Over 100 Vermont companies from various industries completed the 2023 Annual Economic Survey of Vermont’s Small and Medium Business Prospects in January. 80% of the entrepreneurs surveyed have fewer than 25 employees.
The survey, presented by the Davis and Hodgdon CPAs and the Vermont Chamber of Commerce, found that business owners’ attitudes toward the Vermont economy are more optimistic than those about the U.S. economy. It is also worth noting that most business owners are optimistic about their operations and profitability in 2023 and many have significantly adjusted their business models to adapt to life after the pandemic.
Owners were again asked to identify the top three issues their business will face in 2023. In contrast to the issues identified in 2022 (72% cited pandemic-related issues as their top concern), this year 68% of respondents said they were skilled workers, 62% said health insurance costs and 33% said Vermont taxes are her top three concerns. Pandemic-related challenges fell to 22% in 2023.
New in 2023, respondents were asked to identify the changes made to their business model to adapt to post-pandemic circumstances. Not surprisingly, nearly half (49%) have adopted more digital solutions for operations and distribution, while 44% have redesigned their operations and supply chains to protect against a broader range of potential disruptions. Several (39%) have also embraced a remote office environment, while 36% have identified new revenue streams to adapt to the post-pandemic reality.
“It’s encouraging to see that despite ongoing challenges and skepticism about the economy, Vermont businesses are looking forward to an increase in revenue and spending this year,” said Bret Hodgdon, managing partner of Davis & Hodgdon Associates. “These responses suggest a positive outlook for Vermont business owners who have made the necessary adjustments to their businesses to thrive in the post-pandemic environment.”
Additionally, just over half (51%) expect their company’s revenue to increase in 2023, while 45% expect to increase spending and 41% plan to hire additional staff.
“Businesses make it possible to live, work and thrive in Vermont, but labor shortages remain a major concern,” said Betsy Bishop, president of the Vermont Chamber of Commerce. “To ensure a viable future for our state, this data further demonstrates that Vermont must address the issues that are exacerbating recruitment and retention challenges while also focusing on economic leadership.”
Each year, respondents are asked to identify a key business issue they would like the state legislature to address during the current year. Vermont business owners feel the legislature hasn’t addressed taxes adequately and reiterate that this is the main issue they face. Affordable housing and health care, over-regulation and the cost of doing business are also major concerns for business owners.
The non-academic survey, customized by Davis & Hodgdon to evaluate small and medium-sized businesses, was completed by 111 companies statewide.
For a full list of January 2023 survey results, visit: dh-cpa.com/press.html.
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