipal government should take
stronger more responsible leadership in the development of a more favorable
climate for National City businesses.
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
Opinions Toward and Involvement with the National City Community
Another core objective of this study was to learn more about study respondents'
views of other National City businesses; its residents; and their employability.
Respondents were asked to respond to questions pertaining to: the
responsibility of business owners to help make welfare reform work; their
general level of business community involvement; attitudes toward National City
residents as qualified employees; and the number of City residents employed by
their businesses.
How Competitive are National Citv Businesses
Respondents were asked to rate the overall competitiveness of National City
businesses as compared to those businesses located in other parts of San
Diego County. Respondents reported a level of 79.3 % agreement and a 16.8%
level of disagreement that National City businesses are as competitive as
businesses located in other parts of the county.
Q13b. Businesses located in National City are as competitive as
businesses located elsewhere in San Diego County.
Level of Agreement Number Percentage
Strongly Agree 22 8.6%
Agree 181 70.7%
Disagree 40 15.6%
Strongly Disagree 3 1.2%
Did Not Respond 10 3.9%
Total 256 100.0%
National City Chamber Membership
Seventy-four, 28.9% of the 256 respondents identified themselves as members
of the National City Chamber of Commerce. Whereas, 153 respondents, 59.8%,
reported that they were not members. Twenty-nine or 11.3% did not disclose
their membership status. When asked if they were members in other business
associations, 16.0% of respondents stated that they were; 67%.2 reported no
membership; and 16.8% gave no response to the question.
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
A majority, 63.7%, of study respondents reported that they do business with
people who live or work outside National City, while 33.6% of respondents
reported they do business with people who live and work in National City.
Seven, 2.7% of the respondents failed to designate with whom they do business.
Q13c. Most of the people I do business with live or work in National City.
Level of Agreement Number Percentage
Strongly Agree 18 TO%
Agree 68 26.6%
Disagree 117 45.7%
Strongly Disagree 46 18.0%
Don't Know 7 2.7%
Total 256 100.0%
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February 1998
1997 National City Business Climate Survey
Employment of National City Residents
Study respondents were asked whether their businesses currently employ
National City residents, and if they did, what percentage of their workforce did
they represent. National City residents were reported to be employed by 49.6 %
of the respondents' businesses. Slightly more than thirty percent, 30.1% of
respondents reported that they had no National City residents on their payroll,
and 20.3 % of respondents reported they didn't know or refused to respond.
Q10. Are any of your current employees National City Residents?
Don't Know/Ref.
20.3%
No
30.1%
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Yes
49.6%
February 1998
1997 National City Business Climate Survey
The 127 respondents, who reported that their businesses employed National
City residents, were asked what percentage of their total workforce was
represented by National City residents. Nearly one third, 31.0% of the
respondents reported 50% or more of their workforce resides in National City
and 11 % reported that 100% of their employees live within the City. The bar
graph below depicts their response.
Q10a. What percentage of your employees reside
in National City?
20.0%
15.0%
10.0%
5.0%
0.0%
Less
than
25%
25%
to
49%
50%
to
74%
Perceived Quality of National City Workforce
75%
to
99%
100%
When asked about the qualifications of the National City workforce, 66.0% of
respondents agreed or strongly agreed that National City residents were as
qualified as people who reside and work in other parts of San Diego County. Of
the respondents, 18.7% reported that they disagreed or strongly disagreed with
the statement that National City residents were as qualified as residents who
live and work in other areas of San Diego County.
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1997 National City Business Climate Survey
Q13e. I consider the National City workforce as qualified as workers who
live and work in other areas of San Diego County.
Level of Agreement Number Percentage
Strongly Agree 17 6.6%
Agree 152 59.4
Disagree 38 14.8%
Strongly Disagree 10 3.9%
Don't Know 39 15.2%
Total 256 100.0%
Perceptions of National City Public Schools' Effectiveness
Respondents were asked about their perceptions of how effectively National City
public schools prepare students for work. When respondents were asked their
level of agreement to whether National City public schools prepare students
effectively for employment, 33.6% respondents either disagreed or strongly
disagreed with the statement. Respondents agreed or strongly agreed at a level
of 40.2%. Sixty- seven or 26.2% of the respondents reported that they did not
know or refused to give their opinion.
Q13d. National City public schools prepare students effectively for
employment.
Level of Agreement Number Percentage
Strongly Agree 7 2.7%
Agree 96 37.5%
Disagree 65 25.4%
Strongly Disagree 21 8.2%
Don't Know 67 26.2%
Total 256 100.0%
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February 1998
1997 National City Business Climate Survey
Welfare Reform and the Employment of Former Welfare Recipients
A majority, 55.5%, of respondents from this study strongly agreed or agreed that
business owners have a responsibility to help make welfare reform work.
However, more than one third of respondents, 36.3 % reported that they
disagreed or strongly disagreed that business had any responsibility to help
make welfare reform work.
Q13h. Business owners have a responsibility to help make welfare reform
work.
Level of Agreement Number Percentage
Strongly Agree 20 7.8%
Agree 122 47.7%
Disagree 70 27.3%
Strongly Disagree 23 9.0%
Don't Know/Refused 21 8.2%
Total 256 100.0%
When asked explicitly about employing former welfare recipients, a large
majority of respondents, 92.6%, agreed that they would hire a former welfare
recipient if they were qualified to do the job. Only 2.8% of respondents reported
that they would not.
Q13i. I would hire a former welfare recipient if he or she were qualified to
do the job.
Level of Agreement Number Percentage
Strongly Agree 63 24.6%
Agree 174 68.0%
Disagree 3 1.2%
Strongly Disagree 4 1.6%
Don't Know/Refused 12 4.7%
Total 256 100.0%
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1997 National City Business Climate Survey
Enhancing Business Productivity and Performance
One of the objectives of this study was to obtain study respondents input about
their businesses' performance and productivity. Respondents were asked
questions pertaining to: employee training; the need for business technical
assistance; the banking industry's effectiveness; capital availability for growth;
and the impact of child care and transportation employee work performance.
Training and Technical Assistance
When asked about employee training, 68.8% of the study respondents reported
that they provide training to their employees, while 17.2% of respondents
reported that they did not. Thirty-six respondents, 14.1% did not respond to this
item.
Q14. Do you currently provide training to your employees?
Response
Number Percentage
Yes 176 68.8%
No 44 17.2%
Did not Respond 36 14.1%
Total 256 100.0%
However over seventy percent, 71.5% of respondents reported that the training
they provide their employees was delivered in house, as opposed to 9.4% who
reported that they used an outside source, and 9.0% who didn't respond to the
question.
Q15. Most of the training I provide my employees delivered by:
Training Source
Number Percentage
Internal Source 183 71.5%
Outside Source 24 9.4%
No Training Provided 26 10.1%
Didn't Respond 23 9.0%
Total 256 100.0%
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27
1997 National City Business Climate Survey
Investigator's note: The response levels for question #15 on the survey seems
disparate with the response levels of question # 14. However they can be
reconciled by the fact that employers ( especially small business owners) who
train their employees themselves often do not perceive their efforts as training.
Barriers to Training
Respondents were asked to identify barriers to providing training to their
employees. When asked to identify the biggest barrier to providing training to
their employees respondents identified and rated barriers in the following
manner. Respondents identified Time, 24.2%; Cost, 21.5%; Turnover, 18.4%;
and Availability, 14.1% as the four most identified barriers to providing employee
training. The table below shows the four most often identified barriers and how
respondents ranked them
Q16. What is the biggest barrier to providing training to your employees?
Barrier Rank Number Percentage
Time 1 62 24.2%
Cost 2 55 21.5%
Turnover 3 47 18.4%
Availability 4 36 14.1%
Did not Respond 0 56 21.8%
Total 256 100.0%
Use of Government Funds for Training
Study respondents were asked if they would use government funding sources to
train their employees and if they had ever hired someone trained through a
government funded program.
Slightly more than half, 55.1 % of the respondents reported that they would be
willing to use govemment funds to train their employees, while 19.1% responded
no. Sixty-six, 25.8% of the respondents reported they didn't know or were not
sure.
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1997 National City Business Climate Survey
Q17. Would you use government funds to pay for the cost of training
your employees if they were available
Response
Number Percentage
Yes 141 55.1%
No 49 19.1%
Don't Know/Not sure 66 25.8%
Total 256 100.0%
Respondents responded yes, 25.4% of the time, when asked if they had ever
hired an employee trained through a government funded program. Forty-eight
percent (48.0%) of the respondents reported that they had never hired an
employee trained through a government funded program. While 26.6% of the
respondents said they didn't know or weren't sure if they had or not.
Q18. Have you ever hired someone trained through a government
funded program?
Response Number Percentage
Yes 65 25.4%
No 123 48.0%
Don't Know/Not Sure 68 26.6%
Total 256 100.0%
A large majority of study respondents, 77.8% responded that they would not be
reluctant to hire someone trained through a govemment program. A small
percentage, 13.6% stated that they would not hire someone trained through a
government funded program. Another 8.6%, of respondents, reported they were
not sure or did not know if they would or not.
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1997 National City Business Climate Survey
Q13g. I would not hire someone trained through a government funded
program.
Level of Agreement Number Percentage
Strongly Agree 8 3.1%
Agree 27 10.5%
Disagree 164 64.1%
Strongly Disagree 35 13.7%
Don't Know/ Not Sure 22 8.6%
Total 256 100.0%
Respondents were asked about the impact of employee training on their
businesses' overall competitiveness. Respondents agreed or strongly agreed at
a level of nearly 60 percent, 57.5%. that their businesses would be more
competitive if their employees had better training. Almost 30 percent, 29.7%
stated that they didn't think better training for their employee would improve
their competitiveness. Another 12.9% of respondents said that they didn't know,
or were not sure if better training would have a competitive impact on their
businesses.
Q13f. If my employees were better trained my business would be more
competitive.
Level of Agreement Number Percentage
Strongly Agree 36 14.1%
Agree 111 43.4%
Disagree 62 24.2%
Strongly Disagree 14 5.5%
Don't Know/Not Sure 33 12.9%
Total 256 100.0%
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1997 National City Business Climate Survey
Child Care and Transportation: Their Impact on Business
Respondents were asked whether child care problems impact their employees'
performance. Respondents said yes 30.5%, no 39.8%, and I don't know 29.7%
of the time.
Q19. Do problems regarding child care ever negatively impact your
employees' ability to do their work?
Response
Number Percentage
Yes 78 30.5%
No 102 39.8%
Don't Know/Not Sure 76 29.7%
Total 256 100.0%
Respondents were asked if they agreed that better public transportation would
improve their ability to do business in National City. Levels of agreement were
about equal. Respondents either strongly agreed or agreed, at a level of 45.3%,
while 44.5% disagreed or strongly disagreed. Twenty-six respondents or 10.2%
reported that they didn't know or were not sure if better public transportation
would improve their ability to do business in the City.
Q13j. Better public transportation would improve my ability to do
business in National City.
Level of Agreement Number Percentage
Strongly Agree 29 11.3%
Agree 87 34.0%
Disagree 93 36.3%
Strongly Disagree 21 8.2%
Don't Know/Not Sure 26 10.2%
Total 256 100.0%
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1997 National City Business Climate Survey
Future Business Growth and Development Plans
Study respondents were asked about their future business growth and
development plans. They were asked about plans to hire additional employees;
what their financial resource needs were; and if the banking/financial industry
adequately serviced their businesses. Respondents were also queried as to
what, if any types, of business management technical assistance would be
beneficial to the future success and development of their businesses.
Future Plans to Hire Employees
Study respondents were asked about their plans to hire additional employees
over the next 24 months. Most respondents reported they planned to hire few if
any employees. Of the respondents, only 19.5% reported they would hire
additional employees in 3 months; 22.3% in 6 months; 29.3% in 12 months; and
22.1% in 24 months. The mean number employees that the respondents
reported their businesses plan to hire during the 24 month period was 4.5
employees.
Q20. How many additional employees do you plan to hire in the next 3,
6, 12 or 24 months?
Time Period Mean Number Percentage
of Employees of Respondents
3 Months 3.5 19.5%
6 Months 4.1 22.3%
12 Months 5.3 29.3%
24 Months 10.5 22.1%
Mean Total 5.8 23.3%
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1997 National City Business Climate Survey
Effectiveness of Banking and Financial Industry Services
Asked to rate the accessibility of investment capital for National City
businesses, 45. 7 % of respondents rated it to be fair to poor, while 32.0% of
respondents rated accessibility to be good to excellent; and 22.3% reported
they didn't know.
Q12d. How would you rate: The accessibility of investment capital to
National City businesses?
Accessibility Rating
Number Percentage
Excellent 8 3.1%
Good 74 28.9%
Fair 91 35.5%
Poor 26 10.2%
Don't Know 57 22.3%
Total 256 100.0%
Respondents were also asked to rate the banking industries effectiveness
in providing capital for business development in National City. The majority of
respondents, 47.6% rated the industry's effectiveness to be fair or poor. A little
more than 30 percent, 31.6% rated the effectiveness to be good or excellent and
20.7% of respondents reported the didn't know.
Q12e. How would you rate: The banking industry's effectiveness in
providing capital for business development in National City?
Level of Effectiveness Number Percentage
Excellent 6 2.3%
Good 75 29.3%
Fair 92 35.9%
Poor 30 11.7%
Don't Know 53 20.7%
Total 256 100.0%
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1997 National City Business Climate Survey
Needs for capital to operate their businesses
Respondents were asked whether they ever received a loan for their business
and about their current needs for capital for business operation.
When asked whether they had ever received a loan for their business from a
financial institution, 37. 1 % of respondents responded yes and 34.0% responded
no. Another 24.2 % reported that they have never applied for a loan and 4.7%
did not provide a response to this question.
Q22. Have you ever received a loan for your business from a
financial institution?
Never applied
24.2%
Don't Know/Ref.
4.7%
No
34.0%
Yes
37.1
Respondents were asked if they were in current need of a small business loan.
Seventy-seven respondents, 30.1% said they need a loan, while 52.7% said no.
Forty-four, 17.2% of respondents, reported they didn't know or were not sure.
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1997 National City Business Climate Survey
Q23. Are you currently in need of a small business loan?
Response Number Percentage
Yes 77 30.1
No 135 52.7%
Don't Know 44 17.2%
Total 256 100.0%
When the 77 respondents who said they needed a small business loan were
asked how much money their business needed, the median amount requested
was $35,624.
Q23a. How much money does your business need?
40.0%-
30.0%-'
20.0%-7
10.0%/ 5.2%
0.0%
Less $5K to $10K to $15K to $30K to $50K or Refused
than $9.9K $14.9K $29.9K $49.9K more
$5K
33.8%
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1997 National City Business Climate Survey
The respondents, who reported that they needed a small business loan were
also asked for what purpose they would use their loan. The graph below shows
their response.
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Q23b. What would you use your loan for?
55.8%
Working Bus. Equip- Remod- Bldg. Loan Refused
capital expans. ment eling purch. repay-
ment
Respondents' Need for Management Support and Technical Assistance
Study respondents were asked whether their respective businesses would
benefit from receiving technical assistance to help them manage their
businesses more effectively. Respondents were almost equally divided in their
responses. Eighty-three respondents or, 32.4% said yes; 34.0% responded no;
and 33.6% were not sure or didn't know if management technical assistance
would help their business become more successful.
Q21. Would your business be more successful if you received technical
assistance on how to more effectively manage your business?
Response Number Percentage
Yes 83 32.4%
No 87 34.0%
Didn't Know 86 33.6%
Total 256 100.0%
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1997 National City Business Climate Survey
Respondents were asked to identify the types of management assistance that
they thought would be most helpful to their businesses' success. Six types of
assistance were identified. They were: marketing; sales; accounting/
bookkeeping; employee training; management training; and planning. The graph
below depicts the types of assistance and the percentage of respondents who
reported that they would be most helpful for success.
Q24. What types of external or outside management assistance
would be the most helpful to your business' success?
40.0%
30.0%
20.0%
10.0%
0.0%
Acct./ Market- Sales Planning Empl. Mgmt. Don't
Book- ing Tmg. Tmg. Know/
kpng. Ref.
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February 1998
1997 National City Business Climate Survey
Conclusion
Findings of the 1997 National City Business Climate Survey show that National
City business owners over all have a positive view of National City as a place to
own and operated a business. Findings show that the majority of business
owners perceive National City in favorable manner; and that they think that
National City is as good a place to live and work, as any other place in San
Diego County. In addition, this study found that National City business owners
perceive National City residents and businesses as being as qualified and as
competitive as people and businesses located elsewhere in San Diego County.
National City business owners expressed a strong willingness to hire former
welfare recipients who are qualified. They also reported a positive attitude
towards hiring people who complete government funded training programs.
Business owners didn't a express as favorable view toward their obligation to
help make welfare reform work.
However, business owners believe that there is a significant need for improving
the image of National City as a positive place to live and work; and that
improving the City's image would lead to an improved business climate.
Directly related to this finding was the perceived role of City government.
Business owners would like to see the National City municipal government take
a more responsible and active role in the business climate improvement process
and the overall image of National City. Business owners would like to see
National City government take a more proactive role in marketing National City
as a positive place to live and work.
Study findings show that a high percentage of business owners are not sure how
well National City's public schools prepare students for work. However, for
those respondents who did express an opinion, almost equal numbers believe
an effective job is being done as opposed to an ineffective one. This finding
tends to support a need on the part of National City public schools to procure a
higher level of involvement with the educational process from business owners.
There is an opportunity and a need for the banking industry and financial
institutions to improve the quality of their services to the National City business
community. Business owners, who participated in this study, report that they
think that banking and financial institutions inadequately service the needs of
National City businesses. Findings also show that a many business could be
helped by a greater availability of management assistance and employee
Human Systems Consulting February 1998
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1997 National City Business Climate Survey
training support. The types of management assistance most often cited as being
needed were marketing, sales and financial management support.
In conclusion, the findings from this study show that business owners think
National City is good place to live and work. The majority of business owners are
committed to their community. However, study findings show that business
owners perceive a need to improve the National City business climate; and that
the National City municipal government should take a leadership role in this
process.
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February 1998