BUSINESS CLIMATE

This section of the survey reviewed the business climate in South Stormont and South Dundas. It gathered information on the owner/managers‘ perceptions of the climate and factors which facilitate/hamper the development of businesses in our area.

The businesses‘ general impressions of their community as a place in which to do business were positive. The majority of those interviewed in both townships rated their area as good to excellent, 85% in South Stormont and 78% in South Dundas. Twenty-one percent (21%) and thirty-three percent (33%) respectively in South Stormont and South Dundas expressed a change in attitude in the last three years. Of those who did express a change, their current attitudes were less positive than in the past three years, 63% in South Stormont and 71% in South Dundas. In specific numbers 15 of the 82 businesses interviewed feel more negative about doing business in their communities than they did three years ago. Two main reasons were given for these negative feelings. They include the plant closures and resulting job losses and lack of progress, and changes and improvements in our areas.

A component of business climate is the identification of barriers to the expansion of existing businesses and the development of new businesses in the community.

In South Stormont the most significant barriers identified were business taxes (44%), lack of proactive new business recruitment (41%), business insurance (33%), availability of skilled labour (31%) and availability of financing (31%).

In South Dundas the business owners weighted the significance of the barriers somewhat differently. In this township, the main concerns were business taxes (45%), water/sewer fees (33%), serviced land (33%), availability of properly zoned and designated land (33%) and water/sewer capacity (30%).

Figure 5 – Barriers to Expansion

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Business Taxes Lack of business recruitment Business Insurance Availability of skilled labour Availability of financing Water & sewer fees Lack of Serviced land Availability of properly zoned & designated land Water & sewer capacity

South Stormont South Dundas

Local government and other organizations

In the course of developing and running their businesses, owners/managers require services from the local government and other organizations.

Businesses interviewed in both townships had a high level of satisfaction with the following services provided by local government: medical and health services, fire prevention, and public utilities. In South Stormont business owners were very satisfied or moderately satisfied (81%) with policing while only 68% of the business owners in South Dundas indicated they were very satisfied or somewhat satisfied. In the two townships, significantly different levels of satisfaction were expressed in some areas. South Dundas participants had a higher level of somewhat to very dissatisfied rating with the following municipal services when compared to South Stormont—street repairs 34% (SD) and 18% (SS), garbage removal 31% (SD) and 16% (SS), snow removal 30% (SD) and 18% (SS) and planning, engineering, zoning and building permits 28% (SD) and 16% (SS).

Community organizations such as health department/health unit approvals and schools, including post secondary, as well as libraries, were ranked as satisfactory or very satisfactory by the majority of firms.

Business owners in both townships expressed less satisfaction with cultural facilities in their communities with 43% of SS and 45% of SD satisfied or very satisfied but it should be noted that a significant number of respondents indicated no contact with cultural facilities --37% in SS and 39% in SD. With regard to recreational facilities 61% of SS and 53% of SD business owners/managers indicated they were somewhat or very satisfied but again it should be noted that 19% of SS and 24% of SD survey participants had no contact with recreational facilities in their communities.

There were a number of survey questions regarding the province and its ministries as well as federal government departments and local business organizations. The majority of the firms interviewed rated -No Contact- with the provincial and federal agencies as their response. This is significant given that they have an impact on business yet the majority of firms interviewed never had contact with them. Interestingly enough, South Stormont had a 79% very or somewhat satisfied rating for Ontario as a place to do business while South Dundas had a 74% satisfaction level. Of the survey participants who indicated a fair to poor impression of Ontario as a place to do business did so as a result of the provincial bureaucracy, red tape and regulations.

The South Stormont businesses which have had contact with local business organizations like the Chamber of Commerce and BIA were, on the whole, satisfied with these organizations. In South Stormont 52% and in South Dundas 64% of business owners/managers were very or somewhat satisfied with the Chamber of Commerce, however it should be noted that in SS 38% and in SD 28% had no contact with the Chamber. Likewise with the Business Improvement Association 18% of SS and 50% of SD business managers/owners were somewhat or very satisfied but again it is significant to note that 74% of SS and 37% of SD merchants had no contact with a community BIA. Seventy-four percent (74%) of SS and 73% of SD had no contact with a Business or Economic Development Corporation. It would appear that some business owners/managers have no contact with local business organizations for ideas, support or information sharing.

When assessing factors where local improvements could be made to support and promote existing businesses and attract new businesses to the area the South Stormont and South Dundas survey respondents identified somewhat different concerns.

In South Stormont more than half of the survey participants‘ level of satisfaction was fair to poor indicating a need for improvement in the following areas:

 Municipal taxes 69%

 Access to research, development and training 67%  Size of local market 61%

 Cost of leasing space 56%

 Availability of skilled labour 54%  Transportation costs 51%

 Telecommunication infrastructure capacity 50%  Local permit process 50%

Figure 6 – South Stormont – Areas to Improve

69% 67% 61% 54% 51% 50% 50% 56% Municipal Taxes

Access to R&D & Training Size of local Market Availability of skilled labour Transportation Costs Telecommunication infrastructure capacity Local permit process Cost of Leasing

South Dundas business owners/managers‘ level of satisfaction was fair to poor indicating a need for improvement in the following areas:

 Reduction in municipal taxes 87%  Development charges 69%

 Size of local market 58%

 Availability of appropriately zoned land 55%  Local permit process 50%

 Availability of skilled labour 48%  Access to training facilities 47%

Figure 7 – South Dundas – Areas to Improve

87% 69% 60% 58% 55% 50% 48% 47% Reduction in municipal taxes Development Charges Support from Municipality Size of Local Market Availabilty zoned land Local permit process Availability of Skilled labour

Access to Training facilities

In reviewing the factors identified by owners/managers of businesses from both townships it is evident there is a common desire to see growth and development of the local market, a decrease in municipal taxes and an increase in the availability of skilled labour.